Representatives of the Government, employers, and trade unions have failed to reach an agreement on the new level of the minimum wage on Monday.
According to the Labour Minister Jan Richter, the Association of Employers Unions (AZZZ) along with the Republican Union of Employers (RUZ) didn't agree with a Government proposal to increase the minimum wage from the current €352 per month to €380. They objected to individual minimum wage bands, additional bonuses for work on stand-by, and overtime rates that depend on the level of the minimum wage. According to the Union of Employers‘ head Marian Jusko, the proposed increase in the minimum wage and subsequent hikes in expenditures on salaries are too steep. "Given the current situation in industry and the level of competition in key industries, such an increase in expenditures could have a negative impact on the competitiveness of Slovak industry and on maintaining or creating new jobs”, said Jusko. He added that apart from the planned rise in the minimum wage, employers are already facing increases in expenditures due to energy prices and measures related to the environment. The minister finds the fact that the council wasn't able to reach a consensus disappointing, even more so because the Government has an interest in compensating for the expenditures of employers emerging from the first ever hike. This compensation should come in the form of payroll deductions relief.
