Average Salary in Serbia

1. Average wages

The average salary in Serbia has seen a steady increase over the years, reflecting both the country’s economic development and the government’s efforts to improve living standards. As of the most recent data In December 2023, the typical worker in Serbia earned an average gross salary of 130,405 Serbian dinars before taxes and deductions. After accounting for taxes and other withholdings, their average take-home pay, or net salary, was 95,093 dinars.

The average salary in Serbia is not uniform across different sectors and can vary significantly based on several factors such as industry, experience, education, and location. For instance, employees in the IT sector or those employed by multinational corporations typically earn higher than the national average, whereas wages in the agricultural or textile industries might fall below it.

Moreover, the average monthly salary can be influenced by the level of urbanization. Employees working in major cities like Belgrade, Novi Sad, or Niš, where the headquarters of many companies are located, usually receive higher compensation compared to those working in smaller towns or rural areas.

It’s also important to note that the average salary in Serbia is reported gross, meaning before taxes and social contributions are deducted. This gross figure gives a raw estimate of income but does not accurately reflect the take-home pay of Serbian workers, which is lowered by the country’s tax and social security contribute rates.

While the average monthly salary provides a general idea of the earnings one can expect in Serbia, it is essential to look at a range of wages for a more comprehensive understanding. The median salary, which represents the middle wage separating the higher half from the lower half of the wage spectrum, can sometimes give a better sense of the typical income, as it is less skewed by extreme values at either end of the scale.

Continued economic reforms, foreign direct investment, and the integration into European markets are likely to keep influencing the average salary in Serbia, potentially leading to further wage growth and changes in the employment landscape.

2. Factors that influence salaries

Salaries in Serbia, as in any other country, are influenced by a myriad of factors. Understanding these can help provide a clearer picture of why there may be wage disparities and what to expect within various sectors or job roles. Below are some key factors that typically influence salaries in Serbia:

• Education: Higher educational attainment often translates into better-paying positions. Professionals with university degrees or specialized certifications tend to earn more than those with only high school diplomas.
• Experience: Work experience is another significant determinant of salary in Serbia. Employees with years of experience in their field are likely to command higher wages than entry-level workers.
• Industry: The industry in which one works greatly affects earning potential. For example, the IT and finance sectors generally offer some of the highest salaries, while agriculture and textiles tend to have lower wage averages.
• Company Size and Profitability: Larger companies or those with higher revenues can typically afford to pay their employees more. Multinational corporations often offer higher wages compared to local businesses due to greater resources and international funding.
• Location: Geographical location within Serbia plays a crucial role. Urban areas like Belgrade or Novi Sad, being economic and technological hubs, usually feature higher salaries compared to rural areas.
• Occupation: Salaries vary widely among different job titles and functions. Management positions, healthcare professionals, and engineers usually receive higher wages than those in unskilled labor, services, or administrative roles.
• Gender: Unfortunately, gender can also be a factor affecting wages, with men sometimes earning more than women for similar roles or responsibilities, although efforts are being made to address this gap.
• Economic Conditions: The overall state of the economy, including inflation rates, economic growth, and employment rates, can influence average salaries. Economic downturns may suppress wages, while periods of growth could lead to salary increases.
• Supply and Demand for Labor: The availability of skilled workers versus the demand for such labor can impact salaries. High demand for specific skills can push wages up, whereas an oversupply might result in lower pay.
• Government Legislation: Minimum wage laws, tax policies, labor laws, and other regulations can affect take-home pay and overall salary levels.
• Union Representation: Being part of a trade union can also influence one’s salary. Unions often negotiate collective agreements that can secure better pay, benefits, and working conditions for their members.
• Foreign Direct Investment: Countries with substantial foreign direct investment typically have certain sectors that pay more due to the involvement of foreign companies paying competitive wages to attract skilled workers.

This complex interplay of factors makes it clear that an individual’s salary in Serbia is contingent upon a broad set of conditions, ranging from personal attributes such as education and experience to broader economic and legislative frameworks. These variables can either concatenate to bolster one’s income or collectively impose limitations on wage growth potential within the Serbian job market.

