The minimum wage in Slovenia in 2020 will possibly be frozen! The governments plans to use a new formula to calcaute the minimum wage in Slovenia on January 1 2021. That would mean it will amount to at least 20% above the minimum cost of living. Employers warn that increased costs would only further strain the financial stability of the company This would lead to an increase in the number of unemployed and possible bankruptcies of companies.
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Minimum wage in Slovenia will possibly be frozen in 2020!
According to employers, the minimum wage in Slovenia for 2020 stay the same in 2021 as well, because the COVID-19 epidemic has brought many companies financial troubles, and the new way of calculating the minimum wage in 2021 would put a heavy burden on business.
Proposal to change the calculation of the minimum wage in Slovenia
The minimum wage for 2020 is different from the minimum wage for 2021. From January 1, 2021, you will have to calculcate the minimum salary according to the new formula. It will amount to 20 percent above the minimum cost of living. For now, no one knows what the minimum wage will be after the new year. This is because no official data on the minimum cost of living exists yet.
Proposal to change the calculation of the minimum wage in Slovenia
The minimum wage for 2020 is different from the minimum wage for 2021. From January 1, 2021, the minimum salary will use a new formula for the calculation. The minimal wage will amount to at least 20% above the minimum cost of living. For now, we do not have any official data on the minimum cost of living yet so the information on minimum wage in Slovenia 2021 is not certain.
Employers’ associations: the minimum wage in Slovenia in 2020 should be frozen
Due to the uncertainty, many employers warn from the beginning of the epidemic that raising the minimum wage in Slovenia after such an uncertain year will be a great challenge for many companies that do not even know how they will be able to survive in the next years.
Therefore, they propose freezing the minimum wage in 2020. Thus, in 2021, the minimum wage should amount to EUR 940.58 and should not be calculated in accordance with the proposed formula.
The GDP will possibilty reduce by more than a 7%. But in almost all industries, the effects of the epidemic were even tougher for some companies than official statistics show. They doubt that the situation will improve in the first half of 2021. Therefore, any increase in operating costs would only further shake the stability of the company. This would lead to an increase in the number of unemployed and company bankruptcy.
The unions are against this proposal
The unions insist that workers work harder during the epidemic. They also work together with employers to get through these difficult times. Therefore, they deserve that the minimum wage next year will be higher than the minimum wage in 2020.
What is the position of the Ministry of Labor?
The ministry, which found itself between two fires, is informing both sides that they will be able to confront its opinions at the Economic and Social Council. The Ministry will then decide on changes to the minimum wage in Slovenia.
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