IN THE PUBLIC SECTOR 70,000, IN THE 40,500 PRIVATE DINAR Everyone talks about higher wages, and here is how much is earned in Serbia



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The average salary in the public sector is around 68,000 dinars, according to official statistics. At the same time, private employees earned around 40,500 dinars this year, according to a survey by the Business Support Network. The difference is therefore about 27,500 dinars or about 233 euros.

Salaries in the public sector have been increasing for several years and a new salary increase is announced for the first months of next year. In the previous four years, the monthly income of “individuals” was quite similar, around 320 euros, while this year that figure is slightly higher. However, the pay gap in the public and private sectors remains clear.

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Salary in the public sector

According to data from the Office of Statistics of the Republic, as of November this year, the average salary in the public sector amounted to 67,433 dinars. That amount is actually the average for the third quarter of this year. According to data from the Ministry of Finance for July this year, the average salary in the public sector is 68,144 dinars.

At the same time, 69,940 dinars were earned in administration (at all levels), 64,050 dinars in education and culture and 66,356 dinars in health and social protection.

Since January 2019, the salary in the public sector has increased by an average of eight to 12 percent, that is, from 5,000 to almost 10,000 dinars.

In public companies, more than 80,000 dinars

The highest salaries are in public companies. In July this year it amounted to 81,107 dinars, up from a year earlier it was 80,888 dinars in these same companies.

The largest number of public companies can boast earnings of more than 70,000 dinars on average. Only a few have a salary below the national average of about 60,000 dinars.

How are public sector wages determined?

Until April 2012, public sector wages were in line with inflation. And then the changes follow. From October 2012 to April 2014, salaries increased by a fixed percentage, in October 2012 and April 2013 by two percent, and in October 2013 and April 2014 by 0.5 percent.

After that, a fiscal rule was introduced requiring the reduction of wage expenditures to a sustainable level, so that the share of general government wages in GDP is up to seven percent of GDP. Subsequently, the state made the decision to increase salaries in accordance with budgetary possibilities.

Starting in January, institutions, institutions and companies will be able to hire according to their needs and the money they have, but with the restriction that they cannot hire more than 70 percent of new workers of the number of employees who left last year.

This year and in the growth of the private sector

Earnings in the public sector are on average about 20 percent higher than in the private sector. However, according to Finance Minister Sinisa Mali, the increase in the minimum wage raises the increase in all wages.

Dragoljub Rajić of the Business Support Network for “Blic Biznis” says that the average real salary in the private sector is around 40,500 dinars, while last year, for example, that amount was around 37,900 dinars.

This year, the Network does not have data on wages by sectors, because they did not monitor this type of data, however, looking at previous years, it can be concluded that workers in commerce are those who earn the least on average, in production a little more, while employees in services, which include IT. and telecommunications, significantly raise the average.

Despite the increase in the minimum wage, Raji estimated that in the past four years, wages in the private sector have changed very little.

“The highest average income of the public sector is contributed mostly by public companies, whose salaries raise the average. The bad thing is that most of them are monopolists in their sectors, so they can determine higher prices of services for citizens”, Dragoljub Rajic points out.



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