A very “thin” minimum wage envelope in Serbia

Belgrade, Feb. 15 2010 (Serbia Today) – According to the last info released to media a minimum monthly wage in Serbia was in the second half of 2009 RSD 15.138 (155 Euros or 206 US dollars). When Labor Unions asked Government last year that this amount be raised for 3.5% to meet the growth of the living costs, the request was denied.
Recent proposal by the Labor unions in regard to the adjustment of minimum wages for 2010 is still not addressed by the government and it is expected that this question be resolved at the next session of the Social economy Committee. The prospects of the raising minimum wages are very small taking in the account the situation in the Serbian industrial sector. Last year industrial production went down 12.5%, the number of employees went down 5.1% and the average wages went down 8.6%.
According to economy experts in Serbia, bad economy policies and large public spending caused this situation in Serbia. If government raises minimum wage based only on the growth of the living costs, and not based on the realistic revenues from the business sector this will cause further problems for the Serbian economy.
Similar situation is in other countries of the former Yugoslavia with the exception of Slovenia. The minimum monthly wage there was recently raised for 22% ant it is now at 562 Euros ( $765).