UGS Nezavisnost: Agreement on minimum wage increase for 2021 not reached

Representatives of trade unions, employers and the Government of Serbia finished the first round of negotiations about a potential increase of the minimum wage for 2021 on August 25, 2020, but no final agreement has been reached. The parties presented their positions and the negotiations are to continue next Tuesday, said a member of the work group of the United Branch Unions “Nezavisnost” (UGS Nezavisnost), Zoran Ristic.

He told Beta that the trade unions, UGS Nezavisnost and the Confederation of the Autonomous Trade Unions of Serbia (SSSS), as members of the Social-Economic Council (SES), took the position that the minimum wage should increase from RSD 30,022 to RSD 37,500, equal to the minimum consumer basket.

According to Ristic, this would increase the hourly minimum wage from RSD 172.54 to RSD 216.75.

One of the reasons for increasing the minimum wage, despite the Covid-19 crisis, according to the unions, is the fact that, in 2019, an agreement was reached within SES to equalize the minimum wage with the value of the minimum consumer basket in 2021.

Employers' representatives, according to him, took the position that the minimum wage should increase in line with the projected growth of the GDP for the next year, which is 6%.

The members representing the Government of Serbia, that is, the Ministry of Labor, Employment, Veteran and Social Policy, presented the statistical data on the macroeconomic trends, but didn't state whether they were in favor of having the minimum wage increased.

Ristic said that they were expected to present their position in the next round of negotiations.

Representatives of unions, employers and the Government of Serbia, as well as SES members, should finalize the agreement on September 14, at the scheduled SES session. If no agreement is reached, the decision on a potential increase of the minimum wage will be reached by the Government of Serbia, as proscribed by the law.

Vlada Republike Srbije

UGS Nezavisnost Beograd

Savez samostalnih sindikata Srbije

SSSS

UGS Nezavisnost

SES

minimum wage

minimum consumer basket

Zoran Ristić

consumer basket