The most important mechanism for protecting the existential minimum of workers in all tax systems is an institute called the "non-taxable amount of earnings" (personal deduction). In short: it is a fixed piece of your salary that is strictly legally NEVER taxed with a single penny of income tax under any circumstances!
The legislator defines that every living person, naturally, has a Minimum and absolutely essential existential mandatory living cost (the need to buy bread, electricity bills) that must exist for their bare survival in the society of the working municipality. Therefore, it is entirely fair that the state absolutely DOES NOT TAKE AND STEAL THROUGH TAXES from you this strictly basic monthly prescribed amount.
As of January 1, 2026, this non-taxable amount of earnings in Serbia is 34,221.00 RSD per month.
If your total mandatory taxable calculation of your monthly income is lower or very small and exactly the same as your assigned Deduction amount from your tax card (i.e., you do not earn anywhere near the legally prescribed line and limit of tax from all sides of the deduction numbers!), INCOME TAX then simply AND MANDATORILY is 0 RSD. Zero. Then the amount is directly (after minimum pension deduction in the fund from I and II fund) paid into your account without further reduction for the state! Many people with very small earnings and dependent members actually legally completely avoid paying this state burden!