HR and HR Software Guide
Slovakia has one of the fastest-growing economies in Eurozone and in Europe. Currently, the country has a per capita GDP (PPP) of $33,025 and ranks among the most progressive countries in the world. The total value of imports and exports is equal to 189.2% of GDP. Slovakia is an attractive destination for foreign investors largely due to its low tax rates, skilled workforce, and low wages. It continues to exhibit strong economic growth backed by low public debt, sound financial sector, and large inward investment.
Principal Language: Slovak
Government: Parliamentary Representative Democratic Republic
Capital City: Bratislava
Major Provinces: Košice, Prešov, Nitra, Žilina
Regular work schedule in Slovakia is 8 hours per day and 40 hours per week. A normal week has 5 working days and 2 rest days which are usually Saturday and Sunday or Sunday and Monday. However, workers employed in sectors such as healthcare can work up to 56 hours in a week. Night work or work done between 10 p.m. and 6 a.m. is paid at 20% of regular pay.
Employees cannot work for more than 48 hours in a week including overtime. Overtime is paid at 25% premium over regular wages. Employees cannot be asked to work for more than 150 hours in a year. Medical staff can be asked to work overtime up to 250 hours in a year. Employees can voluntarily work overtime of up to 400 hours in a year. Work done on a day of rest or a holiday is paid at 50% premium over regular remuneration.
The following national holidays are observed in Slovakia:
- January 1: Day of the Establishment of the Slovak Republic
- January 6: Epiphany
- Good Friday
- Easter Monday
- May 1: Labor Day
- May 8: Victory Over Fascism Day
- July 5: St. Cyril and Methodius Day
- August 29: Slovak National Uprising Anniversary
- September 1: Day of the Constitution of the Slovak Republic
- September 15: Day of Our Lady of Sorrows
- November 1: All Saints’ Day
- November 17: Struggle for Freedom and Democracy Day
- December 24: Christmas Eve
- December 25: Christmas Day
- December 26: St. Stephen’s Day
Employees who have worked for a year with the same employer are entitled to 4 weeks’ paid annual leave. Those who have worked for at least 60 days in a year are entitled to annual leave prorated according to the number of months worked in a year. Employees with 15 years of continuous service or those who have reached the age of 33 are entitled to annual leave for 5 weeks. Unused vacation only in excess of 4 weeks is compensated. Vacation can be split into several different periods, but at least two weeks of vacation must be taken continuously.
Pregnant employees are entitled to 34 weeks of maternity leave. The duration of leave is increased to 37 weeks in the case of single mothers and to 43 weeks in the case of multiple births. Employers are not required to pay compensation during the maternity leave since it is paid by the Social Insurance Agency.
Employees can take 2 days of paid leave: one after the death of a child or a spouse and another to attend the funeral. Paid leave for 1 day can be taken to attend a close relative’s funeral and another day if the employee is arranging the funeral.
Employees are given 1 day’s paid leave for marriage.
After maternity leave, fathers or mothers can take parental leave until the child reaches the age of 3. In case the child has chronic health problems, parental leave can be taken until the child is 6 years old.
Employers must pay employees during the initial 10 days of sick leave. After that, employees are paid by the Social Insurance Agency for sick days. Employers are also required to provide 7 days of paid leave in a year for treatment or check up in a medical facility.
Pension and Social Security
The legal retirement age in Slovakia is 62 years. Employees who have contributed to the pension system for at least 15 years are eligible for a full pension. Social security benefits include pensions, death benefits, maternity pay, sick leave pay, and work accident payments. Employees need to contribute 4% of their wages to the social insurance program while employers contribute 14%.
Mandatory pension insurance is administered by the Social Insurance Agency and funded on an ongoing or PAYG (Pay As You Go) basis. Employees who contribute to this mandatory pillar can redirect 9% of their gross salaries to their individual accounts. The contribution rate is 28.75 % of gross wages out of which employers pay 21.75% while employees pay 7%. The contribution rate is split between the public pension program (19.75%) and the new mandatory pillar (9%). Public pension cost is likely to increase to 11.2% of GDP in 2050 while the corresponding figures in the European Union will average between 10.6% and 12.8%.
The occupational pension system is financed by capitalization and administered by single-purpose private pension management companies or PFMCs. Three different funds with different risks are given:
- Conservative Fund: 100% allocation into money market instruments and bonds with no equity exposure
- Balanced Fund: A maximum of 50% equity share with at least 50% allocation into money market instruments or bonds
- Growth Fund: A maximum of 80% equity share
Individuals who have registered as a job seeker with the labor office and contributed to the social insurance system for at least 2 years in the last three years are eligible for unemployment insurance benefits. The benefits equal to 50% of the daily assessment basis are paid for up to 6 months. The daily assessment basis is based on wages earned during the 2 years before unemployment and the total earnings used to determine contributions. Funding is:
- 1% of covered earnings by employees
- 2% of declared earnings by self-employed individuals
- 1% of covered payroll by employers
- The remainder is funded by the government
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- One HR software for your global needs
- Ensured compliance with in-country employment and labor laws
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- Supporting 170+ countries and localized in 17+ languages
- Improved employee experience with employee self-service functionality and 24/7 employee support