Serbia’s labour market delivered another quarter of strong wage growth in early 2026, with earnings increasing well above consumer price inflation and supporting household purchasing power. Average net wages rose in both nominal and real terms, while higher labour costs continued to reshape operating conditions across several industries.
The average net monthly wage reached RSD 118,736 in the first quarter of 2026, representing an 11.7% year-on-year nominal increase and 8.8% real growth after inflation. In March 2026, the average net wage climbed to approximately €1,036, up 12.4% compared with March 2025.
Public-sector employees received an average net wage of RSD 124,101, while the average in the non-public sector stood at RSD 116,561.
Household Spending Supported by Higher Earnings
The increase in real wages strengthened domestic purchasing power, providing support for consumer-oriented sectors including retail, restaurants, domestic tourism, consumer services, banking products, housing affordability and value-added tax revenues.
The latest wage figures indicate that household demand continued to benefit from earnings growth that exceeded the pace of consumer price inflation during the quarter.
Labour Costs Rise Across Business Sectors
While stronger wages supported consumer spending, they also increased operating costs for labour-intensive industries. Retailers, hospitality businesses, logistics providers, construction companies and manufacturers faced higher payroll expenses alongside rising subcontractor charges and service costs.
Export-oriented businesses also encountered higher domestic labour costs while competing in European Union markets. The wage environment increased the importance of productivity improvements, automation, energy efficiency and process management within manufacturing and export operations.
Minimum Wage Increase Raises Cost Base
Serbia’s minimum hourly wage increased from RSD 337 in late 2025 to RSD 371 in 2026, lifting the statutory wage floor.
The higher minimum wage affects operating costs in sectors including cleaning services, security, retail, hospitality, warehousing, light manufacturing and agriculture-related services, while increasing earnings for lower-income workers.
Wage Growth Expected to Moderate During 2026
The baseline outlook for 2026 projects average net wage growth of 8% to 10% in nominal terms and 4% to 6% in real terms, slower than the pace recorded during the first quarter but remaining above inflation.
The data indicate that Serbia’s labour market continues to experience strong wage growth even as employment indicators soften, with labour availability, workforce retention, automation and productivity remaining important factors for employers operating in an increasingly medium-cost business environment.
