economy

May 1, 2026

‘Agony forced’: Minimum wage into account, the rest in an envelope, who wins and who loses

For years, I received part of my salary 'by hand', as did many in Serbia.

‘Agony forced’: Minimum wage into account, the rest in an envelope, who wins and who loses

TL;DR

  • Over 65,200 dinars is the current minimum wage in Serbia.
  • Approximately one in five employees in Serbia receive part or all of their salary in cash.
  • This practice is often seen among the poorest and younger workers (18-29 years old).
  • The state loses billions of euros annually due to undeclared cash payments.
  • It negatively impacts future pensions and the health fund.
  • Businesses that comply with regulations face unfair competition due to higher costs.
  • The grey economy is most prevalent in construction, trade, and hospitality.
  • Proposed solutions include increasing the non-taxable part of wages and stricter enforcement of regulations.
  • Croatia has banned cash payments for salaries since 2023, requiring all transactions to be direct bank transfers.

Continue reading the original article