Starting in January, Slovenia will increase the minimum wage to EUR 1,000 net, or EUR 1,482 gross, Labor Minister Luka Mesec confirmed on Thursday after consultations within the ruling coalition and the Government.
Mesec stated that the decision to increase the minimum wage passed both coalition and government verification, and that it represents an important step towards improving the living standards of workers. The gross minimum wage increases by 15.97 percent, while the cost for employers will increase by about 11.25 percent, because contributions are not calculated directly on the full amount of the minimum wage.
The minister emphasized that all full-time employees will now earn above the poverty line, which he said was his key goal. At the same time, he assessed that the increase is ambitious, but moderate enough not to threaten employment or cause negative economic consequences.
By increasing the minimum wage, other incomes also automatically increase, including the minimum holiday allowance, which will amount to at least 1,482 euros, as well as the mandatory Christmas bonus, which will increase to at least 741 euros.
Minister of Finance Klemen Boštjančič said that the increase in the minimum wage will not lead to budget rebalancing and that budget users will have to adjust labor costs within the existing financial framework.
While unions consider the increase a positive step, employers’ organizations warn that the new amount of the minimum wage could be difficult to sustain for small businesses and craftsmen, and call on the state to further reduce the tax burden on labor.
The government, on the other hand, says that the aim of the measure is to ensure a dignified life for employees, while preserving social security and the stability of public finances.
