President Aleksandar Vučić said on Thursday that his administration will increase both salaries and pension benefits, and urged the public to "hold me to my word" if he fails to deliver. The pledge, reported by the daily Novosti, marks the latest major social promise from the long‑standing leader as Serbia grapples with stagnant earnings and a growing demand for better retirement income.
Economic backdrop
Serbia's labour market has long been characterized by low average wages compared with regional peers, while pension levels have struggled to keep pace with rising living costs. The country's economy, though showing modest growth, remains vulnerable to external shocks and domestic fiscal pressures. In this context, promises of higher pay and pension adjustments carry significant weight for a populace that has expressed frustration over purchasing‑power erosion.
Political implications
Vučić, who has served as president since 2017 and previously held the premiership, leads the Serbian Progressive Party (SNS), which dominates the national parliament. The wage and pension pledge arrives ahead of the 2026 parliamentary elections, a period when the ruling coalition traditionally seeks to solidify its support base among workers and retirees. While the president did not disclose specific percentage increases, he framed the commitment as a "social contract" that the government cannot break.
"Hold me to my word!"
The statement was delivered during a televised press conference in Belgrade, where Vučić emphasized that the upcoming fiscal plan would allocate sufficient resources to finance the promised improvements. He noted that the government would work closely with the Ministry of Finance and the pension fund to ensure the adjustments are sustainable and aligned with broader economic goals.
Novosti highlighted that the announcement did not include detailed figures or a timeline for implementation, leaving analysts to await further clarification from the cabinet. The lack of concrete numbers has prompted speculation about the scale of the increase and the potential impact on Serbia's public finances, which have already been under strain from pandemic‑related spending and debt servicing obligations.
Opposition parties, while not quoted in the source, are expected to scrutinize the promise and demand transparent budgeting to prevent any fiscal imbalances. Trade unions and pensioner associations, traditionally influential in Serbian politics, have historically advocated for larger, more predictable adjustments, and may seek formal commitments in forthcoming negotiations.
The next step, according to the government’s own messaging, is to incorporate the wage and pension revisions into the upcoming budget proposal, slated for parliamentary debate later this year. If enacted, the measures would be among the most significant social policy shifts in Serbia since the early 2020s, potentially shaping voter sentiment ahead of the next electoral contest.
