Running Payroll in Slovakia

As a member of the European Union and the Eurozone, Slovakia offers an attractive environment for companies looking to expand into the EU single market. Its strategic location, skilled workforce, and stable economic framework make it a favorable destination for international employers.

However, businesses establishing operations in Slovakia must navigate specific local requirements related to employment and payroll. Although the Slovak tax system is relatively straightforward, payroll compliance involves careful coordination—particularly in relation to social security obligations.

In order to fulfill their payroll obligations (i.e. withholding and paying income tax and social security contributions on behalf of their employees), employers need to register with different local authorities. This includes:

Registration for tax purposes with the Financial Administration of the Slovak Republic – This must be completed within 30 days following incorporation or establishment of a local branch. The registration is done with the respective Tax Office, and the company is issued a tax identification number (DIČ) for payroll withholding purposes.

Registration for social security purposes with the local branch of the Social Insurance Agency (SIA) – Employers must register to obtain an employer identification number (IČZ). This registration must be completed no later than the day before the first employee begins work.

Registration with a health insurance provider – Employers are obligated to register with the health insurance company selected by the employee. Each employee chooses one of the authorized health insurance companies in Slovakia, and the employer must register with each respective provider accordingly.

Employees also need to be registered with both the Social Insurance Agency and the health insurance company. Registration with the Social Insurance Agency must be completed before the employee’s first working day. However, employers have up to 8 calendar days from the start of employment to register the employee with their chosen health insurance provider.

Foreign companies can register as employers in Slovakia without establishing a local legal entity or branch. The registration process is the same as for local companies except for the provisioning of the employer identity. Foreign employers must comply with all relevant Slovak labor, tax, and social security regulations. Payments to both employees and authorities can be issued from a foreign bank account.

Income tax in Slovakia operates under a two-tier system, with the threshold between the two tax rates adjusted regularly. Social security contributions are divided between the employee and employer, with the employer covering the majority of the costs.

Tax Considerations

The Slovak income tax system applies two progressive tax rates. For the 2025 tax year, employment income up to EUR 47,537.98 is subject to a 19% tax rate. Income exceeding this threshold is taxed at a 25% rate.

An employee’s taxable income includes all forms of compensation provided by the employer—such as base salary, bonuses, and benefits in kind. This includes non-cash benefits, unless specifically exempted. Special treatment applies to meal vouchers or employer-subsidized meals, which may be partially exempt within statutory limits.

A basic personal allowance is available to Slovak tax residents, with the amount depending on the level of annual income. Employees with annual taxable income up to EUR 25,426.27 can claim a personal allowance of EUR 5,753.79. For higher income levels, the personal allowance is reduced progressively according to a formula and is completely phased out for incomes above approximately EUR 48,441.43 (valid for the 2025 tax year). Additional tax relief may be available for employees supporting dependent spouses or children, subject to eligibility criteria.

Tax residency in Slovakia is determined by one or more of the following:

• The individual has a permanent residence in Slovakia;

• The individual spends more than 183 days in Slovakia during a calendar year;

• The individual has a habitual abode in Slovakia intended for permanent use.

Slovak tax residents are taxed on their worldwide income, while non-residents are taxed only on income sourced from Slovakia.

Tax Withholding and Reporting

Employers in Slovakia are obliged to withhold income tax at source on a monthly basis and remit the withheld amounts to the local tax authority by the fifth day of the following month after the payment of wages. A monthly payroll tax return (referred to as “hlásenie” for payroll tax advances) must be submitted by the end of the calendar month following the relevant pay period.

In addition to the monthly filings, employers must also submit an annual reconciliation report on withheld income tax for employees who meet certain conditions. This must generally be completed and submitted by the end of April following the close of the tax year.

The tax year in Slovakia corresponds to the calendar year. Individuals are only required to file a personal income tax return if they have received additional taxable income beyond regular employment (e.g., from business, rental, or foreign sources) or if they do not meet the conditions for employer-led reconciliation.

Personal income tax returns must generally be submitted by 31 March of the following year, although an automatic three-month extension (to 30 June) may be requested, particularly if the taxpayer has foreign income. Joint filing is not permitted under Slovak tax law.

Social Security Contributions

Social security contributions are shared between the employer and the employee. The employer is responsible for withholding the employee’s share during monthly payroll processing and for remitting the total amount—both employee and employer portions—to the respective institutions. The Slovak social insurance system covers sickness, old-age pensions, disability, unemployment, accident insurance, a solidarity reserve fund, and a wage guarantee fund.

As of 2025, the total employer share of social security and health insurance contributions totals 36.2% of the employee’s gross salary. This includes social insurance (24.4% – capped at the monthly assessment base of EUR 15,730), health insurance (11% – uncapped), and accident insurance (0.8% – uncapped). The employee’s share is 13.4%, made up of social insurance (9.4% – subject to the same cap as the employer's share) and health insurance (4% – uncapped).

Social insurance contributions must be paid to the Social Insurance Agency no later than the employee’s payday. Health insurance contributions must be paid to the employee’s selected health insurance provider by the third calendar day after payday.

A monthly report must be submitted to the Social Insurance Agency electronically, which is mandatory for all employers. A monthly report must also be submitted to each health insurance provider; this can be done in paper form or electronically, depending on the number of employees. Electronic submission is mandatory if the employer has more than ten employees. Both reports must be submitted by the same deadlines as the corresponding payments.

Employees in Slovakia are entitled to various benefits. These include:

• Annual leave and public holidays: 20 working days; 25 days for employees over 33 or with children; 15 public holidays

• Maternity leave: 34 weeks at 75% of salary (paid by Social Insurance); 37 weeks for single mothers; 43 weeks for multiple births

• Paternity leave: No separate entitlement; fathers can take over maternity leave under same conditions

• Parental leave: Until child turns 3

• Sick leave: Days 1–3: 25% (paid by employer); days 4–10: 55% (employer); from day 11: 55% (Social Insurance); max. 52 weeks

For more information on employee benefits and other employment requirements in Slovakia (including severance pay and termination procedures), check out our Global Hiring Guide.

At the beginning of 2025, the national minimum wage in Slovakia increased to EUR 816 per month. This corresponds to a minimum hourly wage of EUR 4.69. However, the actual minimum wage an employee is entitled to depends on the type of work they perform. Under the Slovak Labour Code, jobs are categorized into 6 levels based on the complexity of the work and the level of responsibility and qualifications required. The minimum monthly wage for employees in the highest category (Level 6) is EUR 1,396.

Overtime work must be paid at a rate of at least 125% of the employee’s regular hourly wage. Alternatively, it may be compensated with equivalent paid time off. Work performed on Sundays or public holidays must be compensated at double pay. There is no legal obligation to pay a 13th salary. However, employers are legally required to provide employees with daily meals, either through an in-house catering facility or in the form of meal vouchers.

Payroll in Slovakia is typically processed on a monthly basis. The pay date must be specified in the individual employment agreement. Salaries are to be paid in the local currency, Euro (EUR), with bank transfer being the most common payment method. After each payroll run, employers are required to provide employees with a detailed payslip, which can be distributed either electronically or in hard copy. Additionally, employers must maintain payroll records for each employee.