BRATISLAVA, September 19, (WEBNOVINY) — Labor and Social Affairs Minister Jozef Mihal (SaS) does not support the proposal to increase the minimum wage in Slovakia by 3.2 percent from the beginning of next year to EUR 327.2. The minimum wage law however obliges the head of the department to make such proposal. The minister said that ultimately, the Cabinet will have the final say on the sum of the minimum wage for next year, when it will have the issue on the table sometime in October. “I personally will recommend the Cabinet, if at all we decide to increase the minimum wage, that it was not by the percentage suggested in the proposal,” he says. However, the chance is still open that representatives of employers and employees will agree on a different hike of the minimum wage. According to the vice president of the Federation of Employers‘ Associations of the Slovak Republic (AZZZ) Rastislav Machunka, they expect the Cabinet to approve a zero or very symbolic hike in the minimum wage.
The Ministry of Labor and Social Affairs has submitted for interdepartmental review a draft government resolution, based on which the minimum wage is to increase from the current EUR 317 to EUR 327.20 as of next year. The lowest wages would thus increase by 3.2 percent, by which the average wage in Slovakia grew last year. The ministry proceeded in line with the law on minimum wage, which states that if social partners fail to agree on the amount of the minimum wage, the ministry submits a proposal of an increase by the same percentage as the average wage in the economy rose in 2010. The ministry cannot propose a lower increase, it pointed out. In line with the law, the Cabinet has also the right to propose either a higher or a lower percentage increase in the minimum wage than in the draft government resolution.
In net terms, after paying taxes and payroll levies, the monthly income of a person working for the minimum wage would increase by 8.83 euros, the Labor Minister further states. If the reform of taxes and payroll levies is approved, the minimum monthly income would increase by EUR 12.65. This should apply to approximately 40,900 employees whose wages should increase by the fully amount or its part.
Representatives of the government, employers and unions did not agree upon an increase of the minimum wage as of next year at the August meeting of the Economic and Social Council. The Labor Ministry suggested a 2.9-percent increase, employers insisted on keeping the minimum wage at the same level, while unionists demanded 4.1 percent. The Association of Towns and Villages proposed a two-percent increase.
SITA