The Republika Srpska is entering its fourth year of constant increases in the minimum wage, as well as increases in the prices of products and services. New increases have been announced for next year, which is why there is already widespread talk of a new round of price increases. Statistics show constant wage increases, while the Federation of Trade Unions of the Republika Srpska confirms with its calculation of the average consumer basket that the standard of living of citizens living on wages is getting lower. It is also a fact that budget revenues are higher year after year due to price increases, so only the state benefits from inflation.
Just today, the social partners agreed that from 2026, the minimum wage for unskilled workers will be 1,000 KM, which is an increase of 100 KM, for skilled workers 1,050 KM, for those with a four-year degree it will be 1,100 KM. Employees with a higher education degree will receive 1,350 KM, and for those with a university degree at least 1,450 KM.
At the same time, entrepreneurs are announcing that the price of services will increase from the New Year, by at least 10 percent. – Everything is getting more expensive. The electricity bill will be higher, we will have higher costs for employees due to the increase in the minimum wage. We have no choice but to raise our prices. We also have to live – says the owner of a hair salon from Banja Luka.
Citizens and businesses have been ‘prepared’ since the summer that they will receive higher electricity bills from January 1. Distribution companies are asking the regulator to increase the network fee. If their demands are accepted, electricity bills will be 18 percent higher.
So far, every increase in the minimum wage has been accompanied by an increase in product prices, primarily food. According to the latest data from the Statistical Office, food is 5.4 percent more expensive in September than in the same month in 2024. Since inflation began to gallop, that is, in three years, food in the RS has been on average about 30 percent more expensive.
The average consumer basket for a four-member family, according to the calculations of the Confederation of Trade Unions of the Republic of Serbia, cost 2,774.61 KM in September. The share of food costs approached half of the basket amount and amounted to 46.03 percent. Housing costs account for about 24 percent of the consumer basket, and the rest relates to hygiene, clothing and footwear, transportation and education.
