Minister Proposes Raising Minimum Wage 4.7% to EUR 842.79 Gross

By , 15 Jan 2018, 15:35 PM News
Minister Proposes Raising Minimum Wage 4.7% to EUR 842.79 Gross Pixabay - CC0

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33,000 employees currently receive the minimum wage. 

January 15, 2018

The STA reports on January 15, 2018, that the Labour Minister Anja Kopač Mrak proposes raising the statutory minimum wage in Slovenia by 4.7% to EUR 842.79 gross a month, which amounts to 638.42 net.

The proposal, which factors in inflation, as well as trends in recent years and the outlook for stable economic growth, will be put forward to the Economic and Social Council, an industrial relations forum.

Under the law, the minimum wage for the year is determined by the minister in charge after consulting social partners, that is trade unions and employers.

In fixing the amount the minister has to take into account the annual inflation rate measured in December the previous year, while it may also consider pay trends, economic growth and employment trends.

The amount of minimum wage needs to be made public by the end of January and is valid for work done as of 1 January.

Speaking to reporters on Monday, the minister said that the proposal took into account the period between 2013 and 2017, when "we went from a period of uncertain economic growth to a period of very stable and exceptional economic growth, and a stable growth is expected for the coming period".

During that time, the average pay rose by 4.2% and the minimum wage increased by 2%, while companies' net profit rose 17-fold, the minister said.

The Economic and Social Council is to discuss the proposal on Friday with the minister expecting "an interesting and agitated debate".

The rise would increase the labour cost for employer by 3% to 983.42 euro per worker. Businesses give EUR 8.5bn for wages and the proposed rise would increase the cost by 0.21%.

"I believe the economy can take such a cost today," the minister said, adding that businesses would have to allocate 0.6% of their profit for the rise.

The minister said that pressure for a rise in the minimum wage was at its strongest in countries with weak social dialogue, and she called for changing the pay model.

Ministry data show that 33,000 employees currently receive minimum wage, including 8,000 in the public sector, so that the cost of the proposed rise for the state budget would be EUR 2.9m.

Kopač Mrak's proposal comes after she recently announced that her proposal would be the "maximum from the aspect of available legislative possibilities".

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