Despite the record-breaking hike in the level of the minimum wage from €352 to €380 per month as of next year, Slovak companies employing people for this wage won't see their expenditures rise, the Hospodárske Noviny daily reported on Tuesday. The reason is that the state is ready to exempt them from the obligation to pay health-insurance levies for these employees, according to a plan unveiled by Finance Minister Peter Kažimír on Monday. The change should apply to some 500,000 workers. In practice, the measure will help thousands of companies save hundreds of euro per person per year. If it weren't for the exemption, firms employing people for the increased minimum wage would have to fork out €513 instead of the current €478 per employee per month.
The Finance Ministry expects that the relief will prompt higher interest in creating new jobs on the part of companies, and curb the motivation of employers to provide illicit work. “With such a tax relief, we would be able to invest into the redevelopment of our working environment”, said Renata Dechetova, director of Senica-based textile manufacturer Kufner Textil. Some economists, however, believe that the plan may be partly effective. According to INESS analyst Radovan Durana, the changes won't contribute towards the creation of new jobs, but it only softens the consequences of the introduction of higher minimum wage.
