By: Vida Kocjan
Last week, the government approved a proposal for a new public sector wage law, which seems to focus mainly on adjustments and higher salaries for select officials. Negotiations on salary classifications are reportedly still ongoing, and the salaries of MPs, government officials, and other functionaries will be adjusted with a delay, explained Finance Minister Klemen Boštjančič.
The total cost of this wage reform, if it can even be called that, is estimated at 1.4 billion euros. This amount will be distributed over the next four years, approximately 350 million euros annually, said Boštjančič. Previously, public sector wage adjustments were not supposed to exceed 850 million euros. Former Minister of Public Administration Sanja Ajanović Hovnik was strictly instructed not to exceed this amount. Now, that figure has increased by 65%. The initial proposals presented by Ajanović Hovnik in February 2023 remain unchanged, with the highest salary bracket set at level 67.
According to current projections, the biggest wage increases will go to officials, mayors, judges, and MPs, with the absolute top earner being the president of the Commission for the Prevention of Corruption, currently Robert Šumi.
Finance Minister Boštjančič, who leads the government’s negotiations with public sector unions, said that the government proposes delaying salary increases for government officials – including ministers, state secretaries, and officials from the government’s general secretariat, as well as MPs and members of the National Council – until the next National Assembly is convened.
Meanwhile, the salaries of judicial and other officials, such as the president, mayors, the head of the anti-corruption commission, and the ombudsman, will be adjusted gradually, similarly to how public servants’ salaries are adjusted.
The coalition emphasises that under the new wage system, no public servant will have a base salary below the minimum wage. However, it is worth noting that currently, no employee receives less than the minimum wage, as the government covers the difference. The government also claims that the lowest-paid public servants will receive higher wages first. Salaries will be adjusted annually in line with inflation.
Higher holiday allowance
The government and unions have already agreed on a higher vacation allowance, which will be 5% higher than the minimum wage in 2025 and 10% higher in 2026. In both years, the allowance will be paid in advance, in March with the February salary.
However, the work is not yet finished, and it is too early to estimate how much each public servant will receive, as key figures are still being kept under wraps by Boštjančič. He said that final salary increases will be determined through further negotiations in salary brackets. “We will provide concrete numbers then,” he said, adding that more than 95% of the work has already been agreed upon.
Boštjančič explained that they still need to finalise collective agreements for the public sector, which should be signed in October, followed by a formal signing in November. Public servants are expected to feel the first effects of the new wage law with their January pay checks in early February 2025. The transition to the new wage scale will be gradual, lasting until 2028, with officials seeing the biggest increases.
Government secrecy and delays
Although government negotiators have not yet revealed detailed information about new base salaries, some figures have already leaked. The exact salary for each public servant will only be known once negotiations are finalised, and collective agreements are signed. The signing deadline is November 8th, and the negotiations will determine the classification of job positions on the new wage scale, which is crucial for public servants. This means that things can still change.
Wage ratio of 1 to 7
The new wage scale is expected to come into effect at the start of the new year. A key change is that the lowest base salary will be set at the level of the minimum wage (currently 1,254 euros gross), and the ratio between the lowest and highest salaries will be 1 to 7. The highest wage bracket will now be level 67, with a gross base salary of 8,821 euros. The highest earners will include President Nataša Pirc Musar, Prime Minister Robert Golob, and National Assembly President Urška Klakočar Zupančič, whose salaries will increase by 45%. The President of the Supreme Court (Miodrag Đorđević) and the President of the Constitutional Court (Matej Accetto) will also be placed in the highest salary grade.
Smaller differences in salary grades, modified promotions, additional leave
The difference between salary grades will be reduced to three percent instead of four. The increase will be gradual, expected in six instalments, twice a year, at increments of 12% or 15%. It will begin on January 1st, 2025, and conclude on January 1st, 2028. Those receiving smaller raises will see the full increase before 2028.
A new aspect introduced by the proposed law is slower advancement for public servants. Until now, employees with excellent performance evaluations advanced by two salary grades every three years. In the best-case scenario, they could achieve a ten-grade jump in fifteen years. Under the new system, this period will be extended to thirty years, with advancement limited to one salary grade every two years at the beginning of a career, with even larger intervals later.
Regarding annual leave, a minor change will grant an additional five days of leave, but only for public servants over the age of 55 after the transition period.
