Janša announces tax relief for work: will employees receive higher net wages?

Premier Janez Janša has expressed his commitment to implementing tax relief for labor, which he says would allow all employees to receive higher net wages. This proposal is part of the Development Act, currently blocked by trade unions, and includes an opposition bill with similar goals. In response to a question from MP Iva Dimic during a session at the National Assembly, Janša stated there is hope that these changes will be implemented through a collective decision. MP Iva Dimic (NSi, SLS, Fokus) asked whether the government plans to change the general income tax relief or introduce similar measures aimed at increasing net salaries for all employees. She highlighted the positive aspects of the Intervention Measures for Slovenia's Development Act, which is currently blocked and will be decided upon by voters in a subsequent legislative referendum on December 6. "In the previous mandate, our mini tax reform was halted halfway, and someone with an average salary lost 2,500 euros because of this," Janša said. He added that the economy either lost or did not gain competitive advantages. According to him, the opposition bill could correct this. "I won't mention specific numbers yet, as the Strategic Council for the Economy is preparing its proposals for a tax reform, based on which professional calculations will be made," he explained. In the Development Act, Janša emphasized the direct connection between the positive effects of the development capital and higher general income tax relief, as both relieve the burden on work. He noted that excessive burdens on labor are one of the key obstacles to greater competitiveness in Slovenia. His opponents, he said, are building a campaign against the capital on social contributions. However, he described the law as one that will enable this generation, our children and grandchildren, to become rich, not just those who proposed the referendum. Not all work in Slovenia is equally burdened, Janša added. Low-paid work is competitive, attracting industry with low added value, while mid-level and high salaries are excessively burdened. "The development capital enables growth, higher wages, and better welfare for everyone. We are creating an environment where more people can become wealthy, where people will be fairly paid," he stressed. Janša believes voters will support the law. If it were already in effect, it would bring not only tax relief for labor but also the possibility of reducing the tax on energy products for nine months, which would affect prices by around ten percent. "Those who complain about their situations should know how to connect the price they pay for energy with some measure that is blocked. We have at least two months of delay. If the law is enacted in December, which I believe it will be, it will apply forward, not backward, and people will again give money back that they wouldn’t have needed to pay," he assessed. He recalled that high energy prices were discussed at the recent European Union summit in Brussels. "This was the main topic, as Europe has not achieved its goal of strategic autonomy, which was the aim of the green transition, not climate warming, and because nuclear energy was excluded, electrification is at the beginning, not the end. If it had been at the beginning, we wouldn’t have these problems and need another 20 years," he said. This winter will be tough, he warned, and the focus is on using all available maneuvering space to stabilize and lower energy prices as much as possible. Premier Janez Janša has outlined his commitment to tax relief for labor, which he claims would allow all employees to receive higher net wages. During a session at the National Assembly, he indicated that the government is considering options for raising the general income tax relief and other changes to the tax code. He expressed hope that political consensus could be reached regarding the proposed measures. Premier spoke on the issue in response to a question from MP Iva Dimic (NSi, SLS, Fokus), who asked whether the government is preparing measures to increase net salaries for all employees. She pointed out the Intervention Measures for Slovenia’s Development Act, which voters will decide on due to the demand for a subsequent legislative referendum on December 6. According to Janša, the tax reform from the previous mandate was stopped halfway. "Someone with an average salary lost 2,500 euros because of this, and the economy either lost or did not gain competitive advantages," he said. He mentioned that an opposition bill proposing similar changes has already been introduced in the National Assembly, and the possibility of its amendment remains open. However, Janša did not want to reveal specific figures at this time. He explained that the Strategic Council for the Economy is concluding the preparation of proposals for a tax reform, based on which professional calculations will be conducted. "There is some hope that we will achieve these changes and that it will be a common decision," he emphasized. He particularly highlighted the importance of development capital and higher general income tax relief. According to him, the high burden on labor is one of the biggest obstacles to the competitiveness of the Slovenian economy. He noted that middle and high incomes are overly burdened, while the low costs of less demanding work attract industries with lower added value. Such an economic model, he assessed, hinders the country’s development. "The development capital enables growth, higher wages, and better welfare for everyone. We are creating an environment where more people can become wealthy, where people will be fairly paid," he said. Janša is confident that voters will support the development law in December. At the same time, he noted that its implementation would not only provide tax relief for labor but also allow for a temporary reduction in the tax on energy products. According to his statements, such a measure, valid for nine months, could influence the prices of energy products by approximately ten percent. Due to the blocking of the law, however, the country is losing at least two months in implementing measures. "If the law is enacted in December, which I believe it will be, it will apply forward, not backward, and people will again give money back that they wouldn’t have needed to pay," he warned. He touched on the high cost of energy, which was one of the central topics at the recent European Union summit in Brussels. According to his assessment, Europe is facing the consequences of insufficient energy independence and decisions related to the green transition. He estimated that this winter will be challenging, so the government will strive to utilize all available opportunities to stabilize and reduce energy prices. Whether employees will actually benefit from higher net salaries and to what extent is still unclear. Specific proposals for tax changes will be known after the completion of professional calculations, and the December referendum will also have a significant impact on further measures. Premier Janez Janša expressed agreement with tax relief for labor during parliamentary questions. He also noted that energy product prices could have already decreased by ten percent if opponents of the intervention law for Slovenia’s development had not demanded a referendum decision. During parliamentary questions, the first question addressed the staffing situation in education and the announced educational reform. MP SD Damijan Bezjak Zrim asked Janša about the future of the Slovenian education system, measures to ensure quality public education, appropriate working conditions for employees, and equal opportunities for all children. Janša initially reminded that discussions within European institutions have been ongoing for several years about what the school system will look like in the future. Especially due to rapid technological development, a turning point is approaching. "The world is moving very quickly," he mentioned, adding that countries following technological progress will implement a lifelong learning system in 10 to 15 years. According to his statements, this means that it will no longer be possible to acquire knowledge in youth that will serve one throughout life, but instead, the time spent studying will need to be rearranged differently. "The announced educational reform may be the first step in this direction, a very small one, primarily addressing the problems we have in the existing system," he explained. Silencing the head in the sand would represent a great mistake The reform is necessary, according to Janša, because data show that the knowledge young people obtain in the Slovenian education system is neither on par with that in comparable countries nor better in the global context. "If this system were ideal, the results would be different." He believes it would be a big mistake and a poor path for those whose future depends on it to silence the head in the sand before reality. According to his statements, the poor results are not due to a lack of staff in education, as otherwise the results would be even worse. "Regulations, norms, and everything attached to the school system and teachers are the reason for the poor results," he said. In light of the minister's announcement about an ideologically neutral school, which was one of the questions posed to the premier, Janša said that the coalition agreement contains a commitment to implementing an ideologically neutral school, guaranteed by Article 41 of the Constitution of the Republic of Slovenia. "The Constitution of the Republic of Slovenia states that the moral upbringing of children is the responsibility and duty of parents, not schools. That is what the constitutional concept of an ideologically neutral school is, and we will implement it. So, removing ideological content from kindergartens and schools, raising the prestige of the teaching profession, respecting teacher autonomy, and restoring teacher authority. This is the goal we are pursuing, which the ministry will also have to pursue," he explained and added that educational reforms cannot be carried out without the cooperation of teachers, educators, and the profession. "Now, those protesting are those not included, but they built a system giving poor results," he noted and said that if Slovenia and the younger generation are to thrive, it is not the place to oppose corrections to something that does not function well. However, not