The Social and Economic Council of the Republic of Serbia passed the Decision on the amount of the minimum salary for the year 2025. The Decision was published in the Official Gazette of the Republic of Serbia No. 74/2024 on September 4, 2024.
Unlike previous years, when the Government made decisions on the minimum wage due to the inability of social partners to reach an agreement, this time the decision was made by the tripartite council, in accordance with the Labor Law.
According to the Labor Law, the minimum salary is determined by a decision of the Social and Economic Council, taking into account, in particular, the existential and social needs of employees and their families as reflected through the value of the minimum consumer basket, employment trends in the labor market, the growth rate of Gross Domestic Product, consumer price trends, productivity changes, and average wage trends in the Republic of Serbia.
The minimum salary is set per working hour, excluding taxes and contributions, for the calendar year, and must be determined by September 15 of the current year at the latest. It is effective from January 1 of the following year.
Net Amount of the Minimum Salary for 2025
The Decision establishes that the minimum salary, excluding taxes and mandatory social security contributions, for the period from January to December 2025, is set at 308 dinars net per working hour. This represents an increase of 13.7% compared to this year’s minimum salary of 271 dinars.
For all payments of the minimum salary up to December 31, 2024, the minimum wage rate established for 2024, which is 271 dinars net per working hour, will apply. For payments made from January 1, 2025, the minimum wage rate of 308 dinars net per working hour will be applicable.
The total monthly amount of the minimum salary will vary throughout the year depending on the number of working hours in the month:
- For a month with 160 working hours (February and November) – 49,280.00 dinars;
- For a month with 168 working hours (March, June, and August) – 51,744.00 dinars;
- For a month with 176 working hours (April, May, and September) – 54,208.00 dinars;
- For a month with 184 working hours (January, July, October, and December) – 56,672.00 dinars.
Gross Amount of the Minimum Salary for 2025
The gross amount of the minimum salary for 2024 depends on the non-taxable portion of the salary, as defined by the Personal Income Tax Law, as well as the rates at which income tax and contributions for mandatory social security are calculated for the employee.
In this regard, it has been announced that starting from January 1, 2025, the non-taxable portion of the salary will be increased by the same percentage as the minimum salary, which is 13.7%. This means that the amount of 25,000 dinars will be raised to 28,423 dinars.
This article is to be considered as exclusively informative, with no intention to provide legal advice. If you should need additional information, please contact us directly.
By Anja Stanojevic, Junior Associate, PR Legal
