UPDATE: Slovenia’s government has just confirmed a groundbreaking plan to distribute a tax-free Christmas bonus of €639 (£560) to every worker in the country, aiming to boost morale during the holiday season. This initiative, led by Prime Minister Robert Golob, comes as part of a larger effort to support the estimated one million workers across Slovenia.
The package, which was passed through parliament in November, must be processed by December 18, 2023. Companies facing cash flow issues can apply for an extension until the end of March, but the move has ignited a fierce debate among employers. Many are expressing concern over the financial burden, with a staggering 91 percent of employers opposing the mandatory payment, according to a poll from the Chamber of Crafts and Entrepreneurship of Slovenia.
Prime Minister Golob’s proposal, seen as a pre-election strategy ahead of March’s elections, has received widespread public support but is criticized by opposition parties and the European Commission. They argue that the plan, which could cost the government €600 million, risks violating fiscal rules and creates unsustainable financial pressure on employers.
“The claims that the plan was supported by business people is pure demagogy, even a lie,”
stated Blaz Cvar, president of the Chamber.
Despite the backlash, some business owners, like Peter Bruncic, who runs a small travel agency in Maribor, support the bonus. Bruncic noted he has been giving Christmas bonuses to his staff for years, emphasizing the importance of recognizing hard work during the holiday season.
“Everyone gives presents, but it is also the time when money is often scarce, so I support this idea,” he said.
Union leaders are also backing the initiative. Andrej Zorko, head of the ZSSS, Slovenia’s largest trade union association, remarked: “People work hard all year, and it’s fair that some of the profits go to them, too.” He plans to use his bonus to buy gifts for his children and for a skiing trip in neighboring Austria.
While the bonus mirrors the traditional 13th-month pay system that rewards workers with a summer bonus, the Christmas bonus adds a significant financial boost during a challenging economic period exacerbated by inflation and the ongoing effects of the Russia-Ukraine war.
This dual bonus system means workers could see an additional €2,000 (£1,753) in their pockets when combined with their summer pay. Pensioners and those on disability benefits will also receive a winter allowance of €150 (£131).
Golob, who leads a three-party coalition, is facing declining support amid rising living costs and various scandals, trailing behind opposition leader Ivan Jansa, who commands a 29 percent approval rating.
As the situation unfolds, all eyes are on the December 18 deadline and whether the government can navigate the economic and political challenges ahead. The decision to implement this bonus is not just about financial support; it represents a critical moment for Slovenia as it balances social welfare with economic sustainability.
Workers and families are encouraged to prepare for this unexpected boost, but the long-term implications for businesses and the national economy remain uncertain. Keep following for the latest developments on this urgent story.