salaries increase

Serbia plans 5.1% public sector pay rise in 2026 amid inflation and fiscal stability concerns

Serbia’s 2026 draft budget is soon expected to be presented to the National Assembly, with President Aleksandar Vučić announcing a 5.1% increase in public sector salaries starting January 1, 2026. Although the International Monetary Fund (IMF) advised limiting the raise to 4%, the government decided on a slightly higher increase. Economists believe the 5.1% pay rise will not threaten Serbia’s macroeconomic stability, noting that the country faces more serious challenges such as high inflation, reduced foreign direct investment, and unresolved…