From January 1, 2027, Ukrainians in Slovakia can expect an increase in the prices of bakery products. The reason is the automatic increase of the minimum wage, which affects the size of extra payments for work at night, on weekends, and holidays.
Why will prices rise?
The minimum wage in Slovakia in 2027 will increase to 972 euros per month. This decision was made after social partners failed to agree on its amount, and it was determined automatically by a set formula: 60% of the average wage for the year before last.
Extra payments for night, weekend, and holiday work are tied to the minimum wage. The Slovak Union of Bakers, Confectioners, and Pasta Makers (SZPCC) notes that over 82% of bread, pastry, and cake production happens during this "extra payment" time. Because of this, bakers' production costs will significantly increase.
For example, with a base salary of 1000 euros, extra payments for night and weekend shifts can raise the total amount to almost 2000 euros. Overall, all extra payments can reach up to 240% of the worker's hourly rate.
What does this mean for consumers?
Bakers will have to pass the increased production costs onto prices for retail chains. However, how this will affect final prices for buyers depends on the sales strategy of the stores and their markups.
The SZPCC criticizes high retail markups in Slovakia, which they believe significantly exceed the markups of similar chains in other EU countries.
Bakers' demands to the state
Labor costs in the baking industry make up about 50% of all expenses. Because of this, the industry cannot absorb the cost increases alone, especially considering the pressure from retail chains on purchase prices.
The head of SZPCC, Milan Lapšanský, notes that workers receive only part of these extra payments because a significant portion is taken by the state. The union calls on the state to change the extra payment system to increase the competitiveness of Slovak producers amid growing imports of bakery products. In 2025, imports exceeded 200 million euros and continue to grow.
