Minimal wage in the Republic of Serbia – what employers and employees should know

The minimum wage, commonly referred to as the “minimalac,” is the lowest legally permitted amount that an employer can pay an employee for work performed and hours spent on the job. Its main purpose is to ensure a basic level of financial security for employees and protect them from receiving wages below the legally prescribed minimum, regardless of the type of work they perform.

The amount of the minimum wage is not determined arbitrarily. It is calculated based on the minimum hourly rate and the number of working hours in a given month. The hourly rate is expressed as a net amount, while the total minimum wage is increased by legally prescribed taxes and contributions, which the employer calculates and pays in accordance with current regulations.

The decision on the minimum hourly rate is made every year by the Government of the Republic of Serbia, after consultations with the Social and Economic Council, which consists of representatives of trade unions, employers, and the state. The established minimum wage applies to all employees entitled to receive wages according to the Labor Law, regardless of the employer’s sector.

The minimum wage applies to employees working full-time, while for part-time employees, the wage is calculated proportionally to the number of hours worked. Employers are obliged to pay the minimum wage on time and in accordance with the law, and to maintain accurate records of working hours and wage calculations.