Income distribution

The National Assembly has passed a law designed to reduce the impact of the annual increase in the minimum wage on households' creditworthiness after the latest increase rendered much of the population ineligible for a mortgage.

With the new increase in the minimum wage to 780 euros gross and the drop in unemployment, a view across private sector payrolls in 2023 would show that about half of the country's workers will be paid gross earnings of €700-1,000 - i.e. up to €820 euros net.

Thousands of protesters filled downtown Lisbon on March 18 to demand higher wages and pensions, as well as government intervention to cap soaring food prices they say are strangling already tight budgets.

Finally, the parliament decided that the minimum wage should be 50% of the national average.

Walmart announced on Jan. 24 it will again raise pay for hourly staff, an indication of persistent tightness in the labor market for front-line employees despite layoffs in the tech sector.

The retail giant, the biggest private employer in the United States, is boosting the pay range at U.S. stores to between $14 and $19 an hour from the prior $12 to $18 an hour.

Slovenian banks are sounding the alarm and urging the central bank to ease lending conditions after a significant increase in the minimum wage and new capital requirements have rendered much of the population ineligible for a mortgage.

The statutory minimum wage in Slovenia this year has been set at €878 net a month, €100 more than the year before in the most substantial rise in a decade. There are concerns the hike will increase pressure for other wages to be raised as well and thus fuel inflation further.

Labour and Social Affairs Minister Kostis Hatzidakis on Tuesday announced that he intends to table an amendment in Parliament in the coming days on the timetable of the deliberations with the social partners and experts regarding the minimum wage.

The government is examining the prospect of raising the minimum monthly wage to 780 euros from the current €713 level to offset rising inflation. The decision is expected to be made within the first fortnight of March, at the height of the pre-election period.

An increase of between 5.5% and 9.5% is expected to be given to the minimum wage on April 1st after the completion of the prescribed procedure for determining the amount of the wages.

According to information, the new minimum wage will be over 751 euros (an increase of 5.5%), while in the most optimistic scenario it will reach close to 780 euros (an increase of 9.5%).