The Government is expecting that the increase of the minimum wage and the guaranteed minimum wage of skilled workers will lead to rising wages in other wage categories, Minister of State for the Labour Market and Vocational Education told public news channel M1.

A wage growth trend has been in place for three years now, and wages in real terms have been rising.

It is in the interest of employers to hike wages, as this is the only way to keep their skilled and motivated workers, he noted.

By the end of the current two-year wage increase programme, the minimum wage will have risen by 88 percent since 2010, and the guaranteed minimum wage may even double.

A significant payroll tax cut constitutes a part of the agreement: payroll taxes are to be reduced by 5 percentage points next year and by another 2 percentage points as of 1 January 2018.

Speaking of SMEs, the Minister of State pointed out that the majority of these companies have managed to find the means for wage hikes. Improving efficiency and productivity may help cover the costs of higher wages; otherwise employees may leave for better salaries.

(Ministry for National Economy)