The Government of the Republic of Serbia has adopted the Decision on the Amount of the Minimum Labour Cost for the Period January–December 2027, which was published in the Official Gazette of the Republic of Serbia, No. 75 of 20 August 2026.
As of 1 January 2027, the minimum labour cost will amount to RSD 405 net per working hour, compared to the current RSD 371. This represents an increase of RSD 34 per hour, or 9.2% compared to 2026.
The amount of the minimum wage depends on the number of working hours in a particular month:
- 160 hours – RSD 64,800 net
- 168 hours – RSD 68,040 net
- 176 hours – RSD 71,280 net
- 184 hours – RSD 74,520 net
Accordingly, the minimum wage should not be viewed as a fixed monthly amount, but rather as an amount that depends on the number of working hours in a given month.
At the same time, according to the announcement of the Ministry of Finance, the non-taxable portion of salary will be increased from RSD 34,221 to RSD 37,369, representing an additional parameter relevant to payroll calculations in 2027.
The increase in the minimum labour cost requires employers to review and adjust their payroll calculations in a timely manner as of January 2027. Particular attention should be paid to employees whose salaries are contractually agreed or effectively calculated at the level of the minimum wage, as well as to the correct calculation of all applicable taxes and social security contributions.
Employers should already take the new minimum labour cost into account when planning payroll costs for 2027, preparing budgets and labour cost projections, as well as when reviewing the compliance of existing employment contracts and internal policies.
For additional information or consultations, the Tasić & Partners team is at your disposal.