Starting business in Slovenia – introduction in minimum wage!

Starting business in Slovenia – introduction in cost of living and minimum wage

There are a lot of questions about minimum wage before starting business in Slovenia. How often does it change? When did it change last? How does it relate to the living standard? Well, you are on the right place to find out all the important information. In essence, the minimum cost of living determine the minimum wage. The last calculation was done in 2017. Does this interest you? Do you consider starting business in Slovenia and recruit workers from EU or outside EU? Start today! By the way, Slovenia makes new records every year in work permits issued! Contact us and get in touch with our experts!

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Minimum wage increase proposals

Before starting business in Slovenia, we recommend you take a closer look at the wage situation. Due to the crisis, the Confederation of Free Trade Unions of Slovenia (ZSSS) called on the government to raise the minimum wage. The minimum wage for 2022 is € 1074.43 gross. Due to the rapid increase in the prices of basic necessities and energy products, the proposal to the government is to increase the wage by 8,2%, or to € 1162.53 gross. Interestingly, that is the same as the rate of inflation in the period January-June 2022. This will also be the basis for a decision on a possible change in the minimum wage. Does this help you? The prospects for starting business in 2023 are positive!

Minimum wage level and harmonization under the ZMinP

As of 2021, there is a new a new formula that determines the amount of the minimum wage under the Minimum Wage Act (ZMinP). What determines it? In essence, there are several factors that determine it. That include consumer price inflation, wage developments, economic conditions or economic growth and employment developments. Generally, they calculate it within a range of between 120 and 140% of the minimum cost of living. Also, they do it with a link to the tax rules. Normally, before starting business in Slovenia, we advise that you check the taxes in Slovenia! DATA has professional tax experts that can help you in the process of starting business!

It depends (also) on the minimum cost of living

To be clear, the minimum wage also depends on the amount of the minimum cost of living. The last calculation is from 2017 and amounts to €613.41. However, this amount no longer defines the actual minimum cost of living in 2022. Once the calculation is ready, the new minimum wage will be set by the Minister of Labour as soon as possible. Once the minimum cost of living changes, there will be a redetermination of the minimum wage within three months. Are you ready for starting business journey in Slovenia? Do you want to know more about what types of company that you can register? Just contact us! We will be happy to help you!

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The minimum wage regularly adjusts in January

Moreover, the ZMinP also provides for a regular adjustment of the minimum wage and the cost of living. The amount or level of the minimum wage adjusts each January at least in line with the increase in consumer prices. Generally, this is done using the official data of the SURS on the year-on-year increase in consumer prices in December of the previous year in comparison to December of the year before. However, it shall apply to payments for work carried out up to 1 January of the current year. According to the Labor Minister, the minimum wage will be more than €800 net in 2023. Starting business in 2023 certainly looks better for you and your potential employees.

Changes in recent years

The table below shows the changes in the minimum wage in recent years.

And don’t forget to check out our free salary calculator!

Starting business with DATA!

We see that the cost of living determines the minimum wage. However, we also see that the minimum wage grows! As a result, new record every year in issued work permits! Still have dilemmas? Don’t hesitate! Starting business in Slovenia with DATA can be done in no time! We offer quality business, accounting, and legal services! DATA has rich experience of more than 30 years! We help businesses of all sorts grow in Slovenia! Given that, if you want to remain updated about work and the latest changes related to business in Slovenia, follow our Facebook profile!