The Government of the Slovak Republic has approved the historically largest increase in the minimum wage, which will reach €915 per month starting January 1, 2026. This decision came after social partners—representatives of employers and employees—were unable to agree on a new rate. An automatic mechanism has now come into effect, applying for the first time the new, increased rate at 60% of the average wage from two years ago (previously it was 57%).
This significant increase of €99 brings substantial changes to the labor market, affecting both employees and employers. While it represents a major improvement for low-income groups, it poses a challenge for companies in the form of higher wage costs.
Impact on Employees and Allowances
The increase in the minimum wage positively affects thousands of employees earning the least. In addition to the base salary, several allowances linked to it will also rise.
Historic Minimum Wage Increase – Employee Allowances
Watch Out for the Difference in Terms
The increase will affect not only the basic minimum wage but also the six job difficulty levels, which are calculated from the minimum wage using established coefficients.
Minimum Wage Entitlements – Minimum Wage Grades for 2026
Impact on Wage Entitlements and Companies
Higher Wage Costs: Companies need to account for significantly increased employee costs, which can impact their financial performance and the prices of goods or services. The minimum wage affects not only those who previously earned it but also sets a trend for overall compensation, pushing all salaries upward. As experts, we recommend a full review of your wage structure. An increase in the lowest wages can lead to decreased motivation among employees whose salaries are only slightly above the minimum wage. Employers should therefore reassess and fairly adjust their entire compensation policy to retain qualified staff.
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This could ultimately create pressure to raise wages across the entire economy, potentially contributing to inflationary pressures.
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The increase of the minimum wage to €915 is a significant step toward improving the living standards of low-income groups, but it also poses a challenge for employers who must adapt to the new conditions. Successful transition requires timely and well-thought-out preparation. If you are unsure how to set your wage policy or are looking for qualified employees, contact us—at Talent Solutions, we are ready to lend a helping hand.
