Minimum wage from January 1, 2025
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April 14, 2025
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From January 1, 2025, Slovakia will increase minimum wage on 816 euros per month, which represents an increase of 66 euros compared to the previous year. This increase will affect not only the lowest-earning employees, but also the amount of bonuses for working at night, on weekends and holidays.
How was the new minimum wage determined?
Since representatives of employers and employees did not agree on the minimum wage for 2025, the so-called. automatic mechanism. This mechanism sets the minimum wage as 57 % of the average wage in the national economy for the previous year. Based on the average wage for 2023, which was 1,430 euros, the minimum wage for 2025 was set at 816 euros.
Hourly minimum wage and levels of work intensity
In addition to the monthly salary, there will also be an increase hourly minimum wage, which will be equal to 1 January 2025 4.689655 euros for employees with a 40-hour workweek. That's an increase of 0.38 euros compared to 2024.
The Labor Code defines six levels of work intensity, which take into account the complexity, responsibility and effort of the work performed. Each level has an assigned coefficient by which the basic minimum wage is multiplied. The result is the minimum wage for a given level of difficulty:
Characteristics of levels of work intensity
1st degree: Auxiliary and handling work; requires basic education or apprenticeship.
2nd degree: Routine maintenance work; requires apprenticeship or secondary vocational education.
3rd degree: Separate, less complex agendas; requires a complete secondary education with a high school diploma.
4th grade: Professional agendas or partial conceptual works; requires higher professional education or a bachelor's degree.
5th grade: Specialized systems and conceptual work; requires a university education with a master's degree.
6th grade: Creative solution of complex problems; requires doctoral studies.
Impact on surcharges and levies
The increase in the minimum wage will also affect the amount extra pay for working at night, on weekends and holidays, as these are linked to the minimum wage. For example, the night work bonus will be at least 1,876 euros per hour.
When it comes to net salary, employees must take into account contributions and taxes. The following are deducted from the gross salary: 13,4 % for social and health insurance. The employer pays additional 36,2 %. After deducting contributions and taxes in the amount of 19 % The employee is left with a net salary that is lower than the gross salary.
The reality of a higher minimum wage
Despite the increase in the minimum wage, Slovakia still ranks among the EU countries with the lowest minimum wage. According to research by the WageIndicator Foundation from the Netherlands, the current minimum wage not enough for a decent life. Moreover, according to the European Investment Centre and the MR Štefánik Conservative Institute, the total tax and contribution burden reaches up to 63,07 % wage costs per average employee.
Conclusion
The increase in the minimum wage from January 1, 2025 brings with it several positive changes for employees, including higher bonuses. However, the high tax and contribution burden continues to affect employees' net income, which raises discussions about the need for a comprehensive reform of the tax system.