When we talk about wages in Slovakia, we refer to gross wage. From an economic point of view, however, it is a fictitious value created by accountants. It represents an arbitrarily set point between the two key values: net wage and labor costs.
Institute of Economic and Social Studies (INESS) introduced the Bureaucracy Index in Slovakia in 2016 aiming to draw the attention to the amount of red tape a small entrepreneur has to comply with on a daily basis.
Taxation is an involuntary payment levied on various entities in order to finance the state budget1. Clearly, the tax burden is heavily influenced by the philosophy of the role of the state in the public life, as well as quantity and quality of public services rendered.
The majority of people around the world complain about taxes they have to pay. However, in the case of Poland, it is not only the size of the tax burden that poses a problem, but also complicated and unclear rules in place.
The current Vice-President of the European Commission Mr. Timmermans openly says that a minimum wage of 60% of the median wage should be paid in the EU. In addition, the European Commission launched consultations with trade unions and employers on EU minimum wage rules in January.
Many labor market regulations were created with large mid-20th century manufacturing plants in mind – which is the spirit of the Polish Labor Code of 1974. However, along with the process of industrial automation as well as the growth of employment in services, the economic reality has changed.
The football business shows well how underestimating a well-performing and efficient player can bring other costs. The player may either simply leave for another team, or, if restricted with a contract – underperform to the level only required by the payment.
Wage debates are always heated, no matter if it is an employee asking their boss for a rise, or union negotiations. Anyway, in the past year or two, the wage question became one of the leading topics of public debate in Slovakia.
Prime Minister Jüri Ratas (Centre) has said that he does not have any red lines or issues on which it’s not possible to compromise. The fact that it’s possible to compromise on truly anything, including a lack of political responsibility, is confirmed by the actions of the current government on a weekly basis.