The Government of the Republic of Serbia passed the Decision on the level of minimum labour wage for the period January – December 2022 and it was published in the Official Gazette of RS no. 87/2021 of 10 September 2021, while it shall apply from 1 January 2022 (“the Decision”).
Please note that, according to Article 112, paragraph 6 of the Labour Law, minimum labour price is established by working hour excluding taxes and benefits (net amount), for a calendar year, no later than 15 September of the current year and it is applied from 1 January the following year.
Net amount of minimum wage in 2022
The Decision stipulates that the minimum labour price, without taxes and benefits for mandatory social insurance, for the period January – December 2022 shall be RSD 201.22 (“net”) per working hour.
All minimum wages paid until 31 December 2021, inclusive, shall be subject to the minimum labour price established for 2021 in the amount of RSD 183.93 net per working hour, while the payments executed from 1 January 2022 onwards shall be subject to minimum labour price in the amount of RSD 201.22 net per working hour.
Therefore, the average minimum net wage of an employee in 2022, as established for the average monthly fund of 174 working hours, shall be RSD 35,012.28, compared to RSD 32,003.82 in 2021, wherefore the minimum wage for 2022 was increased by 9.4%.
Gross amount of minimum wage in 2022
Considering that the gross amount of minimum wage depends on the untaxable amount of wage as regulated by Article 15a of the Law on Citizens’ Income Tax, the rates for calculation of income taxes and rates for calculation of mandatory social insurance paid by the employees, and the announced change of current parameters in the upcoming year (announced increase of untaxable amount to RSD 19,300 in 2022 compared to the current amount of RSD 18,300), it is not possible to give an overview for the gross amount of minimum wage for the upcoming year.
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 Natalija Djukic, Associate, PR Legal
