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DESTRICPTION OF MINIMAL WAGES IN SLOVAK REPUBLIC Since year 2000, in Slovak republic assessed new border for minimal wage every year. Changes relevance of minimal wages getting validity on 1 th October every year. Government appointment assess minimal wages: hourly and monthly. Minimal wage for every worked hour is for employees, those working time is minimal 40-ty hours for a week. In Slovakia, development of minimal wage since year 2000 (Chart 1) continuously increased. On 1th of January 2000 minimal monthly wage in Slovak republic was 4 000 Slovak Crowns (cca. 120 EUR), while in the year 2005 it was 6 900  Slovak Crowns (cca. 185 EUR). Currently, in Slovakia minimal wage is 7  600 Slovak Crowns (cca, 230 EUR), which is 90 % increase from the year 2000. Total inflation rate in Slovakia was in those time about 50 %. In a percentage rate of minimal wage toward average gross wage, was in Slovakia in the year 2006 – 41,5 % from minimal wage. It is increase about 1,53 percentage point toward the year 2005 (Chart 2). Table 1: Development of minimal hour and monthly wage in Slovak Crowns in Slovakia, since 2000 – 2006 Minimal monthly Minimal monthly Validity from Minimal hour wage wage (SK) wage (EUR) 01.01.2000 21,6 4000 01.10.2000 23,8 4400 03.10.2001 26,6 4920 01.10.2002 32 5570 01.10.2003 35 6080 01.10.2004 37,4 6500 01.10.2005 39,7 6900 01.10.2006 7600 Resource: Infostat SR Chart 1: Development of minimal monthly wage (in SKK) in Slovakia 8000 7500 7000 6500 6000 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 01 01 03 01 01 0 0 01 . 1. 1. 01 .1 .1 .1 .1 1 1 .1 . 0. 0. 0. 0. 0. 0. 0. 200 200 200 200 200 20 20 20 0 0 1 2 3 04 05 06 Resource: ŠÚ SR Chart 2: Percentage rate of minimal wage % toward average gross wage in Slovakia 45 40 35 30 25 20 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 Resource: ŠÚ SR Table 2: Percentage rate of minimal wage toward average gross wage in Slovakia. % rate minimal and Year Minimal monthly wage Average monthly wage average wage 2000 4400 11430 38,5 2001 4920 12365 39,79 2002 5570 13511 41,23 2003 6080 14365 42,33 2004 6500 15825 41,07 2005 6900 17274 39,94 2006 7600 18324 41,48 According to Eurostat, Slovak republic with minimal monthly wage 183 EUR, belongs to countries with the lowest minimal monthly wage. Belongs to European countries with minimal monthly wages up to 200 EUR were: Bulgaria, Romania, Latvia, Lithuania and Estonia. After 1th of October 2006 (minimal monthly wage increased at the level 6 700 SKK), Slovak republic would probably integrate with highest minimal monthly wage behind Estonia. In the PPS the differences between are softly decreased. European countries with the highest minimal wage in January 2006 belongs: Luxemburg( 1 503 EUR), Ireland (1 293 EUR), Holland (1 273 EUR), Great Britain (1 269 EUR), Belgium (1 234 EUR) and France (1 218 EUR). The lowest minimal wage had according to expects the new entry counties in to the European Union (besides Malta and Slovenia). Between European countries, which had not exactly define minimal wage belong some typical left wing and social countries like: Italian, Sweden, Norway, Finland, Denmark and Germany. Table 3: Minimal monthly wage in chosen countries in January 2006

Countries

Minimal wage in EUR Bulgaria 82 Romania 90 Latvia 129 Lithuania 159 Slovak republic 183 Estonia 192 Poland 234 Hungary 247 Czech republic 261 Turkey 331 Portugal 437 Slovenia 512 Malta 580 Spain 631 Greece 668 USA 753 France 1218 Belgium 1234 Great Britain 1269 Holland 1273 Ireland 1293 Luxemburg 1503 Resource: Eurostat Chart 3: Minimum monthly wage as a proportion of average monthly earnings in industry and services (%) in period 2002-2005. ŠTÁTY 2002 2003 2004 2005 BE Belgium 46,39 CZ Czech Republik 34 35,8 38,81 EE Estonia 30,46 32,39 34,58 ES Spain 36,19 35,56 37,65 IE Ireland 50 47,73 50 LV Latvia 35,2 37,3 39,07 31,27 LT Lithuania 36,87 36,18 38,46 LU Luxemburg 50,36 50,36 49,57 50,73 HU Hungaria 42,1 38,55 40,7 38,15 MT Malt 53,9 51,59 48,95 NL Holland 49,27 47,68 46,14 PL Poland 32,96 33,91 35,06 PT Portugal 43 40,68 40,7 SI Slovenia 45,3 46,31 44,13 SK Slovak republic 32,4 33,97 34,14 UK Great Britain 34,42 34,43 37,89 36,95 BG Bulgaria 39,73 41,43 42,56 RO Romania 31,3 37,3 34,4 US U.S.A 34,45 33,55 32,87 Resource: Eurostat

DESTRICPTION OF MINIMAL WAGES IN SLOVAK REPUBLIC


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