3. Minimal Wages (monthly and hourly)

The concept of minimal wages in Serbia refers to the lowest legal salary that an employer can pay its employees. This is a crucial component of labor rights that ensures workers are paid a basic minimum for their labor efforts. The government periodically adjusts the minimum wage to account for cost of living changes, inflation, and other economic factors.

As of the latest figures, the minimum wage in Serbia is calculated both on a monthly and hourly basis, allowing for a comprehensive understanding of the minimum earnings potential for workers:

• Monthly Minimum Wage: The current monthly minimum wage in Serbia stands at a specific amount in Serbian dinars (RSD), which is also often presented in Euros (EUR) to provide a comparative perspective internationally.
  • for a month with 160 working hours – RSD58,288
  • for a month with 168 working hours – RSD61,381
  • for a month with 176 working hours – RSD64,474
  • for a month with 184 working hours – RSD67,566
• Hourly Minimum Wage: The hourly minimum wage is set at a particular rate in RSD, providing a benchmark for part-time workers or those whose working hours vary. Like the monthly figure, the hourly rate is gross, with actual take-home pay being less after deductions.
  • for a month with 160 working hours – RSD364,3
  • for a month with 168 working hours – RSD365,3
  • for a month with 176 working hours – RSD366,3
  • for a month with 184 working hours – RSD367,2

It’s important to note that these minimum wage figures apply across various sectors regardless of the nature of work, ensuring a standardized baseline salary. However, certain collective agreements or industries may offer higher minimum wages than those mandated by the state.

The minimum wage is not just a reflection of the government’s commitment to protecting low-income earners, but also an indicator of the country’s socio-economic status. Despite being a safety net, the minimum wage in Serbia is subject to debates about its adequacy in terms of providing a living wage and keeping up with the cost of living.

Furthermore, enforcement of the minimum wage laws is essential to prevent exploitation and ensure that employers adhere to the legal requirements. The government, through its labor inspectorates, performs checks and may impose penalties on businesses that fail to pay the statutory minimum wage.

Regular reviews and updates to the minimum wage are necessary to make sure that it remains relevant and effective in safeguarding the economic well-being of the Serbian workforce.

4. Gender Wage Gap

In Serbia, like in many other countries worldwide, a gender wage gap is a noticeable issue that reflects the differential earnings between men and women. This gap can be understood through various indicators such as average hourly earnings, median wages, and overall income disparities over a lifetime. The gender wage gap is influenced by a host of factors including occupational segregation, educational attainment, work experience, and societal norms around gender roles.

Historically, men have tended to occupy higher-paying positions and industries, often stemming from traditional views on occupations suitable for each gender. For example, industries such as construction and manufacturing, which generally offer higher wages, are predominantly male-dominated. Conversely, sectors like education and healthcare, which tend to have a higher proportion of female employees, may offer lower average salaries.

Another contributing factor to the gender wage gap is the issue of career interruptions or part-time work, which is more common among women due to childbearing and family care responsibilities. Such breaks in employment negatively impact women’s career progression and long-term earning potential, often resulting in lower pensions and benefits as well.

• Direct Discrimination: This occurs when men and women are paid differently for doing the same job or work of equal value. Despite being illegal, such practices may still exist covertly.
• Indirect Discrimination: Institutional practices that appear neutral but disadvantage one gender over another. For instance, seniority systems could inadvertently favor men who, statistically speaking, are less likely to take career breaks.
• Educational Choices: Educational fields chosen by men and women lead to different career paths with varying levels of remuneration. Science, Technology, Engineering, and Mathematics (STEM) fields, typically leading to higher-paid jobs, have traditionally seen lower participation rates from women.
• Negotiation and Promotion: Men are often perceived to negotiate salaries more aggressively and are more likely to be promoted to higher-level positions than their female counterparts.

The Serbian government and various non-governmental organizations are actively working to reduce the gender wage gap. Measures include promoting policies that encourage equal pay for equal work, improving the transparency of pay scales, supporting women’s entrance into higher-paying industries, and providing greater childcare support to allow women to remain in the workforce.

Despite these efforts, closing the gender wage gap is a complex challenge that requires sustained commitment from both the private and public sectors, as well as a cultural shift towards recognizing and valuing the work and contribution of women equally to that of men.

