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The Average Wage Increased in 2020 Compared to the Previous Year, Despite Deflation and the Coronavirus Epidemic

The average monthly gross and net wages of the employees, in terms of natural persons, were slightly higher in 2020, amounting to 1,034 euros gross, which amounts to 717.38 euros net, but in real terms, it increased by one percent. The salaries of the employees of natural persons, are as much as 41 percent lower than the average Slovenian salary, which has constantly been rising since Slovenia joined the European Union. Namely, its growth since 2004 amounts to around 60 percent. Despite the coronavirus epidemic, similarly to the number of employees in terms of natural persons, the average salary also rose in 2020, by five percent.

The average monthly gross earnings of employees of registered natural persons (this group mainly includes sole proprietors) for the year 2020 amounted to 1,034.33 euros, which is higher than the gross earnings for 2019, namely by 0.9 percent in nominal terms and 1.9 percent in real terms. The average monthly net salary of these employees for 2020 amounted to 717.38 euros and was nominally higher by 0.8 percent, but in real terms by 0.9 percent, than the net salary for 2019, according to the Statistical Office of the Republic of Slovenia. The wages of natural persons in the last quarter were slightly lower than in the third quarter, which could be due to the closure of activities.

The average monthly gross earnings of persons in the employment of registered natural persons for 2020 were the highest in mining and quarrying (1,493.49 euros). Compared to the salary for 2019, the average monthly gross salary of employees of registered natural persons for 2020 increased the most in the activities of electricity, gas and steam supply (by 11.1 percent), and then in the activity of mining (by eleven percent) and decreased the most in the hospitality industry (by 9.5 percent) – mainly due to the measures related to the COVID-19 epidemic.

However, the salaries of employees of natural persons are lower than the average in Slovenia, which amounts to 1,314 euros net or 2,021.21 euros gross. The average salary thus includes employees in the private (natural and legal persons) and public sectors. The average salary in the third quarter was also slightly higher (1,324.7 euros) than in the last quarter (1,314.62 euros).

The average Slovenian salary also increased in 2020, amounting to 1,856.20 euros gross, which amounts to 1,208.65 euros net. The average salary was 5.8 percent higher than in 2019, while in Slovenia, we had deflation, which means that wages were rising, while prices were falling, on average. However, average wages have risen by about 60 percent since joining the EU in 2004.

Slovenia’s average salary is rising, but it has not yet reached the EU average
In terms of the average hourly wage (19.1 euros), Slovenia ranks somewhere in the middle among the EU members, between Spain (21.8 euros) and Cyprus (17.5 euros), while we are still below the European average (27.7 euros). The highest wages are recorded in countries with a higher standard of living, such as 44.7 euros in Denmark, 41.6 euros in Luxembourg, and 40.5 euros in Belgium. The lowest salaries are recorded in Bulgaria (6 euros), Romania (7.7 euros) and Lithuania (9.4 euros).

Slovenia among the countries with the smallest gender pay gap
Slovenia ranks among the countries where gender differences in terms of wages are among the lowest. According to a survey conducted by Eurostat, men in Slovenia have a 7.9 percent higher salary than women, while this percentage is twice as high on average in the Eu (14.1 percent). The smallest gender pay gaps can be found in Luxembourg (1.3 percent), Romania (3.3 percent) and Italy (4.7 percent). The highest differences are observed in Estonia (21.7 percent), Latvia (21.2 percent) and Austria (19.9 percent).

Prime Minister Janez Janša also commented on this on International Women’s Day, writing: “The natural roles of both sexes in Slovenia, which are partially different, are largely not an obstacle for equality in our society. We are well above the EU average. In some cases, however, there is still room for improvement. #March8th”

The European Commission wants to reduce the gender pay gap in the future, which depends to a large extent on the national legislation governing the labour market. The European Commission believes that it can make a significant contribution in this matter, as its President, Ursula von der Leyen, has also committed to reducing disparities, making the reduction of disparities in pay one of her priorities.

Sara Rančigaj

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