Page 57

GRANT

journal

ISSN 1805-062X, 1805-0638 (online), ETTN 072-11-00002-09-4

EUROPEAN GRANT PROJECTS | RESULTS | RESEARCH & DEVELOPMENT | SCIENCE

declining pressure on public finances in the area of volume of
unemployment allowances paid out or higher tax revenues. From the
broader macro viewpoint higher employment, together with rising
wages, enabled the end household consumer to persist in the
position of the driving engine of economic growth (Morvay et al.,

2018; Přívara, 2019).

Table 1 Development of the labour market parameters between
2017-2018

2017

2018

Minimum wage (€)

435

480

Average wage (€)

954

1013

Inflation (%)

1.31

2.51

Number of unemployed (thous.)

224

179.5

Unemployment (%)

8.1

6.6

Employment rate (%)

71.1

72.4

Source: own processing based on the Statistical Office of the Slovak
Republic

A wage is one of the most important elements of incomes for
citizens of Slovakia and also makes up the largest portion of costs
for employers. From the viewpoint of each employee, a wage is an
important factor, because it has a significant impact on his
prosperity and quality of life. The position of employees in a
company and their possibilities for personal growth at work and in
the social sphere is determined by a wage. Higher wages depend on
many factors, such as education achieved, practice, job position,
work experience, work tasks, age, sex and the sector and region
where we work. Average wage is one of the most monitored
statistical indicators. The Statistical Office each year publishes data
on the average wage for the whole economy of the Slovak Republic
as well as summaries or in parts divided by various criteria (e.g.
according to sector, education, regions, etc.). The concept of an
average wage means the arithmetic average of all wages in Slovakia.
It typically applies that 70% of people earn less than the average
wage in the national economy (the portal: minimálnamzda.sk,
2019). Wage development is caused by the oscillation of various
parameters of economic development. Whether this is a change in
the rate of inflation, GDP or unemployment, these facts are always
reflected in the level of wages, which increased during each year of
the monitored period.

Wage development in Slovakia in the monitored period between
2008-2018 is shown in the following table.

Table 2 Development of average monthly wage in the Slovak
Republic between 2008-2018

Year

Average wage (€)

Year-on-year

change (€)

Year-on-

year change

(%)

2008

723

7.47

2009

745

2.95

2010

769

3.12

2011

786

2.16

2012

805

2.36

2013

824

2.31

2014

858

3.96

2015

883

2.83

2016

912

3.18

2017

954

4.4

2018

1013

5.82

Source: own processing based on the Statistical Office of the Slovak
Republic

Table 2 shows that the overall trend of average monthly wage
development during the past 10 years has shown a growing trend. A
growth in wages was recorded each year, namely ranging from
2.16% to 7.47% (17 € - 54 €). In 2008 we see the largest percentage
year-on-year growth in the average monthly wage for the entire
period, specifically 7.47% (54 €). From 2009 a notable decline
appears in the year-on-year change in wages, by a percentage value
of 2.95% (22 €); this was caused mainly by the global financial
crisis, which had an unfavourable impact on the overall performance
of the economy. In 2011 the year-on-year change in wages showed
its lowest value, only 2.16% (17 €). This period also witnessed a
slowing of economic growth even though employment was rising;
the slower growth in the economy was caused by a slowing growth
in work productivity. A positive change took place in 2014 and the
following years, when the average monthly wage showed a climbing
tendency. In 2018 the average monthly wage crossed the 1,000 €
mark for the first time.

In 2018, we see an effort to make wages more attractive with a 13th
and 14th monthly payment, which permitted the employer to choose
this form of motivation for employees as a benefit without
increasing the basic wage. According to economists (Štefanides,
2019) the estimated average monthly wage for 2019 is 1,063 €,
which will represent 5.82% growth versus 2018. We can assume
that lower growth may also be caused by increasing surcharges for
work through the weekend, holidays and at night, which from May
2019 came into the 2nd phase of growth.

Mandatory contributions for recreation are also a newly introduced
benefit for employees (Grófová, 2019). The average wage in
Slovakia for the past 3 years achieved stronger growth, but Slovakia
still remains among the lower rungs on the ladder of all EU
countries. Only 6 states in the European Union have a lower average
wage. Romanians and Bulgarians, now traditionally, earn the least
(portal minimálnamzda.sk, 2019).

A minimum wage is the lowest work income by which an employee
is ensured a living standard at a minimally acknowledged social
level. The government of the Slovak Republic each year sets the
amount of the minimum wage with a resolution in euro per worked
hour or per month. For 2018 a legal minimum wage was stipulated
by law in 22 out of 28 EU Member States, with the highest legally
stipulated minimum wage in Luxembourg and the lowest in
Bulgaria. Countries such as Finland, Sweden, Denmark, Italy,
Austria and Cyprus do not have a minimum wage guaranteed by law
(Eurostat, 2019). Opinions vary on the importance and meaning of a
minimum wage in economy. On one hand, a minimum wage
guarantees a working person the certainty, that their income will not
fall below the set level; however, on the other hand, it makes the
labour market less flexible. At present, the minimum wage is set
nationwide, that is, it does not take into consideration the differences
between the sexes, professions, sectors in which employees work or
even geographical aspects. When adjusting the amount of the
monthly minimum wage, the overall economic and social situation
in the country is taken into account over the two calendar years
preceding the calendar year for which the minimum wage is to be
set, especially the development of employment, consumer prices,
the life minimum (Act No. 663/2007 Coll. on the Minimum Wage)
and average monthly wages in the Slovak economy (Rievajová,
Pogány, 2013).

When determining the amount of the monthly minimum wage the
assumption is that the relevant social partners (representatives of
employers and unions) will agree on its amount. If the social
partners do not agree on the amount of the minimum wage, then the
Ministry of Labour, Social Affairs and Family proposes its amount.

Vol. 9, Issue 1