Slovakia has a population of more than 5 million people, with car manufacturing making up 43% of their total industrial output. The corporate income tax rate is 21%, and the tax year is flexible based on company requirements. There are many payroll and statutory benefits required to ensure compliance, so it’s important to understand the regulations before you get started.

Payroll and Tax Considerations in Slovakia:

  • Employment contracts must be written
  • Minimum wage is €580 per month
  • Employees receive 100% of the average earnings for working a public holiday
  • Employees whose contracts are terminated due to redundancy, relocation, or medical reasons are entitled to severance pay
  • Severance pay begins with 1 month of salary and increases to 4 months of salary depending on length of service
  • Tax rates range from 15 – 25%. Income from capital gains is taxed at a flat rate of 19% and income from dividends is taxed at 7%

HR and Statutory Requirements

  • Employees are entitled to paid annual leave of 4 weeks if they have worked for 60 days in a year
  • Employees receive 7 days paid sick leave per year. Additional leave can be granted without pay
  • Females receive 34 weeks of paid maternity leave, with 6 weeks before delivery and 28 weeks after
  • If a man is responsible for taking care of the child from birth, he is also entitled to the same duration of leave
  • There are 3 pillars of the old-age pension system – mandatory, defined contributions, and voluntary
  • An insured person is entitled to old-age pension if they have been insured for at least 15 years and reached retirement age

Holidays in Slovakia

  • January 1 – Republic Day
  • January 6 – Epiphany
  • April 15 – Good Friday
  • April 18 – Easter Monday
  • May 1 – Labor Day
  • May 8 – End of World War II
  • July 5 – St. Cyril & St. Methodius Day
  • August 29 – National Uprising Day
  • September 1 – Constitution Day
  • September 15 – Day of Our Lady of Sorrows
  • November 1 – All Saints’ Day
  • November 17 – Fight for Freedom and Democracy Day
  • December 24 – Christmas Eve
  • December 25 – Christmas Day
  • December 26 – St. Stephen’s Day

If you are just getting started in Slovakia, or need to simplify current operations, our cloud-based payroll platform with customized reporting can help. You can view payroll in real-time across all countries and currencies to manage costs and compliance for your workforce. Our hybrid service model gives you a dedicated US-based service team, and direct access to in-country experts when questions come up. Let Blue Marble simplify your payroll in Slovakia with technology and service. Click here to learn more