NewsCase StudiesEvents

Labour Costs Slovakia

Also in the news...

Registration of Title to Land at Abuja Geographic Information System, Nigeria

The Federal Capital Territory (FCT) Abuja, Nigeria’s capital is gradually becoming a renowned city in Africa. In recent times, there has been an influx of people into the city and its real estate development and construction sectors are developing at a tremendous pace.

FREE VISA FOR LIFE WITH COMPANY SETUP STARTING AT AED 14,500

Looking to set up your UAE company? How about a visa for life? It might sound too good to be true, but it’s a reality. And the offer ends October 31st.

4 Red Flags You Should Watch Out for When Hiring a Web Design Team

If you want to build traction for your startup, you need to invest in a high-quality website. You also can't afford to make too many mistakes, because a good website costs money.

UK showcases green dozen at Global Investment Summit

The Government reveals the 12 businesses from across the UK who will showcase their green technology and innovations at the Global Investment Summit.

Effective Approaches To Improve Fleet Efficiency For Your Business

Various types of businesses need a fleet, from car rental companies and public utilities to distribution centers, courier companies, and so many others. So, there are tons of enterprises out there that are constantly searching for better ways to enhance fleet efficiency, as any business that utilizes a fleet can ultimately enhance its bottom line if heightened efficiency is achieved.

Labour Costs Slovakia

Back to News

In case you want to expand to a foreign country, naturally one of the first questions that pop-up.. What about the labour costs ? In this article we would like to give a structured introduction in case of Slovakia.

Minimal Salary

The minimal salary is indexed every year. At the first stage an agreement between the Unions and Union of employers should be achieved and such proposal should be forwarded to the government for approval.

Nevertheless such agreement was never achieved and the government is making this decision on its own every year in September. Slovakia has now for more than 12 years a government led by the Social-democrats and this has a very strong influence on the fast raise of the minimal wage. Slovakia still doesn't have the highest minimal wage among the V4 countries and therefore keeps it's competitiveness in this area.

Regarding the future of the minimal wage recent polls revealed that the social democrats will be not so strong in the coming elections in Spring 2020 and therefore it's very likely they will be not able anymore to push the minimal wage so fast. What can hurt the employers applying this institute is the fact that this year it will be probably the last time for the coming 5 years that the social democrats will have the power to influence the minimal salary and there is expected a more than 10% raise stepping into force next year.On the other hand the right and liberal parties start to discuss also possibilities to cancel the minimal wage in case they will in the next government.




Average salary

As the economy of Slovakia is in a very solid condition there are expectations for a steady raise of the average salaries in the upcoming months and probably years by 4%-7%. Also lack of labour force and fight for every single worker contributes to this growth. In addition Slovakia will present next year a balanced budget for the first time in the history of this young country.

 


 


 

Labour costs

Total labour costs are also very important as the gap between East and West can be described as tremendous. Hereby insights based on the Eurostat data gathered in April 2019.

Obliged extra payments

Extra payments are a very actual topic because starting from May a second phase of higher extra payments steps into force.

Here is a short overview how much you must pay your staff extra in case of overtime, working night shifts or Saturday and Sunday.


Conclusion

In case you are currently considering to expand in Central/Eastern Europe as you see the main point of your decision will not be based on salary levels. As its stated from the V4 states it's not a matter of minimal, average wages or labour costs because in these numbers they are quite close.Of course, if we go more deep we can see certain differences and trends.

Other factors must be strongly considered, too. Infrastructure, reliable and available workforce, administration duties, taxes, currency, your segment, state support, etc.

In case you would like know more, feel free and contact us!

 


 

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.