5. Highest Paying Occupations

In Serbia, like in many countries around the world, certain occupations command significantly higher salaries than others due to factors such as required expertise, demand for specialized skills, and economic impact. Below is a list of some of the highest paying occupations in the Serbian job market:

• Information Technology Managers: With the increasing importance of technology in all sectors, IT managers who can effectively oversee tech operations and strategy are highly sought after.
• Software Developers: The rapid growth of the IT sector in Serbia has led to a high demand for skilled software developers, particularly those specialized in high-demand programming languages and frameworks.
• Medical Specialists: Medical professionals, especially those in specialized fields such as cardiology, neurology, and surgery, are among the top earners due to the extensive education and training required.
• Dentists: Given the private nature of many dental services, dentists with their own practices or those working in upscale clinics tend to have high earning potential.
• Pharmacists: Their crucial role in healthcare, combined with a solid educational background, places pharmacists among the well-paid professionals.
• Engineers: Engineering experts, particularly in fields like mechanical, electrical, and civil engineering, draw handsome salaries aligned with the technical and complex nature of their work.
• Finance and Banking Experts: Professionals in the finance sector, including investment bankers, financial managers, and advisors, often see substantial remuneration for their knowledge and ability to navigate the financial markets.
• Executives and Senior Managers: Top executives and senior management positions in large companies or multinational corporations receive high salaries reflecting their responsibility in making critical business decisions.
• Legal Professionals: Lawyers, especially those specializing in corporate law, intellectual property, or international trade, command high fees for their services and expertise.
• Marketing Managers: In an increasingly competitive marketplace, marketing managers who can lead successful campaigns and strategic branding initiatives are essential and thus well-compensated.
• Sales Managers: Successful sales strategies directly impact a company’s bottom line, making experienced sales managers valuable assets and leading them to earn high wages.
• Air Traffic Controllers: The high-stress nature of the job coupled with the imperative need for precision and quick thinking makes air traffic control a lucrative career choice.
• Aviation Pilots: Pilots, particularly those flying international routes, are paid premium salaries for their specialist training and the responsibilities they carry.
• Electrical Engineers: Involved in designing and developing new electrical systems, electrical engineers are in high demand, reflecting in their substantial earnings.

While these occupations represent some of the highest-paying roles in Serbia, it is important to note that individual salaries can vary widely even within these professions, influenced by factors such as years of experience, employer size, and specific industry demand. Additionally, the ongoing development of the Serbian economy, with its integration into European markets and global industries, is likely to shape the landscape of high-earning occupations in the future.

6. Annual Average Wage Growth

The annual average wage growth is a key indicator of economic health and reflects the changing dynamics of a country’s labor market. In Serbia, like in many transitional economies, wages have historically experienced variations in growth rates due to a range of factors, including economic reforms, foreign investments, and government policies.

Recent years have seen a trend of gradual increase in the average wages in Serbia. The rate of wage growth can be attributed to several contributing elements:

• Economic Stability: Serbia’s continued focus on stabilizing its economy has led to higher levels of investor confidence and increased employment opportunities, which in turn exert upward pressure on wages.
• Inflation Adjustment: Wages are often adjusted to keep up with inflation, ensuring that the purchasing power of employees does not diminish over time.
• International Investments: An influx of international companies setting up operations in Serbia has led to competitive salary offerings to attract skilled workforce, thereby pushing the overall wage levels higher.
• Public Sector Increases: Government decisions to raise salaries in the public sector often result in ripple effects throughout the economy, influencing wage growth in the private sector as well.
• Labor Market Demand: Growing industries such as IT and finance require specialized skills, leading to higher wages for qualified professionals in these fields.
• Legislative Changes: Amendments to minimum wage laws or tax regulations can directly affect take-home pay and contribute to overall wage growth.

The specific rate of annual average wage growth may vary from year to year; however, it generally traces an upward trajectory. It is essential to analyze these figures in real terms, adjusting for inflation to understand the actual increase in purchasing power for Serbian workers.

While the general trend indicates positive growth, disparities still exist across different regions and sectors, reflecting the ongoing challenge of balanced economic development within the country. Continued investment in education and workforce development, alongside strategies to enhance productivity, are vital to sustaining healthy wage growth in the long term.

As Serbia progresses towards further integration with the European Union and global markets, these factors will play a substantial role in shaping the trajectory of average wage growth, influencing the standard of living and the economic prospects of its citizens.

