economy
March 13, 2026
Greater Transparency Needed in Salary System
Nearly a decade after the reform of the public sector salary system was announced, Serbia still lacks a unified and transparent model for calculating wages for over half a million employees. In the new analysis "Salary Scales in Serbia: Lessons from a Failed Reform," the Fiscal Council concludes that the attempt so far has practically failed, faltered in concept – but also presents a proposal on how the state should approach reform in the future. It points to structural weaknesses that have led to serious problems in the public sector, including strong wage compression, which has created a risk for retaining key experts and management in state institutions, and proposes a pragmatic approach based on sectoral interventions, grounded in verifiable data and a high degree of transparency.
TL;DR
- Serbia has failed to implement a unified and transparent public sector salary reform after nearly a decade.
- The original reform concept, aiming for equal pay for equal work through a unified system, was flawed and never fully implemented.
- Key issues include low base salaries and wage compression, making it difficult to retain experts and management.
- The Fiscal Council recommends a new approach focusing on gradual, transparent, and sector-specific interventions.
- This approach should be based on verifiable data and high transparency, utilizing platforms like 'Iskra' for regular data publication.
- The goal is to address specific problems in different sectors and correct structural imbalances in pay.
Continue reading the original article