Minimum wage is the minimum amount, determent by law or collective agreements, that a worker with concluded employment contract or in employment relationship receives for the work performed. Work is supposed to be a way out of poverty, but unfortunately this is not always the case. In most EU Member States minimum wages are set below the “at-risk-of-poverty threshold” and do not allow workers a decent standard of living. An adequate minimum wage should provide fair living and working conditions for workers and prevent in-work poverty. In addition to inadequate levels of minimum wages, due to numerous exceptions in legislations and insufficient coverage by collective agreements, a large share of workers are not entitled to minimum wage. For these reasons the European Commission decided to take action and presented in October 2020 a proposal for a Directive on adequate minimum wages in the EU. As the difference in social and economic development between the Member States is large, the question arises as to how, on the basis of the proposed directive, the minimum wage will be set and what consequences the proposed directive will have on Slovenian regulation.
After analyzing the proposal for a directive, other legal documents and the expert literature, it has been concluded that Slovenian regulation is largely in line with the requirements of the proposal for a directive, but some adjustment would have to be made. At the time of the introduction of the directive, the minimum wage would continue to be set either by law or by collective agreements. However, with the introduction of the directive, Member States would need to take appropriate measures to ensure that the setting of the minimum wage is adequate and predictable.
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