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The Government of the Republic of Serbia

In the service of citizens

New minimum wage RSD 9,570 per month

Belgrade, 23 January 2007

Serbian Minister of Labour, Employment and Social Policy Slobodan Lalovic said today that the minimum cost of labour for the period January-June 2007 will be RSD 55 per working hour, which means that the minimum monthly net wage will be RSD 9,570.

Slobodan Lalovic at today's press conference

Lalovic, who is also chairman of the Socio-economic council, told a press conference held after the council's regular session, that in relation to the previous minimum cost of labour, the increase is 12.24%.

The Minister said that representatives of the Association of independent trade unions of Serbia, the United Branch Trade Union "Nezavisnost", the Serbian government and the Serbian Employers' Association reached a full agreement on the new minimum cost of labour, which has been set in line with the labour law.

According to Lalovic, the minimum wage is 42% of the average wage in Serbia, with which the policy, conducted in the past three years, of increasing the minimum wage a little more than the average wage has been continued.

He also voiced hope that in April or May parliament will adopt amendments to the Law on employment which envisage that workers who are redundant in their companies and lack five years in order to fulfill one of the conditions for retiring, receive allowances for three years, and that the state pay their contributions for two years.

The state would pay only contributions to such employees but since they will also receive severance pay from the firm, essentially employees would receive money for four years, and paid contributions to social insurance for all five years, explained Lalovic. He added that such social activities by the state for making vacancies for young persons are supported by major foreign investors such as US Steel and Phillip Morris.

The Minister also expressed expectation that next week talks on demands by the Serbian Trade Union of Health and Social Care Employees for higher salaries for non-medical staff and employees in special psychiatric establishments will be continued

Lalovic pointed to the fact that funds for increasing salaries have been secured within the Health Insurance Fund for 2007, but it is necessary to hold additional talks.