UPDATE: Slovenia is making headlines as Prime Minister Robert Golob unveils a groundbreaking plan to give every worker a tax-free bonus of €639 (£560) just in time for the Christmas season. This initiative, which was passed through parliament in November, aims to benefit approximately 1 million workers across the nation.
The government plans to process these payments by December 18, 2023, providing a much-needed financial boost during the holiday season. However, the plan has sparked significant controversy, as it comes with an estimated cost of €600 million. Many employers, comprising up to 91 percent of those surveyed, expressed strong opposition, deeming the mandate unaffordable.
While the bonus is expected to bolster Golob’s popularity ahead of the elections in March, critics—including the Slovenian opposition and the European Commission—have raised alarms over potential violations of fiscal rules. The European Commission has cautioned that the initiative could jeopardize Slovenia’s financial stability.
Local business owners have mixed feelings about the initiative. Peter Bruncic, a small business owner in Maribor, expressed support for the bonus being tax-free, stating, “I have three employees, and for years I have been paying them Christmas bonuses.” Yet, he acknowledged the challenges this regulation poses for medium-sized enterprises facing tighter budgets.
Conversely, Andrej Zorko, head of the ZSSS, Slovenia’s largest trade union association, defended the plan, arguing that it compensates workers who contribute to company profits. “People work hard all year, and it’s fair that some of that should go to them, too,” he emphasized.
As this situation unfolds, workers and families across Slovenia are looking forward to the financial relief the bonus represents. Zorko himself plans to use his bonus to fund Christmas gifts for his children and a skiing trip in neighboring Austria.
This year’s initiative builds upon Slovenia’s tradition of providing workers with summer bonuses equivalent to one month’s salary, known as the 13th month’s pay. With this new winter bonus, workers will see an annual total of approximately €2,000 (£1,753) in extra earnings.
The public response remains divided, with many voters viewing Golob’s plan as a strategic move to enhance his re-election prospects. Critics from various sectors argue that the timing and compulsory nature of the bonus are problematic.
As Slovenia braces for this financial gift, the implications for businesses and the economy remain to be seen. The government will face additional scrutiny as it navigates this contentious policy, with all eyes on the upcoming elections and the potential fallout from this ambitious bonus initiative.
Stay tuned for more developments as this story unfolds.
