Ljubljana, Slovenia – Slovenia’s recently announced winter bonus for workers and pensioners is stirring controversy as the government of Prime minister Robert Golob faces mounting criticism over its timing and financial implications.The supplemental payment, arriving alongside the traditional “13th salary,” aims to provide economic relief ahead of the holidays, but has drawn fire from business leaders, opposition parties, and even some within the ruling coalition who view it as a politically motivated maneuver to boost flagging approval ratings. The measure, slated for disbursement by December 18th, is already prompting concerns about its impact on businesses and potential conflicts with European Union fiscal guidelines.
Slovenian Prime Minister Robert Golob has announced a plan to distribute a tax-free bonus of 639 euros (approximately $685 USD) to nearly one million workers next month, a move widely seen as a pre-election boost and sparking debate over its financial implications. The unexpected windfall, equivalent to half the country’s minimum monthly wage of 1277 euros, comes as Slovenia prepares for parliamentary elections in March.
While the bonus has garnered support from many voters, it has drawn criticism from opposition parties, the European Commission, and a significant majority of employers who will be responsible for funding the initiative. The total cost of the program is estimated to be at least 600 million euros.
Andrej Zorko, head of ZSSS, Slovenia’s largest trade union association, defended the plan, arguing it is a fair distribution of wealth generated by the country’s workforce. “People work hard all year round and thanks to that, companies profit, and it is fair that a part of that goes to them as well,” Zorko said, according to reports. “Now, as there are elections in Slovenia next year, the prime minister came up with this proposal, which we accept with both hands.”
“People work hard all year round and thanks to that companies profit, and it is fair that a part of that goes to them as well“, he said.
Zorko added that he intends to use his own bonus to purchase gifts for his nine-year-old daughter and five-year-old son, as well as fund a short ski trip to Austria.
Slovenia has a tradition of annual bonuses for workers, known as the “13th salary,” typically equivalent to one month’s pay and distributed before the end of June. Combined with the new winter bonus, workers could receive over 2000 euros in extra income. Pensioners and those receiving disability benefits will also receive a 150 euro winter supplement.
Golob, 58, has led a three-party, left-leaning coalition since winning elections in April 2022, defeating populist candidate Janez Janša. A former CEO of a state-owned energy company focused on green energy projects and a former whitewater rafting competitor, Golob rose to prominence after taking over a small environmental party that rebranded as the Freedom Movement shortly before the election. He promised to steer Slovenia back towards the political mainstream, and voters responded, giving his party 34% of the vote – a surprising result for the nation.
Slovenia is the wealthiest country in Central and Eastern Europe, with a GDP per capita higher than Spain and comparable to Italy, thanks to its manufacturing sector and thriving tourism industry. However, the Golob government has faced challenges, including a drop in support to 22% following the economic pressures caused by Russia’s invasion of Ukraine and a series of scandals. This has placed them behind Janša’s Slovenian Democratic Party, which currently leads in polls with 29%.
The bonus, announced in September, was intended to revitalize support for Golob’s government, but it surprised not only business groups and unions but also his smaller coalition partners. Critics have labeled the move a blatant attempt to win votes ahead of the upcoming elections.
“It is clear as day that this is a pre-election sweetener“, said Jozef Horvat, a member of parliament from the opposition Nova Slovenija party.
The European Commission has warned that the government risks violating fiscal rules with the program, estimating its financial impact at 0.3% of Slovenia’s GDP.
The winter bonus is scheduled to be paid by December 18, with some exceptions for companies facing cash flow issues, which will have until the end of March to comply.
Approximately 91% of employers oppose the mandatory bonus, according to a survey published last month by the Chamber of Commerce and Industry of Slovenia.
“Public statements by government officials that the Christmas bonus is supported by businessmen have turned out to be pure demagoguery, even a lie, based on the results of our survey,” said Blaž Cvar, its president.
The primary objection centers on the mandatory nature of the bonus. Forty-three percent of employers reported having paid bonuses last year, while 70% said they would have been willing to offer voluntary bonuses, particularly if they were tax-exempt. Peter Brunčič, 49, owner of a custom travel agency in Maribor, Slovenia’s second-largest city, is among them.
“I have three employees and I have been paying them Christmas bonuses at the end of the year for years, simply because I felt it was the least I could do for my workers,” he said. “It’s a time when everyone gives gifts, but it’s also a time when money is often tight, so I support the idea. It will also be more beneficial because it is tax-free. However, I can imagine that this is not so easy for many others, especially for medium-sized companies in Slovenia with a large number of employees, because the regulation came quite unexpectedly.”
Katja Lendvaj, 46, a high school teacher in Maribor, also supports the bonus and plans to use the money for a short family vacation. However, as an economist by training with experience in the private sector, she also fears the sudden announcement could create financial strain for some businesses.
“It would have been better if there had been some kind of soft transition, a transition period of several months, so that companies would not have to take out loans to cover this obligation,” she added.
This story was reported by Dnes, for important news throughout the day follow us on Google News Showcase.
