The Slovenia Times

Finance minister, SMC surprised by minimum wage raise proposal

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The response comes after Minister Anja Kopač Mrak proposed raising the statutory minimum wage by 4.7% to EUR 842.79 gross a month, which amounts to 638.42 net.

According to the minister, the proposal factors in inflation, as well as trends in recent years and the outlook for stable economic growth, taking into account the period between 2013 and 2017.

It is the period when "we went from a period of uncertain economic growth to a period of very stable and exceptional economic growth, and a stable growth is expected for the coming period".

But Finance Minister Vraničar Erman said after a coalition meeting on Monday evening that it was not completely understandable to her on what arguments the concrete proposal was based.

Vraničar Erman noted that the average wage was up by 2.8% in the public sector and by 2.5% in the private sector on the annual basis, while inflation was at 1.7% last year, and the estimated productivity growth at 1.6%.

"All these numbers, which could justify a rise in the minimum wage, are much lower than the proposed rise in the minimum wage," the minister said, adding that she expected from Kopač Mrak to present the arguments for the proposal.

The head of the SMC deputy group Simona Kustec Lipicer also took issue with the proposal, saying that the SMC had learned about it from the media. This is unacceptable, she told the press on Monday, adding that the proposal would be discussed.

According to her, a raise in the minimum wage will not solve the key problem - a high number of recipients of the minimum wage.

The head of the coalition Pensioners' Party (DeSUS) Karl Erjavec said that it would be nice if Kopač Mrak had informed the coalition partners about the proposal in advance, but added that DeSUS supported a higher minimum wage.

There are still some employers who have good results but nevertheless do not want to share this with their employees, Erjavec told the STA.

Kopač Mrak, who comes from the ranks of the Social Democrats (SD), said today that she would present the reasons to the proposal to Prime Minister Miro Cerar on Thursday ahead of the government session.

The proposal is expected to be put forward to the Economic and Social Council, an industrial relations forum, on Friday.

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