While the average wage depends on economic development, the state has an impact on the minimum wage, which is decided upon by a tripartite, consisting of employers, trade unionists and public prosecutors.
If the tripartite does not agree on the wage level for a given year, the decision is made by the government alone. This has become a trend in recent years.
Minimum wage negotiations for 2019 led to a disagreement between trade unionists, who wanted to increase it to €635 per month, or €3.649 per hour, and the National Union of Employers, who proposed increasing minimum wage to €502 per month, or €2.885 per hour. Later, the Labour Ministry submitted a draft to increase the minimum wage for 2019 to €520 per month, or €2.989 per hour, the Etrend.sk website reported.
This €40 increase would lead to a year-on-year increase of 8.33 percent. After tax, the employee earns €430.35, or a 6.74-percent higher net wage.
Lower limit impacts
Minimum wage impacts the population and firms differently, especially during the economic expansion currently taking place in Slovakia.
Read more: What are the risks of increasing the minimum wage? How will salaries of state employees change?
26. Sep 2018 at 6:30 | Peter Adamovsky