Slovenia: Around 6% of workers are on the minimum wage

The minimum wage in Slovenia was increased by 0.2% in January, from €789.15 to €790.73 a month, the lowest rise since the minimum wage was introduced in 1995.

The minimum wage in Slovenia is adjusted every January in accordance with the Minimum Wage Act and in line with the previous year's inflation, and there were very high increases in 2010–2013.

According to the Agency of the Republic of Slovenia for Public Legal Records and Related Services (AJPES), 37,189 employees (6.3% of the workforce) were on the minimum wage in January. This is a drop of about one-fifth year on year, because of a recovery in the economy and higher overtime and ex gratia payments. However, the number of those on the minimum wage is still twice as high as in 2009 (19,047). The sector with the highest proportion of minimum-wage earners (23.1%) is the manufacturing sector, with 20.9% in trade, and 15.4% in administrative and support service activities. Large shares of minimum-wage earners are also found in the accommodation and food service activities, construction,and other activities ranging between 7% and 13% in January 2015 (in 2014 on average it was still around half a percentage point higher). These sectors mostly have low added value, where the labour costs represent a very high percentage of the total cost per unit.

The Association of Free Trade Unions of Slovenia (ZSSS) have for some time been demanding changes in the law to increase the minimum wage to a ‘living wage’. They are negotiating with employer organisations to try to get extra payments for night work, Sunday work and work on public holidays. However, Slovenia’s Chamber of Commerce and Industry (GZS) says this would endanger many jobs in sectors which have low added value.

 

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