Table 1 Slovenia: Wage policy under general/inter-sectoral collective agreements for private sector employees
Date of agreement | Type of agreement | Features of wage agreement |
|---|---|---|
1995 | Social agreement | Overall objective: maintain level of real wages. |
Quarterly adjustment of base wages by 85% of inflation in the previous quarter. | ||
Additional increase in wages related to productivity | ||
Overall objective: maintain level of real wages. | ||
1996 | Social agreement | Overall objective: maintain level of real wages. |
Quarterly adjustment of base wages by 85% of inflation in the previous quarter. | ||
Additional increase in wages related to productivity. | ||
1997, June | Pay policy agreement for 1997 − 1999 | Quarterly indexation of base wages replaced by annual indexation. |
Base wages to increase by 85% of inflation in previous year. | ||
1999 | Agreement on Incomes Policy for 1999 − 2001 | 1999 − 2000: |
Adjustment of base wages in January by 85% of inflation in previous year. | ||
Additional increase in mid-1999 for price impact of introduction of VAT. | ||
Safeguard clause for additional increase in mid-2000 in the event of higher-than-expected inflation. | ||
2001: | ||
Gradual transition to forward-looking indexation of base wages. | ||
Base wages increased in July 2001 by 92.5% of inflation in first half of year. | ||
Base wages to increase in January 2002 by 90% of projected inflation in second half of 2001 (equivalent to increase of 2.7%) | ||
Safeguard clause for additional increase in the event of higher-than-projected inflation. | ||
2002, June | Pay policy agreement for 2002 − 2003 | Base wages to be adjusted two times a year, based on projected inflation. |
August 2002: Base wages to increase by 4.2%. | ||
December 2002: Base wages to increase by amount that inflation during January-November 2002 exceeds 4.2%. | ||
August 2003: Base wages to increase by 2.5% plus the amount that inflation during January-June 2003 exceeds 2.6%. (The additional increase to be triggered only if actual inflation during January-June exceeds 2.8%). | ||
December 2003: Base wages to increase by the amount that inflation during January-November 2003 exceeds the wage increase awarded in August. | ||
2004, April | General collective agreement for the private sector (GCAPS) for 2004 − 2005 | Increase in base wages to be determined by formula incorporating forecast inflation in Slovenia, forecast inflation in selected EU member states, and forecast tolar-euro exchange rate. The formula resulted in wage increases of 3.2% in 2004 and 2.7% in 2005. |
Additional wage increase by the amount that actual inflation in Slovenia exceeds 3.6% during December 2003 − December 2004 and 2.9% during December 2004 − December 2005. | ||
All workers to receive minimum wage increase of SIT 5,000 in August 2004 and SIT 5,100 in August 2005. | ||
Additional wage increases related to productivity gains possible in sectoral collective agreements, subject to the condition that overall real growth in average wages should lag productivity growth by at least one percentage point. | ||
2005, September | GCAPS | Cancelled by Employers' Associations in anticipation of new framework of collective agreements being negotiated without government participation. |
2006, June | Inter-sectoral collective agreement (CAMPA), July 2006 − December 2007 | Starting wage and minimum base wage to increase by 2% in 2006 and in 2007. |
Further increase in base wage in August 2007 by the amount that actual inflation during December 2005 − December 2006 exceeded the forecast inflation rate of 2.3%. | ||
Social partners can agree on higher than 2% wage increase at the enterprise level, if justified by productivity growth. | ||
2008, May | Intersectoral collective agreement, 2008 − 2009 | No further base wage increases in enterprises that already increased base wage by ≥5.2% in 2007. |
Enterprises which increased base wage by <5.2% in 2007 to increase wages in May 2008 by difference between actual wage increase and 5.2% threshold. | ||
Starting and lowest base wage to to increase by 3.9% in August 2008 and 2.3% in August 2009. | ||
Safeguard clause: Full adjustment in January 2009 for inflation exceeding 4.55% in 2008. Full adjustment in January 2010 for inflation exceeding 2.7% in 2009. |