Belgrade Professor: Announced minimum wage rise won't cover this yr's inflation

"Utilities, food, those prices went up by more than 11 percent," the Professor recalled.

Serbia’s Finance Minister, Sinisa Mali, said that from January 1, the minimum wage will be increased by more than 14 percent. Mali said that the minimum salary will be defined by September 15 and that the intention is to reach 60 percent of the salary tax.

Professor Stojiljkovic told what negotiations on the minimum wage usually look like.

"A few months before the negotiations on the amount of the minimum wage began,

President Aleksandar] Vucic, whose job is not to deal with this issue, would say what the minimum wage would be, then the negotiations would start, the Minister of Finance would come out with the same amount, waiting for the employers and unions negotiate beforehand and then it would stay like that. It is possible that something will change, but it will be some kind of procedure

that will change]," Stojiljkovic said.

He stated that the argument is that this was the largest amount ever and that there is no room for more increases.

"The employers' association has a policy of agreeing if the increases are transferred to the state, and that is how it has been played for years. These are obscene amounts, the minimum is an offensive category. Half a million people receive that salary, that's every fourth legally employed person if you don't count entrepreneurs and businessmen. It can be higher, there are sources and ways for this. The problem is not only the minimum wage but everything below what is called a living wage. On a monthly basis, a family of three needs 114 thousand dinars. This increase of 14 percent practically does not even cover the rise in prices for this year. Utilities, food, and prices went up by over 11 percent. The minimum will be valid for the whole next year, but what will happen next year," Professor Stojiljkovic asked.