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How is salary calculated?What is included in gross?What items are deducted?Salary calculation exampleMinimum salaryAverage salary
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Common calculation mistakesNegotiating gross salaryGross or net – which is better?How to increase net salary?Regional salary differences
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Calculator
Gross to NetNet to Gross
What is Gross 1?What is Gross 2?Difference Gross 1 - 2
How is salary calculated?What is included in gross?What items are deducted?Salary calculation exampleMinimum salaryAverage salary
What taxes do I pay?Pension & Health ExplainedTax ratesSurtax – who pays it?Tax reliefs – who is entitled?Personal deduction – what is it?
Common calculation mistakesNegotiating gross salaryGross or net – which is better?How to increase net salary?Regional salary differences
Child tax reliefsReliefs for dependentsDisability reliefsHow to report tax reliefs?
Working from abroadRemote work and taxesWorking for a foreign companyDouble taxation

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).

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