Slovenia: Gross minimum wage at € 1,024 in 2021

Slovenia: Gross minimum wage at € 1,024 in 2021

Slovenian Minister of Labour Janez Cigler Kralj announced after his meeting with the social partners that the gross minimum wage for 2021 would be set at 1,024 euros. This amounts to 120% of the minimum cost of living and the lowest possible rise under the minimum wage legislation. Last year, gross minimum wage stood at 941 euros.

The minister said the government intends to partly cover the raises for employers until the end of June, with the option of a six-month extension.

The next stimulus package to curb the pandemic will thus include a provision to lower the threshold for social contributions from 60% of the average salary to the sum corresponding to the minimum wage. In this way, the state shall pay approximately 40% of the raise, Cigler Kralj explained at a news conference in Brdo pri Kranju.

This will be the second most important measure in the eighth economic stimulus bill, which will also provide for an extension of the furlough subsidy scheme and additional measures to preserve jobs during the epidemic.

A new formula to calculate the minimum wage was established in 2021, in line with the 2018 amendments to the minimum wage act.

According to the new formula, the minimum wage must account for at least 20% but not more than 40% above the minimum cost of living.

Based on the latest calculations, in 2017 the minimum cost of living was estimated at € 613 for a single person. The next calculation is scheduled for 2023.

This is what particularly bothers trade unions, with head of the Pergam union Jakob Počivavšek explaining that the raise does not take into account all the price increases that have been recorded since 2017.

Although some employers insisted on freezing the raise even during their meeting with the minister, they now welcomed his opting for the lowest possible increase.

Director of the OZS small business chamber Danijel Lamperger told the STA he expected the state to keep its word about subsidizing the raise.

Meanwhile, Počivavšek criticized Cigler Kralj for predetermining the minimum wage raise before his meeting with the social partners, claiming that he announced the amount at the start of the meeting.

The ZSSS confederation said last week that it hoped for almost the highest possible raise, which implies that net minimum wage would amount to around 847 euros.

The minimum wage for each year must be set by the labour minister after consulting social partners, and the amount must be published in the Official Gazette by 31 January.

Employer organizations dissented to the amendments to the minimum wage act before they passed in late 2018, arguing that many companies could not afford to raise wages. /ibna