MINIMUM WAGE AS OF 1 JANUARY 2021
On 26 August 2020, the Government of the Slovak Republic passed the draft bill proposing an increase in the minimum wage as of 1 January in the following manner:
- Monthly minimum wage is to reach the amount of €623
- Hourly minimum wage is to reach the amount of €3.580
Comparison of minimum wage in 2020 and 2021:
||Applicable as of 1 January 2020
||Proposal to be made applicable as of 1 January 2021
||Act on minimum wage no. 663/2007 Coll. and the Slovak Government Regulation no. 324/2019 Coll.
||Act on minimum wage no. 663/2007 Coll. and Act no. 311/2001 Coll. – Labour Code
|Minimum monthly wage
|Minimum hourly wage
An overview of minimum hourly wage under various shift regimens:
|Weekly working hours
||Hourly minimum wage
|40 hours – single-shift operation
|38.75 hours – two-shift operation
|37.5 hours – three-shift operation
MINIMUM WAGE AND ITS IMPACT ON MINIMUM WAGE ENTITLEMENTS AS OF 1 JANUARY 2021
An employer whose employee compensation is not negotiated in a collective agreement shall be obliged to provide the employee with a wage at least in the amount of the minimum wage entitlement determined for the labour difficulty rating of the respective employment position.
It simultaneously results from the above that the employer must classify each position under a specific category of labour difficulty rating, which depends on the complexity, responsibility and laboriousness of work in compliance with the labour difficulty rating characteristics as provisioned by the Annex no 1. of the Labour Code.
Note: Only employees working under regular employment contract shall be entitled to minimum wage pursuant to labour difficulty ratings above. Employees working under an agreement outside the scope of employment contract shall only be entitled to the minimum wage.
As of 1 January 2021 also the mechanism for determination of these minimum wage entitlement is changed.
In comparison to 2020, the changed calculation of minimum wage entitlement in 2021 will result in the adjustment of the minimum wage entitlement which increases by €43 for each degree of labour difficulty rating.
Hourly minimum wage entitlement for a particular degree of labour difficulty rating with 40 work hours per week shall be calculated as 1/174 from the minimum wage entitlement calculated for employees remunerated with monthly wage.
An overview of minimum wage in 2020 and 2021 depending on the degree of labour difficulty rating:
For the sake of comparison, we present thew overview of minimum wage in 2020 and 2021 depending on the degree of labour difficulty rating with working time comprising 40 work hours per week.
|Degree of labour difficulty rating
||Minimum wage coefficient
||Monthly minimum wage in 2020
||Monthly minimum wage in 2021
||Hourly minimum wage in 2020
||Hourly minimum wage in 2021
||€ 1 044
||€ 1 087
||€ 1 160
||€ 1 203
MINIMUM WAGE AND ITS IMPACT ON WAGE ALLOWANCES AFTER 1 JANUARY 2021
The draft amendment will also change the mechanism for calculation of wage allowances, which are connected to the minimum wage. The amount of these wage benefits shall not be determined by percentage of the hourly minimum wage anymore, but from 1 January 2021 on, it will be determined as a fixed amount.
Below, we provide the introduced amounts of hourly wage supplements applicable as of 1 January 2021:
Minimum amount of hourly wage supplements (allowances) in 2021 determined as a fixed amount:
|Category of the hourly wage supplement - overtime and other premiums
||Fixed amount of hourly wage supplement
||Fixed amount of reduced hourly wage supplement *
|Supplement for working on Saturdays
|Supplement for working on Sundays
|Supplement for working overnight – no-risk profession
|Supplement for working overnight – risky profession
|Supplement for working during holidays (agreement)
|Supplement for complicated performance of work
|Supplement for non-active stand-by status
* In case of regular performance of work on Saturday, Sunday, and overnight there a possibility to agree on a lower amount of wage supplement