The latest data from the Republic Institute of Statistics reveals that the average net salary in the public sector in Serbia was 100,912 dinars, while in the private sector, it was 97,581 dinars—3.4 percent lower on average. This salary gap highlights ongoing labor market trends, with experts noting that the market is now functioning more effectively than in the past, with workers having more options due to the declining birth rate and the increasing mobility of new generations.
Nebojša Atanacković from the Union of Employers pointed out that today’s labor market no longer offers the stability it once did, as workers now have the freedom to choose their jobs, salaries and working conditions. He explained that sectors like plumbing or ceramics are seeing a shortage of skilled workers, which is leading to greater competition for labor. Atanacković also noted the financial constraints faced by the public sector, which limits its ability to adjust salaries based on demand.
To retain quality employees, many private sector employers are offering incentives such as the “thirteenth salary” or other performance-based bonuses. Atanacković highlighted that with the lowest unemployment rates ever seen, companies are increasingly turning to foreign workers to fill vacancies and prevent economic setbacks.
Miloš Turinski from the “Infostud” portal explained that salary levels in Serbia’s private sector are influenced by a high demand for workers, especially in qualified roles. As employers compete for skilled labor, salaries are rising, and the salary gap between the public and private sectors is narrowing. While salaries in the public sector are fixed and regular, private companies offer more flexibility, including faster career advancement and better benefits packages.
Turinski also emphasized that, according to an “Infostud” survey, young people rank state-owned companies as the third choice for employment, after foreign companies and entrepreneurship. This shift reflects a broader trend where job seekers are prioritizing factors like company culture and benefits over job security and salary alone. Additionally, Serbia is facing a significant shortage of workers in skilled trades, with over 70,000 foreign workers receiving work permits last year.
Overall, while the labor market in Serbia presents new opportunities, the demand for skilled labor continues to challenge employers, particularly in sectors like construction and manufacturing. The increase in foreign workers and the rise of flexible benefits packages in the private sector highlight the evolving dynamics of Serbia’s workforce.
