Minimum monthly wage to go up to €480 next year

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Minimum monthly wage to go up to €480 next year

12. 10. 2017 14:18

As of next year, the minimum wage in Slovakia will rise from the current €435 to €480 euros. The Cabinet green-lighted this measure on Wednesday. According to the Labour Ministry, the hike in salary should help lowest-earning employees to escape from poverty. Over the last 10 years, the minimum wage has risen by 80%, as in 2008 it was at a level of 269 euro. The biggest hikes, however, have come in the past three years. Next year, people with the lowest income should receive €29 more in their net salary, which brings the entire pay after taxes to €403.

"We are deeply convinced that this kind of rise in the minimum wage has positive effects on developments in unemployment in Slovakia, mainly by increasing people's motivation to work", Branislav Ondruš, the State Secretary at the Ministry of Labour, Social Affairs and Family, explains the policy move. However, parliamentary opposition points to the fact that the state will profit from the rise of the minimum wage the most. While the employee receives €29 more, the state gets €41 back in taxes and levies. The representatives of work unions welcome the rise in minimum wage, but they would also appreciate if the state came up with a clear formula for calculating it in the future, such as 50% of the average income in the national economy, for example.

Zuzana Botiková, Photo: Bryan

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