As negotiations among the representatives of trade unions, employers’ association and government ended up without success, a new round starting on September 1 has been announced. According to domestic regulation, the talks should be over by September 15 and their failure would trigger government action and a special law on the subject. Currently, round 350,000 people in Serbia live on the minimum wage. The last change occurred earlier this year, when it was increased from 27,000 dinars (229 euros) to 30,022 dinars (254 euros).
Both representative unions participating in the Social and Economic Council, CATUS and TUC Nezavisnost, demanded the minimum wage be increased from current 30,022 dinars (254 euros) to 37,500 dinars (318 euros) and equalled to the minimum consumer basket. Although aware of the consequences of the corona pandemic, the unions still reminded the government of the promise made in 2018 to equalize gradually the minimum wage and the price of the minimum consumer basket until the end of 2021.
The employers were more skeptical and insisted the increase should depend on the foreseen growth of the national GDP and inflation. They said they understood the workers’ claims, but thought they were not realistic. “The new amount should depend on the economic activity, and it’s senseless to base it only on the highly uncertain prognoses”, concluded the ex-President of the Association, Atanackovic. Generally speaking, the employers could accept an increase, but only on (a usual) condition the government reduce the taxes they have to pay. They also proposed a temporary “freezing” of the minimum wage until the creation of the new government or the January 1, 2021.
The representatives of the government presented various statistical data showing the major macroeconomic trends, but on the possibility of the minimum wage increase they kept silent.
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