Guide to employment, payroll and benefits in

Slovakia

Rivermate offers complete payroll, benefits and compliance services for

Slovakia

01. Overview

Last updated: 

August 19, 2021

Currency
Euro
Capital
Bratislava
Ease of doing business
Language
Slovak
Population
5459642
GDP growth
3.40%

02. Grow your team in

Slovakia

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Slovakia

, particularly if you don't have established local relationships. You can hire employees in

Slovakia

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Slovakia is a landlocked country in Central Europe, formally known as the Slovak Republic. It is bordered on the north by Poland, on the east by Ukraine, on the south by Hungary, on the west by Austria, and on the northwest by the Czech Republic. Slovakia covers about 49,000 square kilometers and has a population of over 5.4 million people. Bratislava is the capital and largest city, while Koice is the second largest. The Slavs first arrived in what is now Slovakia in the 5th and 6th centuries. They were instrumental in the establishment of Samo's Empire in the 7th century. They established the Principality of Nitra in the 9th century, which was later annexed by the Principality of Moravia to form Great Moravia. Following the fall of Great Moravia in the 10th century, the region was absorbed into the Principality of Hungary, which would later become the Kingdom of Hungary in 1000. Following the Mongol invasion of Europe in 1241 and 1242, most of the region was lost. After World War I, and the breakup of Austria-Hungary, the region was largely recovered thanks to Béla IV of Hungary, who also settled Germans, leading them to become an significant ethnic group in the area, especially in what are now parts of central and eastern Slovakia. During World War II, the Slovak Republic existed as a partly recognised client state of Nazi Germany. Czechoslovakia was re-established as an independent nation at the end of World War II. Czechoslovakia was an independent country that became part of the Soviet-led Eastern Bloc after a coup in 1948. The Prague Spring culminated attempts to liberalize communism in Czechoslovakia, which were crushed by the Warsaw Pact invasion of Czechoslovakia in August 1968. The Velvet Revolution ended Communist rule in Czechoslovakia peacefully in 1989. After the peaceful division of Czechoslovakia, recognized as the Velvet Divorce, Slovakia became an independent state on January 1, 1993. Slovakia is a developing nation with a high-income economy that scores extremely well on the Human Development Index. It also scores well on civil rights, press freedom, internet freedom, democratic governance, and peacefulness measures. The country combines a market economy with a robust social insurance system, offering residents universal health care, free education, and one of the OECD's longest paid parental leave periods. Slovakia is a member of the European Union, the Eurozone, NATO, the United Nations, the OECD, the World Trade Organization, CERN, the OSCE, the Council of Europe, and the Visegrád Group. With 1.1 million cars produced in 2019, it is the world's largest per-capita car manufacturer, accounting for 43% of its overall manufacturing production.

04. Public holidays

05. Types of leave

Paid time off

Employees who worked for less than 60 days are entitled to one-twelfth of their yearly entitlement every twenty-one days.Employees who worked more than 60 days in a year are entitled to a prorated four weeks of vacation.

Public holidays

Slovakia recognizes fifteen public holidays.

Sick days

The employer pays for the first ten days.The first three days are paid at a rate of 25% of the daily income.Days 4 through 10 are paid at a rate of 55% of the daily wage.

Maternity leave

Maternity leave is entitled to 34 weeks for mothers.Twin mothers are eligible to a total of 43 weeks of maternity leave.Mothers who are single have the right to 37 weeks of maternity leave.The Social Security Administration pays the leave at a rate of 75 percent of the daily wage up to a maximum of 66,6083.

Paternity leave

Only if the mother is not getting maternity benefits is a father eligible to 28 weeks of paternity leave, which begins six weeks after the mother gives birth. Paternity leave is granted to single dads for a period of 31 weeks. The Social Security Administration pays for the leave.

Parental leave

Parental leave can be taken by a parent or guardian until the kid reaches the age of three, or until the kid reaches the age of six if the kid is suffering from a long-term illness.The parental allowance is 270 EUR per month or 370 EUR per month if the parent has already received maternity benefits in an EU/EEA country. The Central Office of Labor, Social Affairs, and Family Policy pays it.

Other leave

06. Employment termination

Termination process

In Slovakia, employment contracts may be canceled if both parties agree. These may also apply to immediate terminations or to exceptional situations in which the employer is required to terminate the employment within two months of becoming aware of the grounds for immediate termination, and no later than one year from the day those grounds arose. Without specifying a reason for termination during the probationary period, a written notice must be given and delivered to the other party at least three days before to the designated termination date.

Notice period

The notice period for a Slovak labor contract is generally one month (unless longer notice period is stipulated by the Labour Code). However, if the employee has been employed for at least one year but less than five years, they are entitled to a two-month notice period. If an employee has worked for the company for at least five years, the notice period is three months. When employees resign, they must adhere to the following notice period regulations. If the employee has worked for the company for less than a year, they must provide notice within a month. If the employee has worked for the company for two years or more, a two-month notice period is required.

Severance pay

Severance pay is determined by the duration of employment and the nature of the termination. When an employee's employment is terminated without cause, the minimum severance pay is one to four times the employee's average monthly earnings, depending on the employee's years of service (2 to 20 years).

Probation period

Probation is limited to three months for operational positions and six months for management positions.

07. Working hours

General

In Slovakia, the standard work week is 40 hours spread over five days. Employees may work between 37.5 and 40 hours per week under various shift work arrangements. A collective bargaining agreement or employment contract may specify a different weekly work schedule. Additional rules apply to employees who work in close proximity to hazardous chemicals or radiation, as well as to employees under the age of 16.

Overtime

Overtime is permitted only in emergency situations. Work performed at night (between 10 p.m. and 6 a.m.) is compensated at a percentage of the employee's regular hourly rate, or more if the employee's work is particularly dangerous. Employees who will be scheduled to work at night on a regular basis must undergo a medical examination to ensure they are physically fit for night work and must undergo examinations on a regular basis, at least once a year, at the expense of the employer.


Employers are required to provide safe working conditions for night workers and to consult with unions or employee representatives on a regular basis regarding the organization of night work.


Overtime pay is 125 percent of the regular salary for hours worked over 40 per week. Saturday work is compensated at 150 percent of the regular salary. Sunday work is compensated at 200 percent of the regular salary. The pay rate for night work is 140 percent of the regular salary.

08. Minimum wage

General

The Slovak Republic has increased its minimum salary to 623 EUR per month in 2021. However, many workers earn more than 900 EUR a month, and possibly even more depending on the company's health. Salary and perks are both considered part of work income under Slovak Republic compensation rules.

09. Employee benefits

General

Slovakia has a national healthcare system. Permanent inhabitants and certain non-permanent residents are covered by the state system or one of two private health insurers that collaborate with the government system. Private supplemental insurance is available, although few individuals utilize it. There are also private providers and clinics. An employer must register an employee for health insurance within eight days of the employee's first day of work and remove the person from the register when employment ends.

Employee perks often include a corporate vehicle, a food allowance, a transportation allowance, an education allowance, a mobile phone, and flex time.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Slovakia

to hire a team takes time, money, and effort. The labor law in

Slovakia

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Slovakia

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Slovakia

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Slovakia

via our Employer of Record / PEO solution.

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