From next year, the minimum wage in Slovakia will be set according to new rules. This stems from an amended law on minimum wage, which is to come into effect on February 1 of 2008. According to the new law, employers should agree with representatives of unions on the new level of the minimum wage, while their negotiations should start by April 1 at the latest. In the event that social partners fail to reach a consensus on minimum wage growth during their tripartite negotiations, minimum wage will be increased by the growth rate of the average monthly nominal wage in Slovakia every year as of January 1.
According to the law, the expected development of consumer prices, employment, average monthly wage, as well as subsistence level growth, should be taken into consideration in negotiations on minimum wage growth. In line with the new law, minimum wage should increase according to the new mechanism for the first time as of January 1, 2009. Minimum wage, which was increased to SKK 8,100 in early October of this year, will thus be valid until the end of next year.
Last year, the minimum wage was increased according to then valid mechanism, in line with which social partners had to agree on the new amount of minimum wage until the end of July of a calendar year. In the event that they did not reach a consensus, the Cabinet decided on the new level of the lowest wage, while there were no restrictions for their increase. As of last October, the minimum wage increased from SKK 7,600 to SKK 8,100.
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