Slovenian Prime Minister Miro Cerar has backed a rise in the minimum wage for 2018 above the inflation rate which is the minimum set down by law, Slovenian Press Agency (STA) reported on January 22.

Slovenia is due to hold parliamentary elections in the first half of this year, and Cerar’s Modern Centre Party will be seeking reelection. 

Cerar told MPs that the economy is in good shape and thus can take more than the harmonisation with inflation as demanded by law, STA reported.

Under the law on the minimum wage, the wage is set for the year by the minister in charge after consulting with social partners. Labour Minister Anja Kopač Mrak suggested it could be 4.7%, STA reported.

In 2017, Slovenia’s annual inflation was 1.7%. The largest upward impact came from higher prices of food and petroleum products. Goods prices went up by 1.9% and service prices by 1.3%.

Even though Slovenia is the most developed country in the Western Balkans with the highest salaries in the region, its public sector workers often demand higher pay. Average salaries in the country are expected to increase in the coming months and thus contribute to domestic consumption and further economic growth.

The average monthly gross wage in Slovenia amounted to €1,756.95 in November, increasing 8.4% in nominal terms and 9.1% in real terms compared to October, the statistical office announced on January 15. The net wage in Slovenia totalled €1,151.76 in November. In annual terms, gross wages went up by 4.1% and net by 5.9%.