Lowest-paid employees to be at a disadvantage, some effects only on paper
The quickest impact of the new rules will be seen by those in salary grades up to 25. However, for those currently in grades 1 to 14, the effect on take-home pay (net salary) will mostly be symbolic. Currently, those in grades up to 14 receive a base salary that is equal to or below the minimum wage, supplemented by top-ups to reach the minimum wage. Under the new system, the base salary for the first grade will match the minimum wage, making the impact minimal due to the existing top-ups. In other words, net salaries for public sector employees in salary grades up to 14 will not increase.
Someone who currently has a base salary equivalent to the average wage and is in the 42nd salary grade will see an approximate €100 increase in salary under the new system.
Salary adjustment for inflation
The law foresees salary adjustments in line with inflation starting in 2026, but only if inflation exceeds 1.8%, and only for the difference between the actual inflation rate from the previous year and 1.8%. In 2027, the threshold for partial inflation adjustment will be 1.6%, and in 2028, it will be 1%. Actual salary adjustments in line with inflation will begin only after 2028.
More of a salary adjustment for some, rather than a reform
According to media reports that unofficially obtained documents from the negotiation group, the highest, 67th salary grade will include the President of the Republic, the Speaker of the National Assembly, and the Prime Minister, as well as the President of the Supreme Court. Their base salary will increase by 45%. Following them are ministers, whose salaries will rise by 38% to 41%, bringing their base salaries between €7,609 and €8,073.
Members of Parliament will see a 45% to 50% increase in their base salaries, which will range from €6,187 to €7,837. The base salary for higher-level judges will range from €6,007 to €6,373, reflecting a 56% to 59% increase.
There will also be a significant increase for district and local judges, with some seeing a 72% salary hike. Their base salaries will range from €5,832 to €6,187 for district judges and from €5,031 to €5,497 for local judges.
The largest salary increase, at 76%, will go to the President of the Commission for the Prevention of Corruption, whose base salary will rise from €3,955 to €6,963.
The smallest change will affect the President of the Court of Audit of the Republic of Slovenia, whose base salary will increase by 38%, from €5,854 to €8,072.
High salaries for mayors of Ljubljana and Maribor
The base salary for the Mayor of Ljubljana will be €8,072, and for the Mayor of Maribor, it will be €7,609. Zoran Janković, the Mayor of Ljubljana, will see a 68% increase, while Saša Arsenovič, the Mayor of Maribor, will receive a 71% raise. Salaries for other mayors will be determined based on the population of their municipality, ranging from €4,469 for the smallest to €6,963 for larger municipalities. More details can be found in the table, which we summarise from the newspaper Večer.
Key points from the new salary law
- The ratio between the lowest and highest salary grades will be 1:7.
- Salaries will range from this year’s minimum wage of €1,253.90 gross to €8,821.04 gross in the 67th salary grade.
- The difference between salary grades will now be 3%, down from the current 4%.
- Some officials will receive several thousand euros more in base (starting) salary than before.
In addition to the base salary, all other allowances, such as those for work experience, must be added, so the final amounts could be significantly higher than the stated starting figures.
Salaries for officials under the new system – massive increases
- Prime Minister (Robert Golob): €8,821 + 45%
- President of the Republic (Nataša Pirc Musar): €8,821 + 45%
- Speaker of the National Assembly (Urška Klakočar Zupančič): €8,821 + 45%
- Mayor of Ljubljana (Zoran Janković): €8,072 + 68%
- President of the Commission for the Prevention of Corruption (Robert Šumi): €6,963 + 76%
- President of the Supreme Court (Miodrag Đorđević): €8,821 + 14%
- President of the Constitutional Court (Matej Acetto): €8,821 + 35%
The base salaries are shown in gross amounts and in euros. The salary increases for government officials are expected to be gradual, only coming into effect after the new National Assembly is convened.
Comparison with the Janša government’s proposed reform
The total effect of the entire salary reform is estimated at €1.4 billion over four years for around 200,000 employees. How does this compare with the reform proposed during the Janez Janša government, which projected €800 million per year for 900,000 employees? Golob’s government has reduced wages for everyone (through changes to the income tax law) and is now dramatically increasing wages for itself, judges, and officials. Let’s recall that when the Janša government wanted to raise wages for everyone, the Levica party populistically claimed: “The government is not writing a tax reform for you, but for the rich!” Now, they have increased salaries for officials, judges, and mayors by over 50%. In fact, their government is working for the wealthy, as economist Štefan Šumah recently commented on the latest developments.