Average Salary in Serbia
The average salary is the most frequently mentioned macroeconomic indicator of economic strength and citizen standards in Serbia. It is calculated and published monthly by relevant state statistical offices and insurance funds (such as PIO Fund (Pension and Disability Insurance)).
Average (Arithmetic) Salary
It is obtained by simply adding absolutely all salaries paid in the country in that month and dividing by the number of all employed people. Due to the influence of extremely high managerial salaries (so-called "outliers"), this indicator is often unrealistic and higher than what most workers earn. According to many data points, a significant majority of workers receive a salary lower than the formal "Average Salary".
Median Salary
The median represents the most accurate indicator of reality and is significantly lower than the average salary. It is the exact "middle number" – the value that divides the range of earnings exactly in half. This means that exactly half (50%) of employees in the country have a lower salary than the Median, and exactly the other half (50%) of employees receive a higher salary than it.
Use of Average Salary in Law
Although it doesn't perfectly show the standard of living, the average gross salary is regularly officially published and it is not just a statistical data point, but a LEGAL basis from which various limits and fixed payments for the next year are then calculated.
For example, based on this numerical data on the average salary, the following are fixed:
- Maximum monthly and annual bases for calculating contributions.
- Minimum bases for contributions for certain categories of insured persons.
- Flat-rate contributions for freelance/sole-proprietors (paušalisti).