7. Compensation Costs (per hours worked)

Compensation costs per hour worked represent a crucial aspect of understanding the labor market and overall employment costs in Serbia. They encompass not only the wages and salaries paid to employees but also include various non-wage costs such as employers’ social security contributions, taxes, and other employment-related expenses.

• Wage and Salary Costs: The largest component of compensation costs is the direct remuneration in the form of wages and salaries, which are typically agreed upon in the contract of employment.
• Social Security Contributions: In addition to wages, employers are required to pay social security contributions for their employees, which cover health insurance, pension and disability insurance, unemployment insurance, and injury at work insurance. The rates for these contributions are set by law and represent a significant part of the total employment costs.
• Taxes: Employers also bear the responsibility of withholding and paying certain taxes on behalf of their employees, although the primary tax burden typically falls on the employee.
• Additional Benefits: Some companies offer additional benefits to attract and retain talent, such as bonuses, private health insurance, transportation allowances, meal vouchers, or company-funded retirements plans. These benefits, while not mandatory, contribute to the total cost of compensation.
• Training and Development Costs: Investments in employee training and professional development can also be considered part of compensation costs, as they are essential for maintaining a skilled workforce and improving productivity.

The specific figures for compensation costs per hour worked vary across different industries and occupations due to factors like collective bargaining agreements, industry-specific regulations, and the skill levels of workers. Nevertheless, understanding these costs is important for both policymakers and business owners as it affects decisions related to hiring, pricing of products or services, and competitiveness in both domestic and international markets.

In an effort to maintain a balance between fair wages for workers and competitive operating costs for businesses, the Serbian government may adjust policies that impact compensation costs. This includes setting or changing minimum wage levels, amending social security contribution rates, or providing tax incentives for certain economic activities.

It is worth noting that compared to some Western European countries, Serbia’s compensation costs per hour worked tend to be lower, which has made the country attractive for foreign investments in sectors such as manufacturing, IT, and customer service. However, continuous attention to the quality of the working conditions and striving for alignment with EU standards remains a key objective for the Serbian labor market.

8. Comparison with other countries

When examining the average salary in Serbia, it is beneficial to compare it with other countries to understand its position in the global market. Such comparisons highlight the cost of labor, quality of life, and economic health. They also provide context for international businesses considering investment in Serbia or for professionals pondering career opportunities abroad.

Below is a comparison of Serbia’s average salary with neighboring countries in the Balkans, as well as with selected countries in Western Europe and the global stage:

Country	Average Monthly Salary (EUR)
Serbia	636
North Macedonia	474
Bosnia and Herzegovina	610
Armenia	573
Croatia	1135
Slovenia	1479
Germany	2815
United Kingdom	2715
United States	4212

The figures in the table represent the average gross monthly salary in each country and are based on data from various sources such as governmental statistics, international organizations, and global salary databases. The actual values have been omitted in this example but would typically be filled in with the most recent and accurate data available.

Generally speaking, Western European countries and the United States tend to have higher average salaries compared to Serbia and its Balkan neighbors. However, it is important to consider the cost of living, which is often significantly lower in Serbia. This can mean that while nominal salaries may appear smaller, the purchasing power of individuals in Serbia might not differ as drastically when the cost of living is accounted for.

The comparisons also reveal the impact of economic integration, with EU member states like Slovenia and Croatia exhibiting higher average salaries than non-EU Balkan countries. This can be attributed to access to a larger market, increased foreign direct investment, and adherence to EU labor standards and regulations.

Furthermore, in Serbia, sectors with high levels of international investment, such as IT and finance, can offer salaries that are competitive with Western markets, attracting both domestic and international talent.

Within the regional context, Serbia’s salary levels are relatively aligned with those of its immediate neighbors, reflecting similar economic structures and labor market conditions. However, economic reforms, continued EU accession negotiations, and an increase in foreign direct investment are factors that could significantly improve Serbia’s wage scales in the future.

In conclusion, while Serbia’s average salary remains lower when compared to Western countries, the nation offers a dynamic labor market with growing sectors capable of providing competitive wages and an attractive cost of living. For international businesses and investors, these comparisons underscore Serbia’s potential as a hub for cost-effective operations with a skilled workforce.