The Government of the Republic of Serbia, in accordance with Article 112, Paragraph 2 of the Labor Law (“Official Gazette of RS”, Nos. 24/2005, 61/2005, and others), has adopted a new Decision on the minimum wage for 2025. According to the new decision, the minimum wage will be 308 dinars net per working hour, representing an increase of 13.65% compared to this year’s wage of 271 dinars.
The new minimum wage will apply from January 1, 2025, and all employers will be required to pay wages according to this rate. The total monthly amount of the minimum wage will vary depending on the number of working hours in a given month:
- For a month with 160 working hours – 49,280.00 dinars;
- For a month with 168 working hours – 51,744.00 dinars;
- For a month with 176 working hours – 54,208.00 dinars;
- For a month with 184 working hours – 56,672.00 dinars.
The minimum wage is the basic indicator for paying the lowest salaries, and its amount is determined by the minimum hourly wage, excluding taxes and contributions. The law clearly stipulates that the minimum wage cannot be lower than the amount that was valid in the previous year.
In addition to the wage increase, as of January 1, 2025, a new tax relief will come into effect, reducing the tax base from the current 25,000 dinars to 28,423 dinars. This change has been proposed by the Government and is expected to be adopted soon.
We would like to remind you that these changes will affect all employers and employees, so it is important to adjust your business operations in a timely manner in line with the new legal obligations.