Raising minimum wage brings controversies

If the monthly minimum wage in Slovakia was raised from 520 to 600 euros, it would be the steepest growth over the last 20 years. Such a growth is backed by the ruling government SMER-SD which is currently holding talks with employers and trade unions. If the minimum wage growth followed the mechanism set by the existing legislation, the minimum wage would climb to 552 euros in 2020. While companies call for a slower growth in the minimum wage, trade unions are requesting 635 euros a month. Klub 500, which is an association bringing together employers that have more than 500 employees, rejects the proposal promoted by the trade unions. Klub 500 claims that the institute of a minimum wage is no longer a tool for improving the living standards of low-income earners, but rather an instrument to hike the incomes of the state budget, social and health insurers and towns and villages. Other employers' associations are willing to negotiate a possible valorization of the minimum wage to a level based on the current legal mechanism. They also think that given the expected slowdown in economic growth, the minimum wage for 2020 should remain at the minimum wage level of 2019.