Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
Employer of Record services in Slovenia provide comprehensive support for payroll cycles, employer and employee contributions, minimum wage compliance, hiring processes for employees, contractors, and expats, background checks, employment contracts, onboarding procedures, employee benefits, social security administration, healthcare and insurance coverage, leave policies, public holidays, work permits and visas, probation and notice periods, as well as termination and severance procedures, including personal income tax considerations.
| Overview | |
| Continent | Europe |
| Country | Slovenia |
| Capital | Bratislava |
| Time zone | UTC+01:00 (CET) |
| Total Time zones | 1 |
| Personal Tax filing deadline | 31st July |
| Financial Year | Calendar year. 1st Jan to 31st Dec |
| Date format | dd/mm/yyyy |
| Currency | Euro (EUR) |
| VAT | the standard rate is 22% |
| Employers | % of Gross Salary |
| Pension | 8.85% |
| Health Insurance | 6.56% |
| Unemployment | 0.06% |
| Work Injury | 0.53% |
| Maternity | 0.1% |
| Total Employment Cost | 16.1% |
| Employees | % of Gross Salary |
| Pension | 15.5% |
| Health Insurance | 6.36% |
| Unemployment | 0.14% |
| Maternity | 0.1% |
| Total Employee Cost | 22.1% |
| Minimum Wage | |
| Minimum Wage | The minimum wage in Slovenia is 1024.24 EUR per month. |
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | Employers are obligated to pay an annual leave allowance of at least a month’s salary at the current minimum wage, payable by June 30. Christmas bonuses are common and often tied to performance, but not required. |
| Personal Income Tax (PIT) | |
| Income Range | Tax Rate |
| Less than 8,500 EUR | 16% |
| 8,500 - 25,000 EUR | 26% |
| 25,000-50,000 EUR | 33% |
| 50,000-72,000 EUR | 39% |
| Over 72,000 EUR | 50% |
Employee Benefits in Slovenia
Employee benefits in Slovenia are a crucial part of the country's extensive social security system, which encompasses pensions and healthcare. In addition to the mandatory benefits, there are also supplementary employee benefits available in Slovenia, such as voluntary pension plans, personal accident coverage, and life insurance. While supplemental health insurance is offered, it is not commonly provided by companies. Moreover, employees in Slovenia enjoy various perks, including fuel cards, bonuses, meal subsidies, educational stipends, and mobile phones.
Mandatory Employee Benefits in Slovenia
Mandatory Employee Benefits in Slovenia are an integral part of the comprehensive social security system in the country. This system encompasses various aspects such as pensions, disability benefits, health insurance and healthcare, unemployment insurance, parental insurance and family benefits, as well as social assistance. Contributions and taxes towards social security are paid by both employees (22.10% in total) and employers (16.10%).
Pension Insurance
The pension system in Slovenia operates on a three-tier structure. The first pillar is the pay-as-you-go (PAYG) scheme, with a contribution rate of 24.35% of gross wages. Within this, employees contribute 15.5%, employers contribute 8.85%, and self-employed individuals are responsible for covering the full amount.
The second pillar includes mandatory occupational pensions for specific sectors such as public service and banking, as well as hazardous occupations. In other private sectors, participation in occupational pensions is voluntary, with various pension scheme options available.
The third pillar consists of voluntary personal savings for retirement purposes.
Health Insurance
In Slovenia, the compulsory health insurance (CHI) scheme provides coverage for the entire population based on employment, self-employment, or residence, including their family members. The law guarantees insured individuals the following benefits: payment for health services, sick pay during temporary absence from work, and reimbursement of travel expenses incurred for obtaining health services.
While the CHI scheme is comprehensive, it does not always cover the full cost of all healthcare services. However, certain services are fully covered, including:
- All health programs for children and youth, with complete coverage for children up to the age of 18.
- Students are covered as long as they are attending school.
- Family planning services.
- Medical services related to occupational, malignant, and other diseases.
- Medical services related to tissue and organ donation and transplantation.
- Long-term nursing care.
For all other services, compulsory health insurance covers a percentage of the full cost of care, and individuals may need to pay the remaining amount out-of-pocket or consider acquiring a voluntary health insurance policy to cover the difference.
Supplementary Employee Benefits in Slovenia:
Retirement
In Slovenia, employees have the option to participate in voluntary supplementary pension plans to enhance their retirement savings. These plans can be established either as collective insurance with an employer, where the employer funds the insurance for all employees, or individuals can choose to enter an individual retirement plan.
Employer contributions to supplementary pension funds are eligible for deductions in corporate and personal income taxes, as well as social security contributions. By making contributions to a pension plan, employers can lower their tax base, and these contributions are not included in the calculation of social security contributions. Both the employer and employee benefit from tax relief on pension contributions, which can be up to 5.844% of the employee's gross wage, with a yearly cap of approximately €2,800 per employee. This maximum amount includes premiums paid by employees for individual pension schemes, with priority given to employer contributions for tax relief.
To qualify for favorable tax treatment, a supplementary pension plan must cover at least 51% of all employees of the sponsoring employer and be authorized by the Ministry of Labor.
In Slovenia, there is also a third pillar for retirement savings. Premiums paid into this pillar receive tax relief and preferential treatment, although the incentives are lower compared to other occupational schemes. Tax incentives for individual pension insurance only provide relief for personal income tax and not other social contributions. As a result, the third pillar is not widely utilized in Slovenia due to these limitations.
Other Voluntary Insurance Products
Travel Health Insurance
Travel health insurance provides coverage for medical treatment expenses during travel and stays abroad. Typically, companies offer this coverage specifically for business travel, with 93% of companies providing it.
Personal Accident Insurance
Apart from the benefits offered by the social security system, certain companies provide personal accident insurance that covers accidents, death, and permanent disabilities. The cost of this insurance is typically covered by the employer, and it is also possible to extend coverage to family members through employee contributions.
Life Insurance
Group life insurance policies offered by companies generally do not include a savings component. The beneficiaries of the insurance policy in the event of death can be either the company or individuals, such as family members. The premium paid is considered a taxable expense for the company. However, if the company is listed as the beneficiary, the payment is treated as company income, resulting in an increase in the tax base for the payment year.
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