AZZZ: We Get Good Intent, But Economy Must Stand on Genuine Foundations

Bratislava, 18 August (TASR) – Employers from the Federation of Employer Unions and Associations (AZZZ) have voiced opposition to another increase in the minimum wage. „We also point out that Slovakia is the only country in Europe where the minimum wage is linked not only to bonuses, but also to job difficulty grades. This combination is extremely burdensome for the business environment,” said Roman Karlubik, Vice-president of AZZZ, in a post on social media. „At a time when further consolidation measures lie ahead and the Slovak economy is stagnating, another increase in the minimum wage under the currently valid mechanism is not sustainable. Especially small and medium-sized enterprises, which form the backbone of employment in Slovakia, will have to face increased costs,” Karlubik added. According to the approved automatic mechanism, the minimum wage is set to rise to €915 as of January, even without an agreement among social partners. This marks an increase of €99 compared to the current rate. AZZZ stated that Slovakia has for years been “covering itself with a blanket it cannot afford,” pointing to a growing gap between productivity growth and rising minimum wages. The association acknowledged that this is a socially sensitive issue but warned that, without real economic backing, such a decision could lead to further inflation and a decline in competitiveness. „We therefore call for a responsible approach. The economy cannot operate long-term on good intentions without a real foundation,” Karlubik concluded. mf