News from Slovakia

• Rating of Slovakia

On Friday, August 12, Fitch Ratings affirmed Slovakia a long-term rating at A +. The agency as the main positives considers in its credit rating report especially the attractiveness of Slovakia for foreign investors, a stable banking system and membership in the eurozone.

Within 2018, Fitch expects Slovakia’s economic growth at over 3%  annually, which will be driven mainly by domestic demand thanks to an improving labor market development.

The agency also expects Slovakia’s fiscal position will improve. There will be a reduction of the government deficit to 1.6% of GDP in 2018 mainly due to an increase in tax revenues as a result of rapid economic growth. With the decline in public finances and in combination with economic growth expected the reduction of public debt shall be realized.

• Minimum wage in Slovakia in 2017

The minimum wage in January 2017 shall increase from the current 405 to 435 euros. The Government approved the proposal of the Ministry of Labour, Social Affairs and Family, as social partners at its height again agreed. The lowest wage shall increase by € 30 per month, which represents a net increase of version 19.10 of the euro, ie at 374.11 euro. Hourly minimum wage will increase from 2.328 to 2.50.

In recent years the Ministry proposed raising the minimum wage in oder to exceede the poverty line calculated by the European Statistical Office. Increase to € 435 will ensure that an individual moves away from the boundary by about 27 euros. Recommendations of the European Committee of Social Rights, however, is that the net minimum wage shall represent at least 60% of the net average monthly wage. Next year the proportion will be at 52%. We remain ready to increase the lowest wages to make people more worthwhile work than receive welfare.

Resource: www.mfsr.sk

www.employment.gov.sk