Slovak Labour Code that requires separation of the meal contribution for an employee from the salary of the employee created an artificial meal voucher market and ensured the voucher companies millions in revenue and generous profit margins, which are, at the end of the day, paid by the majority of workers, employers and restaurateurs in Slovakia.
Ever since the start of the financial crisis, Slovakia has been having serious problems with the sustainability of its public finances.
Recent developments have already split even the almighty Troika (ECB, IMF, European Commission) which negotiates conditions for providing loans to bankrupted European economies.
Billions of euros are flying around Europe also this year, and an attentive observer should not miss from whom and to whom they are wandering. Especially, when the bets of Slovak taxpayers are also in play.
One of the major barriers which prevent the labour market from demanding more workforce (thus lowering the unemployment) is the high level of compulsory social contributions.
During the past decade Slovakia used to be called a tiger in the middle of Europe. We have earned this nickname because we implemented transparent tax system with lower rates which in combination with relatively cheap labor attracted many large investors. But big corporations were not the only companies who came here to set up the regional centers or manufacturing facilities. Smaller companies from the neighboring countries were interested as well. Lower taxes were inviting…
