Parliament adopts changes to calculating minimum wage

If the tripartite partners fail to agree, the wage will have to equal 60 percent of the average pay.

Illustrative stock photoIllustrative stock photo (Source: TASR)

The pattern for calculating the minimum wage will change as of 2021. It will have to equal at least 60 percent of the average gross wage from two years prior.

This stems from an amendment to the law on the minimum wage drafted by the Smer MPs, approved by the parliament on October 16, the SITA newswire reported.

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This means that in 2021, the average wage will be calculated from the average pay in 2019. As a result, the minimum wage may rise from next year’s €580 to €653.

The September macroeconomic prognosis of the Institute for Financial Policy (IFP), which runs under the Finance Ministry, expects the minimum wage in Slovakia to amount to €1,088 gross this year. The exact amount for 2019 will be specified by the Statistics Office next March, SITA reported.

Agreement will be more important

Before applying the pattern, there will be space for the employers and the trade unions organisations to make a deal about the minimum wage increase.

If they manage to agree on the minimum wage for 2021 until July 15, 2020 or at the meeting with the government’s representative until August 31, 2020, the sum will be binding.

Related articleMinimum wage increase is the highest in 17 years Read more 

However, it is not very probable that the employers and the trade unions organisations will make a year next year, since they have failed to do so in the past 20 years, SITA wrote.

Another change is that if the tripartite fails to agree on a new sum for the minimum wage and the new pattern will be applied, the sum will no longer require the approval of the government.

The amount of a monthly and hourly minimum wage will have to be published in the Collection of Laws, SITA reported.

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