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:

An overview of minimum hourly wage under various shift regimens:

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.

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:

* In case of regular performance of work on Saturday, Sunday, and overnight there a possibility to agree on a lower amount of wage supplement