The Socio-Economic Council has made a decision that will impact a large number of employees in Serbia – the minimum wage will be extraordinarily increased starting from October 1, 2025, marking a precedent in the usual wage adjustment practice.

At a regular session of the Socio-Economic Council held on July 15, 2025, a unanimous decision was made to implement an extraordinary increase in the minimum wage. According to the decision, the minimum hourly wage will increase by 9.4%, rising from 308 dinars to 337 dinars. In other words, the monthly minimum wage will not be less than 58,630 dinars (approximately 500 euros) by the end of 2025.

This change will take effect on October 1, 2025, and represents an exception, as minimum wage adjustments are traditionally implemented at the beginning of the year. The last increase took effect on January 1, 2025, when the hourly rate was raised from 271 dinars (2024 level) to 308 dinars. However, due to inflationary trends and rising living costs, it was decided that mid-year intervention was necessary.

In addition, an increase in the non-taxable portion of income has been announced – from 28,423 dinars to 34,221 dinars – which represents a form of government support to employers, aimed at reducing business burdens.

Although unexpected, the decision of the Socio-Economic Council received support from both trade unions and the Employers’ Union of Serbia, indicating a shared recognition of the need to provide workers with increased compensation. The broader effects of this decision – both on the labor market and on business operations – remain to be seen in the coming months. It was also announced that, starting January 1 of next year, the minimum wage will be increased again.