Development and Role of the Subsistence Minimum in the Payrolls Legislation in Slovakia from year 1993

University of Economics in Bratislava, Faculty of Business Informatics, Department of Accounting and Auditing, Dolnozemská 1, 852 35 Bratislava, Slovakia

^* Corresponding author: zuzana.kubascikova@euba.sk

Abstract

Research background: The subsistence minimum category is used in the Slovak Republic in determining several wage and tax categories. In this paper I analyze whether the set standard of living is sufficient with regard to the development of the average wage since 1993 to the present day. Subsequently, the quantities that are based on the subsistence level - non-taxable amounts of the taxpayers’ tax base are also analyzed. The results of the analysis show that the distance between the subsistence level and the level of non-taxable parts has gradually increased. The topic of payrolls and related wage variables is a complex and ever-changing topic. Not many authors in Slovakia pay attention to it, and due to constant changes in the given area, the findings of publications and papers is also limited.

Purpose of the article: This paper deals with general theoretical, legal and historical starting points and links between non-taxable parts and the subsistence minimum. The paper presents a cross-section of the history of the application of non-taxable parts in the Slovak Republic.

Methods: The method used in the paper is that of hypotheses determination and testing.

Findings & Value added: This paper also analyzes the state of national regulation and development trends in the area. In addition to constructive criticism, the article also contains suggestions for improving the current situation.