Slovaks have lowest net salary in Central Europe
State levies and taxes take most.
Seven years ago, Slovaks enjoyed the second highest net salaries in the private sector among the citizens of the Visegrad Group behind Czechs. Now, they are the end, reports Denník N daily.
In recent years, the growth of average salaries in Slovakia has been driven mainly by state administratiof the state. However, between 2016 and 2023 the salaries only grew at half the rate compared to surrounding countries; while in Slovakia it was 40 percent, in Hungary it was 90 percent and in Poland 89 percent, according to a tax report from the company Forvis Mazars.
The economy of Poland and Hungary grew in recent years and approached the average of the European Union. On the other hand, the economy of Slovakia and Czechia stagnated, although at different levels.
Slovakia more or less stopped approaching the EU average more than decade ago; not because its economy is not growing, but because other countries are growing faster.
Since 2016, the salaries in Slovakia's private sector have only covered inflation, while in the salaries in neighbouring countries outpaced the price growth, with Poland benefiting the most in this regard.
Slovaks are burdened by high taxes and levies. Last year the super gross salary in the Slovak private sector was higher than that in Hungary. However, among all the Visegrad Group countries (Poland, Slovakia, Czechia and Hungary), the Slovak state takes the largest share from people's paycheck. As a result, Slovak employees receive only 51 percent of their super gross salary. In Poland it is 57 percent, in Hungary 59 percent and in Czechia 61 percent.
The necessary consolidation of public finances can further deepen the wage gap.
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