Hiring Talent And Managing Payroll In Slovakia

Hiring in Slovakia? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Slovakia.

Employment Norms in Slovakia

As an employer or employee in Slovakia, it's important to have a solid understanding of the country's employment norms. From wages and working hours to employee benefits and termination procedures, there are numerous labor laws and regulations in place to ensure fair and safe working conditions.

General Information:

The currency of Slovakia is Euro, EUR.
Bratislava is the capital of Slovakia.
The official languages are Slovak and Hungarian, and legal documents can be drafted in these languages to be considered legally valid.
As of 2021, the GDP of Slovakia was reported to be $116.53 billion.

Slovakia's labor laws cover minimum wage, working hours, overtime pay, employment contracts, termination procedures, and social benefits.

Table of Contents

Select Section

Agreements
Onboarding Process
Visa
Minimum Wage
Payroll Cycle
Annual Bonus
Health Benefits
Working Hours and Overtime
Leaves
Social Security
Taxes for Employers
Taxes for Employees
Probation
Termination
Severance Pay
Employees or Contractors
Final Words

Agreements Onboarding Process Visa Minimum Wage Payroll Cycle Annual Bonus Health Benefits Working Hours and Overtime Leaves Social Security Taxes for Employers Taxes for Employees Probation Termination Severance Pay Employees or Contractors Final Words

Agreements

In Slovakia, employment agreements must be made in writing and can be drafted in Slovak or Hungarian. Here are some key points:

The agreement should include the names and addresses of both the employer and employee.
It should clearly state the job title and job description of the employee.
The agreement should specify the start date of employment and whether it is a fixed-term or indefinite contract.
It should also cover working hours, including any overtime or shift work.
The agreement should mention the employee's salary and any benefits, such as health insurance or pension plans.
It should outline the notice period required for termination by either party.
Finally, the agreement should cover any non-compete or confidentiality clauses that may apply.

Onboarding Process

There are no specific laws governing the onboarding process in Slovakia, but the best practices are:

Provide the new employee with a clear job description and an overview of their role within the company.
Collect all necessary documents, including a copy of their ID card or passport and their social security number.
Register the new employee with the social security office and the health insurance company.
Introduce the new employee to their colleagues and provide them with any necessary training or information to help them get started.

Visa

Slovakia has several types of work permits and visas available for foreign nationals who wish to work in the country.

Short-term visa: Allows for a stay of up to 90 days for business or work purposes.
Long-term visa: Allows for a stay of more than 90 days, typically for employment or study purposes.
Blue card: A special work permit for highly skilled foreign workers, valid for up to four years.
EU Blue Card: A similar work permit to the Blue Card, but with additional benefits for foreign workers who meet certain requirements.

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Minimum Wage

The current minimum wage in Slovakia is 700 EUR per month

Payroll Cycle

In Slovakia, the payroll cycle is typically monthly.

Annual Bonus

There is no provision for employers to provide annual bonuses. Bonuses can be distributed at employers' discretion.

Health Benefits

In Slovakia, there are no legal requirements for employers to provide health benefits to their employees. However, common health benefits may include:

Health insurance: Employers may offer group health insurance plans that cover medical expenses and provide access to healthcare services.
Wellness programs: Employers may offer wellness programs to encourage employees to maintain a healthy lifestyle and prevent illness.

Working Hours and Overtime

Work hours: The standard work week is of 40 hours, and employees work 8 hours a day.
Break: Employees are entitled to a 30-minute break after 6 hours of work, which may be split into two 15-minute breaks.
Overtime: Employees get 125% of their average salary if they work beyond 40 hours a week. For overtime done at night, employees receive 140% of their salary. Overtime on Saturday is 150% and on Sunday is 200% of the employee's salary.

Leaves

Sick Leave

An employee can avail of sick leave for up to 52 weeks.
During the first three days of sickness, employees are compensated at 25% of their regular pay rate, while for the 4th to 10th day of sickness, the leave is paid at 55% of the standard salary by the employer. From the 11th day of sickness, employees receive 55% of their full salary, paid by social insurance.

