Slovenian Unions Seek Higher Tax Relief and Allowances Amid Rising Costs

Seven trade union centers, unions, and confederations in Slovenia have proposed to the government that social partners consult on increasing the general tax relief by a tenth. They also suggest a 15 to 20 percent increase in reimbursements according to the decree on the tax treatment of reimbursements of expenses and other income from employment.

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Trade union centers propose that the amounts of general and other tax reliefs and the values of tax brackets be increased by at least 10 percent. In this case, the general tax relief would increase from 5,552 euros to 6,107 euros.

Unions are advocating for adjustments to the coefficients of tax relief amounts and net annual tax bases for the upcoming year. "Trade union centers propose that the amounts of general and other tax reliefs and the values of tax brackets be increased by at least 10 percent. In this case, the general tax relief would increase from 5,552 euros to 6,107 euros," they explained. This measure, they believe, would ensure an increase in net wages and real growth in disposable income for workers in a very short time.

Furthermore, the unions propose that the government adjust the non-taxable amounts based on the decree on the tax treatment of reimbursements of expenses and other income from employment. These amounts have not changed since 2022, and the unions argue they no longer reflect realistic costs. They are proposing a 15 percent increase for most reimbursements, including those for transportation, mileage for business travel, field allowances, separate living allowances, and solidarity assistance.

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This means that the decree today no longer sets amounts that are appropriate for real costs and would ensure an adequate non-taxable amount of expense reimbursements and certain other income from employment.

For food and daily allowances, the unions are proposing a 20 percent adjustment. This would raise the allowance from 7.96 euros to 9.55 euros, justified by a significant increase in food inflation, which stood at 19.6 percent during the relevant period. The unions urge the relevant ministry and the government to promptly amend the decree and adopt the proposed changes.

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We are convinced that a change in the amount of monetary sums in the Decree is urgently needed. Therefore, we call on the relevant ministry and the government to immediately proceed with changing the amount of non-taxable monetary sums in the proposed amount and to adopt them as soon as possible.