Minimum Salary Level Increased

The situation

Effective January 1, 2019, the minimum monthly gross salary for foreign workers in Slovenia has increased to EUR 886.63, up 5.2 percent from last year.

A closer look

• Existing employees. Employers of foreign nationals must increase the foreign national’s minimum salary to comply with the new rule.
• Initial and renewal applications. Employers of foreign nationals seeking to obtain or renew work authorization on or after January 1, 2019 must increase the foreign national’s salary to comply with the new rule. Immigration applications that do not meet the minimum salary may be refused.
• Pending applications. Employers of foreign nationals with pending work authorization applications as of January 1, 2019 must increase the foreign national’s salary to comply with the new rule. Immigration applications that do not meet the minimum salary may be refused.

Reminders on other requirements

• Local salary rate. As before, salaries must also be comparable to a local worker in the same position, per the applicable collective bargaining agreement.
• Benefits and allowances. As before, benefits and allowances may be included in the minimum salary calculation if they are specified in the employment contract or assignment letter, guaranteed and fixed, paid through payroll, taxable, paid monthly, and not paid in kind. This includes obligatory insurance and pension contributions. Payment increases due to overtime or overnight work, work on Sundays and holidays cannot be counted towards the salary requirement. 

Background

In Slovenia, the minimum salary rate is adjusted annually based on the inflation rate, if applicable, usually at the rate of 1-2%. The present minimum salary increase, however, is the result of legislative reforms of minimum salary levels, which have been the subject of recent political discourse following the June 2018 general election.

Looking ahead

The legislative reform sets out a gradual increase of minimum salary levels until 2021, when the minimum salary will be calculated annually based on a formula involving minimum monthly living expenses. In the interim period, the minimum salary level is expected to increase again in 2020 to EUR 940.58 gross per month.

Fragomen will report on related changes.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].