UPDATE: Slovenia has just announced an unprecedented law granting every worker a tax-free Christmas bonus of €639 (£560), marking a significant financial boost just in time for the holidays. Prime Minister Robert Golob introduced this plan to parliament, which was swiftly approved, promising to impact approximately one million workers in the country.
The announcement comes ahead of the holiday season, potentially enhancing Golob’s re-election prospects in March 2024. This bonus, equivalent to half of the monthly minimum wage, is expected to cost the government around €600 million. The payment must be processed by December 18, with exceptions for companies facing cash flow issues, allowing them until the end of March.
While the initiative has garnered support from the public, strong opposition exists among employers. A recent poll from the Chamber of Crafts and Entrepreneurship revealed that up to 91 percent of employers oppose the mandatory payment, citing affordability concerns. The European Commission has also raised alarms, warning of potential breaches of fiscal rules due to this significant financial giveaway.
“It is clear as day that this is a pre-election sweetener,”
stated Jozef Horvat, an MP in the New Slovenia Party, highlighting the political motivations behind the bonus.
Workers in Slovenia are no strangers to holiday bonuses, having received summer bonuses known as the 13th month’s pay. This new winter bonus, when combined with existing summer bonuses, will total around €2,000 (£1,753) for workers, a significant amount during the festive season.
Andrej Zorko, head of ZSSS – Slovenia’s largest trade union association, defended the bonus, emphasizing the hard work of employees throughout the year. “People work hard all year, and it’s fair that some of that profit goes to them, too,” he remarked.
Despite the backlash, some employers, like travel agency owner Peter Bruncic from Maribor, are in favor of the tax-free status for the bonus. “I have three employees and have been giving Christmas bonuses for years,” he explained. “While I support this idea, many medium-sized companies may struggle under the new regulation.”
As the countdown to the holiday season begins, the financial landscape in Slovenia is tense, balancing the needs of workers with the concerns of employers. The political implications of this bonus could significantly influence the upcoming elections, with Golob’s government currently trailing in approval ratings against the opposition party led by Ivan Jansa.
The urgency of this situation is palpable. With just days until the payment deadline, all eyes are on Slovenia as it navigates the complexities of economic recovery, public sentiment, and impending electoral challenges.
