It is well known that the labor pool in the Western Balkans has been depleted. For a long time, Croatian employers have not sought foreign workers from the Western Balkans, even though these are countries from which we have traditionally drawn labor that has always assimilated quite well. The labor shortage due to emigration to foreign countries is, as expected, also troubling neighboring countries, and this problem, as in our case, creates economic and demographic challenges that have far-reaching consequences.
A large number of workers, especially young and highly educated ones, have long emigrated from the region to more developed countries of the European Union in search of better opportunities, and there are fewer and fewer other qualified workers. The consequence that all Balkan countries feel is an increasingly pronounced labor deficit in key sectors such as construction, manufacturing, healthcare, and IT, which puts pressure on governments and employers to react. One of the most common measures that governments take to mitigate these trends is to increase the minimum wage, but in the hilly Balkans, wages are still far lower than in more developed EU countries.
A Turning Point in Serbia
For example, the minimum wage in Serbia is around 400 euros. A recent agreement between the government and social partners has stipulated an increase that should amount to 457 euros by the beginning of 2025. For Belgrade, this is a significant turning point, while unions in Serbia warn that these amounts are still much lower than the expected wage that one could live on, especially since about one hundred thousand workers receive the minimum wage.
In Montenegro, the current minimum wage is 450 euros. As part of the “Europe Now 2” program, the signature economic program of the government of Milojko Spajić, an increase in the minimum wage is expected in October with a unique dual structure. The minimum wage will rise from 450 euros to 600 for jobs performed by workers with secondary vocational education or 800 euros for highly educated workers.
Two Entities – Two Minimum Wages
In Bosnia and Herzegovina, the situation is more complicated as the two entities have different minimum wages. In the Federation of BiH, the net minimum wage is 316 euros, while in the Republic of Srpska it is 459 euros. However, both entities face similar problems in paying these wages, as many employers avoid reporting workers to pay them the necessary minimum.
