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Increase of the Minimum Salary from January 1, 2023

Increase of the Minimum Salary from January 1, 2023

Serbia
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The Government of the Republic of Serbia has passed the Decision on the Amount of the Minimum Price of Work for the Period January – December 2023, which was published in the Official Gazette of RS no. 105/2022 dated September 14, 2022, and which shall be applied as of January 1, 2023 (“Decision”).

As a reminder, pursuant to the provisions of Article 112 of the Labour Law, the minimum price of work is determined by the Social and Economic Council, considering in particular: existential and social needs of employees and their families expressed through the minimum consumer basket, employment rate growth, BDP rate growth, consumer prices changes, and changes of productivity and average salary in the Republic of Serbia. The minimum price of work is determined by the working hour, without tax and contributions, for the calendar year, and no later than September 15, whereby it is applied from January 1 of the next year.

Net amount of the minimum salary in 2023

The Decision prescribes that the minimum price of work, without tax and contributions for mandatory social insurance, for the period January – December 2023, shall amount to RSD 230.00 net per working hour.

All payments of the minimum salary up and until December 31, 2022, shall be subject to the minimum work price that was applied for 2022, i.e., in the amount of RSD 201.22 net per working hour, while to all payments made starting from January 1, 2023, the abovesaid new minimum price of work shall be applied.

Therefore, the average minimum net salary in 2023, established for the average monthly fund of 174 working hours, is RSD 40,020.00, while for 2022 it amounted to RSD 35,012.28, which means that the minimum salary for 2023 has increased by 14.3%.

Increase of the non-taxable part of income

Regarding the gross amount of minimum salary for 2023, it depends on the non-taxable amount set out in Article 15a of the Law on Personal Income Tax, as well as the rates of tax and contributions for mandatory social insurance paid at the burden of employees, in which regard the Ministry of Finance has recently announced that from January 1, 2023, the non-taxable part of income shall be increased from RSD 19,300.00 to RSD 21,712.00.

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 Lara Maksimovic, Senior Associate, PR Legal

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