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| What is affected by the minimum wage? |
| Bratislava, 03.09.2018 |
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| The payslip of low-income employees is not the only field depending on the final sum.
Every summer, the increase in the minimum wage becomes a focal point of discussions between the representatives of employers, employees and the Labour Ministry, who often fail to make a deal. Subsequently, it is usually the ministry that submits its proposal to the government and later the parliament.
This year seems to be no exception. The ministry proposes to raise the lowest wage to €520 as of January 1, 2019, which is €40 (or 8.3 percent) more than now. In the past 10 years, the sum has increased by 43 percent.
Labour Minister Ján Richter (Smer) backs the proposal with a test on how the increase might impact the business environment.
“Based on this test we realised it is a compromise solution,” Richter said, as quoted by the TASR newswire, adding that it will not worsen the competitiveness of companies.
However, the representatives of employers and trade unions still insist on their proposals. While the former want the minimum wage to increase the wage to €502, the latter want it to go up to €635.
The final decision concerning the minimum wage does not impact only the payslip of the low-income employees. Several fees and bonuses, also impacting people who do not receive minimum wage, are calculated from the final sum.
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