A 4.7% minimum wage increase in 2018

The minimum wage is determined based on the following indicators: consumer price inflation, wage developments, economic conditions or economic growth and employment trends. Minimum wage is adjusted to consumer price inflation once a year. This year, the Minister of Labour proposed a gross minimum wage increase from EUR 804.96 to EUR 842.79. The increase was based on stable economic growth and expectations that this stability will continue.

The proposal was met with some disapproval from the unions, who pushed for a higher increase, as well as the employers, who insisted that the increase should be no higher than inflation, i.e. 1.7%. In its statement, the ZDS (Association of Employers of Slovenia), representing employers, explained that general economic growth does not represent growth in all sectors, especially not in those where minimum wages are common – for example, in the textile industry, the leather industry, part of the timber industry and construction. The Association warned that wage increases represent a direct cost to struggling companies rather than to the growing economy. In its statement, the ZDS called for lowering of labour costs. 

As social partners failed to reach an agreement, a new gross minimum wage in the amount of EUR 842.79 for work performed since 1 January 2018 was published in the Official Gazette of the Republic of Slovenia, no. 5/2018, 26 January 2018, pursuant to the Minimum Wage Act. According to this new regulation, workers will be entitled to a net minimum wage in the amount of EUR 638.42. A gross minimum wage increase of 4.7% represents a 3.09% increase in labour costs.