Minimum Wage 2024: Taxes, Contributions, and Key Changes

Taxes and contributions for minimum wage:

As per the new regulation, the minimum wage stands at 271 dinars per hour, signifying a 17.826% surge compared to the prior rate of 230 dinars. Employers will be required to contribute more towards employee welfare in 2024, resulting in increased taxes and contributions on net wages, maintaining a range of 56 to 57 percent for the stipulated monthly hours.

Changes in 2024: Due to the escalated minimum wage, employers will incur higher costs in paying the minimum wage. A concession has been granted in the form of an increased non-taxable portion of wages amounting to 25,000 dinars, compared to the 21,300 dinars recorded in 2023.

Basis for contribution calculation:

The Labor Law defines earnings encompassing taxes and contributions paid from earnings. Employers pay taxes and contributions on earnings on behalf of their workforce. The average earnings per employee in Serbia, recorded at 114,694 dinars between October 2022 and September 2023, serve as the linchpin for calculating mandatory social insurance contributions in 2024.

Maximum and minimum monthly contribution bases:

The maximum monthly contribution base for calculations stands at 573,470 dinars, while the minimum monthly base is 40,143 dinars, applicable from January 1, 2024.