In January 2020, the minimum wage in Slovenia increased. On January 1, 2021, another novelty awaits business owners. A new formula for calculating the minimum wage, based on the calculated minimum cost of living, will enter into force.
Do you want to start a business in Europe? Are you also having trouble understanding what is best for the success of your business? Apply for our free webinar on company registration and business immigration!
Call our experts on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or write to us on [email protected]
Data d.o.o. has been offering support to foreign citizens with their business in Slovenia. In addition to company registration services, we also provide professional accounting services. We also have specialized legal advisors that support business owners with every aspect of business Slovenian legislation. Also, you can follow us on Facebook.
Raising the minimum wage
What will the new formula change? On 1 January 2020, the Minimum Wage Act increased the minimum wage from 667 EUR net to 700 net EUR. All allowances (for length of service, work and business performance and for more difficult working conditions) were also exempted from the minimum wage.
An amendment to the Minimum Wage Act was adopted at the end of 2019 without the consent of the social partners. Employers argue that the changes are reckless as they will deal a severe blow to individual companies and industries. The unions, on the other hand, argue that these innovations will bring positive economic and social effects.
Are you considering opening a company in Slovenia and buying real estate? Apply also for our free webinar on this topic here:
In 2021 we expect a new formula for calculating the minimum wage
On January 1, 2021, a novelty awaits us again. The amendment also stipulates that a new formula for calculating the minimum wage will enter into force at that time. The minimum full-time salary will have to exceed the calculated minimum cost of living by 20%. On the other hand, they also enforced the upper limit of the minimum wage – it cannot exceed minimum living cost by more than 40%.
New formula to calculate living costs
One of the bases for calculating the minimum cost of living is also the food basket. The Statistical Office reports that food prices have risen again on a monthly basis. The annual deflation, to which cheaper petroleum products contributed the most, was largely reduced by the higher price of food – which is as much as 3.8 percent higher. If we really decided to pre-calculate the minimum cost of living, this would again change the amount on the basis of which the minimum wage would be calculated in 2021 according to the new formula.
Are you wondering what are the most popular business activities in Slovenia? Apply for our free webinar where we will discuss this topic and the conditions for these businesses:
Are you planning to start your business in Slovenia? Contact DATA for full support!
If you do not know which of the choices is most suitable for your business do not hesitate to contact DATA d.o.o. for support! Send us an email to [email protected]. You can also call us on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or skype data.business7.
Leave a Reply