Aktuality.sk asked a panel of experts, including CELSI Scientific Director Martin Kahanec to assess whether the state can afford an across-the-board 8.4 percent pay rise for public and state sector workers.

The Slovak government has announced an across-the-board 8.4 percent pay rise for public and state sector workers - at a time of record public debt and declared fiscal consolidation.

Aktuality.sk asked a panel of experts to assess whether the state can afford such a move.

CELSI Scientific Director Martin Kahanec warns that continuing on this path without securing its financing is not sustainable in the long run.

At the same time, he cautions against oversimplification: higher average wages in the public sector are common in many advanced economies and faster wage growth in education or healthcare can be justified. The key question, he argues, is whether such growth reflects labour market realities and contributes to better public services.

He would not label the wage increase political corruption as such, but if the primary motivation is to win votes ahead of an election, it amounts to electoral populism that shifts costs onto future governments and generations, and in the current economic and political climate can become a gamble with the country’s future.

The panel also featured contributions from Anton Marcinčin (analyst, Confederation of Trade Unions of the Slovak Republic- KOZ SR) and Ondrej Greguš (analyst, XTB).

🔗 Read the full Aktuality.sk article (in Slovak) at: https://www.aktuality.sk/clanok/cXfmnE0/kupovanie-volicov-alebo-nutnost-odbornici-zhodnotili-vladny-plan-dvihnut-platy-o-84-percent/

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