Parental leaves

Mothers are entitled to a minimum of 34 weeks of maternity leave.
Fathers are entitled to 28 weeks of paid paternity leave which can be availed after six weeks of childbirth. Paternity leave is granted if the partner is not getting maternity leave.
The Social Security agency pays maternity leave at 75.00% of the employee’s daily salary while the remaining is borne by the employer.
Parental leave can be taken up to 3 years. EUR 275.90 is paid to employees every month during parental leave through social security.

Annual leaves

Annual leave in Slovakia is usually 4 weeks per year but can vary depending on the length of service with the employer.
Employees are entitled to take annual leave once they have been employed for at least 6 months.

Public Holidays (for the Calendar year 2024)

Some dates may vary based on official notifications and traditional calendars.

1st January - New Year's Day
6th January - Epiphany
29th March - Good Friday
1st April - Easter Monday
1st May - Labour Day
8th May - Victory Day
5th July - St. Cyril and Methodius Day
29th August - Slovak National Uprising Day
1st September - Constitution Day
15th September - Our Lady of Sorrows Day
1st November - All Saints' Day
17th November - Struggle for Freedom and Democracy Day
24th December - Christmas Eve
25th December - Christmas Day
26th December - Boxing Day

Public Holidays (for the Calendar year 2025)

Some dates may vary based on official notifications and traditional calendars.

1st January - New Year's Day
6th January - Epiphany
18th April - Good Friday
21st April - Easter Monday
1st May - Labour Day
8th May - Victory Day
5th July - St. Cyril and Methodius Day
29th August - Slovak National Uprising Day
1st September - Constitution Day
15th September - Our Lady of Sorrows Day
1st November - All Saints' Day
17th November - Struggle for Freedom and Democracy Day
24th December - Christmas Eve
25th December - Christmas Day
26th December - Boxing Day

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Taxes for Employers

Employers are required to pay several taxes and contributions on behalf of their employees in Slovakia. These include:

Pension Insurance - 14%
Health Insurance - 10%
Disability Insurance - 3%
Sickness Insurance - 1.4%
Unemployment Insurance - 1%
Accident Insurance - 0.8%
Solidarity Reserve Fund -4.75%
Guarantee Insurance - 0.25%

Hence the total employer contribution is around 35.2%

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Taxes for Employees

In Slovakia, employees are required to pay several taxes on their income, including:

Income tax - There are two different taxations
- Upto EUR 38,553.01 - 19%
- More than EUR 38,553.01 - 22%
Pension Insurance - 4%
Health Insurance - 4%
Disability Insurance - 3%
Sickness Insurance - 1.4%
Unemployment Insurance - 1%

Hence the total employee contribution is 13.4%.

Probation

In Slovakia, the probation period for employees is set by law and is 3-6 months.

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Termination

An employer can terminate an employment contract for a serious breach of duties, financial difficulties, or restructuring.
Harassment or discrimination can lead to termination.
Notice periods must be followed by both parties as per the employment contract or required by law.

Severance Pay

Severance is paid to the employees who are wrongfully terminated. The amount of severance pay is based on the length of service. If an employee is terminated with notice, an employer has to pay a minimum of four times the employee’s average monthly earnings

Employees or Contractors

Misclassifying an employee as a contractor or vice versa can have serious consequences for employers in Slovakia.

If an employer misclassifies an employee as a contractor, the employee may miss out on social security contributions and employment rights.
if an employer misclassifies a contractor as an employee, they may be required to pay back taxes and social security contributions, as well as any missed employment benefits.

Final Words

In Slovakia, employment norms and opportunities have evolved significantly in recent years, with a growing emphasis on knowledge-based industries and foreign investment. The country has a relatively low unemployment rate and a well-educated workforce, making it an attractive destination for both job seekers and businesses.