The slowdown in average wage growth in the highest-paying sector of the Slovak economy continues. After the largest year-over-year decline in nominal wages in the information and communications sector since the end of 2022, recorded in February, wages returned to positive growth in March.
However, when real wages are compared, this sector was once again the only one where earnings growth failed to keep pace with inflation. Real wages declined by 1.2% year over year. This was highlighted by new data from the Statistical Office of the Slovak Republic.
Recently, Mária Šurimová, Operations Manager of Košice IT Valley, told HN that wage developments in the information and communications sector may be influenced by several factors.
These include legislative changes, new social contribution obligations, and adjustments to employers’ cost structures.
Wage Growth in Almost All Sectors
“Nor can we rule out changes in employment arrangements. As a result of changes to social contributions and legislation, people with higher incomes may seek more advantageous forms of cooperation within the available options,” she said.
Despite this, the average monthly wage in the information and communications sector came close to the €3,000 mark in March. Thanks to a 2.3% nominal increase, earnings rose from €2,619 in the same period last year to €2,944.
The average nominal monthly wage also increased year over year in all ten sectors monitored on a monthly basis. The largest increase, 7.7%, was recorded in the sale and repair of motor vehicles.
Wages also increased in real terms—that is, after adjusting for inflation—in nine out of the ten sectors. Real wage growth ranged from 0.3% in accommodation services to 4.1% in the sale and repair of motor vehicles. In industry, the country’s key employment sector, real wages increased by 2.5% year over year.
Looking at the first three months of 2026 as a whole, nominal wages increased in nine of the ten monitored sectors, while real wages increased in seven of them. Real wage performance ranged from a 5% decline in information and communications to a 2.9% increase in construction.
Impact of Higher Taxes and Social Contributions
According to Ľubomír Koršňák, an analyst at UniCredit Bank, wage growth this year is being held back primarily by ongoing fiscal consolidation measures and the wage freeze in public administration.
“The scope for further acceleration of wages in the private sector may gradually narrow due to slowing growth in corporate profitability, partly as a result of the negative effects of fiscal consolidation and the higher tax burden on the private sector,” the analyst explained.
He also pointed out that wage statistics are published in gross terms. Employees’ net income growth will be reduced this year by higher health insurance contributions and, for some employees with above-average salaries, by higher taxes as well.
