Serbian President Aleksandar Vucic said on Wednesday the minimum monthly wage in Serbia was expected to be increased significantly and that the average wage would exceed 710 euros next March.

“We want to give the minimum wage a significant increase in a serious manner, but the burden of that will be handled by the state, not by employers. We need 300 mln euros for that, and we, as the state, will provide the cash,” Vucic said, adding that the government would try to reduce all taxes and contributions on wages to 60.2 pct.

He said the minimum wage increase would not threaten further FDI inflow to Serbia.

“It will definitely be a double-figure increase, we expect to talk to employers as well, but since the state will undertake the burden, it will be 12 or 13 pct, or perhaps even 14 pct,” Vucic said.

That means the Serbian average wage is expected to exceed 710 euros in March 2023, without jeopardising the debt-to-GDP ratio, he noted.

He said public sector wages would see a double-figure percentage increase, too.