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Payroll in Slovakia

Payroll in Slovakia

Payroll is the main service associated with paying taxes and contributions by employees and employers in Slovakia. This activity can be completed by an internal accountant or can be outsourced to specialized service providers, depending on the needs of a company.

Below, you can find out the main aspects related to payroll in Slovakia, such as the contributions that must be paid by employers and workers, as well as the procedures and laws to respect related to them. You can also rely on our lawyers in Slovakia for guidance on the Labor Law.

What does Slovak payroll cover?

Payroll covers the payment of all taxes related to labor on behalf of both employer and employees. For this purpose, all of them must be registered with various authorities in Slovakia. These are:

An important thing to consider about payroll and social security contributions to pay is that these are not granted based on residency in Slovakia, but on occupation. In other words, a person must be active in the field of employment in order to benefit from protection under the payment of these premiums.

For this purpose, the employer has the duty of registering each employee for social security purposes.

If you need more information on payroll in Slovakia and what it entails from a legal point of view, our lawyers are qualified to explain it to you.

The distribution of social security contribution between employer and employee

Payroll in Slovakia implies the payment of social security contributions on the gross wage of an employee. This means that part of them fall onto the hiring business and another part on the worker.

Employees are subject to the following payments:

  • 9.4% per month for social security reasons, however, the amount paid does not exceed 750 euros on a monthly basis;
  • 4% of the wage of an employee goes to the health insurance fund.

In the case of employers:

  • social security contributions rise to 24.4% of an employee’s salary per month;
  • another contribution of 0.8% must be paid as a work accident contribution;
  • 10% is the health insurance contribution.

The best way to approach the computation and payment of these premiums is through an accountant in SlovakiaShould you need support in this sense, you can rely on our specialists.

Important aspects to consider about payroll in Slovakia

The computation of taxes that need to be paid by both employers and employees under Slovak payroll regulations is governed by the Employment Code which specifies that salaries must be delivered to worker’s bank accounts at least once a month. Apart from these, overtime and other benefits must also be taken into consideration when generating pay slips.

The income tax applied to employees is established at the following rates:

  • for a yearly income of 38,553 euros, the personal income tax is 19%;
  • for incomes surpassing 38,553.01 euros per year, the income tax is 25%;
  • Slovakia also has a non-taxable income base which in 2022 was 4,579 euros.

If you need assistance in setting up the payroll for your Slovak company, you can rely on our local specialists.

How to set up the payroll in Slovakia

Nowadays, there are specific programs that can be used to enable Slovak payroll operations. These can be operated at the headquarters of the company or remotely, however, it is important to note that it is the employer’s obligation to maintain payment records for 5 to 50 years.

If you need assistance in setting up the payroll or support related to the provisions of the Employment Law, our specialists, among which our Slovak lawyers are at your disposal, so do not hesitate to contact us. We can also help you apply for Slovak residence permits for foreign employees.