The Ministry of Finance has determined an increase of 14.3% in the 2023 minimum wage. According to that, the minimum wage is 230 dinars per working hour, instead of the previous 201.22 dinars. The minimum monthly wage (an average of 174 working hours) is therefore increased from 35,012.28 to 40,020 dinars.

Economy relief

The increase in the minimum hourly wage is accompanied by economic relief. The non-taxable salary amount has been increased from the previous 19,300 dinars to 21,712 dinars, and the contributions for pension and disability insurance at the expense of the employer have been reduced by one per cent.

The increase in the non-taxable salary amount and the reduction in contributions for pension and disability insurance represent a significant relief for companies and absorb the increase in the minimum wage in 2023.

Wage calculation in 2023

Following the Decision on the amount of the minimum work price for the period January – December 2023, as well as with the amendments to the Law on Personal Income Tax and the Law on Contributions for Mandatory Social Security, below are the parameters for calculating wages in the year 2023.

Parameter Amount
The minimum wage (per hour) RSD 230
Non-taxable wages amount RSD 21 712
Pension contribution rate 24%
The lowest contribution base RSD 35 025
The highest contribution base RSD 500 360

The new parameters apply to all earnings paid during 2023, regardless of the month for which the payment is made.