On the 24st December 2018, an Act on Amendments to the Minimum Wage Act was published. Within it, it determines a new amount for minimum salary. From the 1st January 2019 onwards, the new amount of minimum salary is 886,63 EUR. This means that employers, which have employees on minimum salary, have to pay them at least 886,63 EUR starting from 1st January 2019.
Minimum wage in Slovenia – responsibilities of the employer
When doing business in Slovenia, the employer has to abide by the Slovenian regulation. When it comes to minimum wage, the article 134 of the Employment act determines that the employer has to pay the salary for a period that cannot be longer than one month. The employer has to pay the salary until the 18th day in the current month for the previous month. The payout date can even be earlier if the employment contract states so. If the payout date is a non-working day, the employer has to make the payment the next working day. The employer has to inform the employees in advance about the payout date. If the payout date is different than usual, the employer also has to notify the employees.
The employer has to take into account the new payout date of the minimum salary for work done starting from 1st January onwards. To make sure that your company follows these regulations, it is good to have consultation from legal advisors.
Minimum wage in Slovenia – overtime
In addition to the changes with minimum wage, you have to abide by new directives of overtime. If you will be doing business in Europe, specifically in Slovenia, we also inform you about the latest court practice about overtime. This means that if there is an uneven distribution or temporary redistribution of worktime, the employer has to take into account the full-time work as an average work responsibility in the period that cannot be longer than 6 months.
With this, the law has determined a reference period (for example, from 1st January 2019 to 30th June 2019), in which the employer has to perform a compensation of work hours in a manner that when the reference period is over, the average work load accounts to as many hours that either the law or the collective agreement determine as full-time. There are no grounds to transfer additional work hours to the next reference period for compensation. This means that using the additional work hours in the next period is not allowed.
Uneven distribution of work time means that the work time in the 6-month reference period could amount to more than the average (weekly or daily) work-time in a specific part of the period, while in other time it amounted to less. It is important the within this 6-month period the work responsibility is evened out. If some additional work hours are not even by the end of the reference period, they fall under overtime. The employer has to pay out such overtime in addition to minimum wage.
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Opening a company in Slovenia with the assistance of Data!
If you have decided to open a company in Slovenia, Data can offer you full support.
We can assist you both in the processes before, during and after company registration. You can also register the company at our office, because Data is a licensed VEM point and can perform company registrations.
Data also has its own legal department that can help to understand the labor legislation. They can also assist with providing answers with the contractual obligations pertaining to minimum salary.
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