The statutory minimum wage in Slovenia has been set at €1,253.90 gross (€902 net) a month this year, after being adjusted for a 4.2% rise in the annual inflation rate last year.

The new minimum wage was announced by Labour Minister Luka Mesec on 23 January following talks with employers and trade unions. He opted for the minimum indexation required by law.

Citing economic uncertainty, employers had called for the minimum possible increase, while trade unions had proposed an increase of at least 7.5%.

Under law, the minimum wage is indexed at least to consumer price inflation once a year, but other factors such as pay trends, GDP growth, the minimum cost of living are also taken into account.

Mesec noted that in 2018, the National Assembly passed a proposal sponsored by his party the Left which broadened the definition of minimum wage, as a result of which the minimum wage increased by nearly 43% in the past five years. During the same time average pay went up by 30%.

He argued that in the future more attention should be devoted to efforts to raise other wages as well, as many pay brackets in the public and private sectors are below the minimum wage level.

Responding to the minimum wage increase, the country's largest trade union confederation called it a wasted opportunity to ensure a higher increase amid rising costs of living that outpace inflation.

Nevertheless, the trade unions welcomed the fact that the government abandoned the initial idea to freeze the minimum wage.

Meanwhile, employers are happy that the government decided to agree with their proposal on a 4.2% rise.

"Any departure from this would be unacceptable," CEO of the Chamber of Commerce and Industry Mitja Gorenšček said, pointing to the economic situation and government deficit.