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OECD: Slovakia Should Introduce Minimum Wage According to Region
Thursday 25 November 2010 Zoom in | Print page
Bratislava, November 25 (TASR) - Slovakia should introduce various minimum wage levels according to region, Organisation for Economic Co-Operation and Development (OECD) General Secretary Angel Gurria said at the presentation of an OECD report on Thursday.
"We have a certain minimum wage system here, but it isn't generating enough jobs. Then, of course, instead of becoming a means of protecting workers, it's becoming a problem of rigidity in the economy. What needs to be done is to think more about differentiating the minimum wage," said Gurria.
According to Finance Minister Ivan Miklos (SDKU-DS), the bad situation on Slovakia's labour market could be improved by the introduction of a labour mid-market. "This means scrapping the minimum wage for the long-term unemployed. Everyone out of job for more than one year could be employed for less than the minimum wage, with employees still also receiving social benefits from the state. As a result, the incomes of these people would increase, they would have jobs, and the state wouldn't pay a single euro more," claimed Miklos.
Gurria thinks that Slovakia should also reform the first pension pillar. According to him, young people should be obliged to join the second pension pillar. He also said that there is room for Slovakia to improve the efficiency of drawing European Funds and VAT collection.
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