BRATISLAVA, October 20, (WEBNOVINY) — The government in Slovakia plans to introduce regionally differentiated minimum wages. ”Differentiating minimum wages according to regional conditions at the labor market will improve flexibility of employers considering wages and will support creating new jobs in regions with the highest unemployment,” suggests Slovakia’s National Reforms Program 2010. The Finance Ministry presented this program for interdepartmental review. Among Slovakia’s regions, the parity of minimum wage to median wage is highest in those with highest unemployment. Such situation can hinder wage flexibility, increase unemployment and decrease employment growth, states the material.
The minimum wage in Slovakia will rise to 317 euro in 2011. Last week the Cabinet of Iveta Radicova approved a 3 percent rise of the lowest wages compared with 2010. Leaders of governing parties agreed on such increase in spite of employers’ disapproval and an also rather disapproving position of the representatives of municipalities. The employers consider any increase in the minimum wage to be a reason for increasing unemployment. The unions, on the other hand, defend the proposal and claim increasing the minimum wages to have nothing to do with unemployment rise. The Ministry of Labor, Social Affairs and Family acted in accordance with the law on the minimum wage which in a case of a missing agreement between the social partners orders the ministry to draft an increase of minimum wages by the same percentage as Slovakia’s average wage increased in 2009.
SITA
