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Slovenia – Employer of Record

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Country Introduction – Slovenia

Capital – Ljubljana
Currency – Euro
GDP – $62.191 billion USD (2022)
People/Nationality- Slovenian
Language – Slovenian
Major Religion – Roman Catholic
Population – 2.11 million (2022)

Slovenia is a good place for businesses to trade and invest in because it is in a good location and has good roads and educated workers. In 1991, became its own country after separating from Yugoslavia. Since then, it has been doing really well in terms of money and having a good government. The people of Slovenia have also been able to live better lives.

The healthcare setup in Slovenia shares resemblances with that of numerous other European nations. The nation provides healthcare services that are financed through the collective health insurance funds collected by the government. As an EU citizen residing in Slovenia, you have the opportunity to utilize the state healthcare system without any charge, given that you present your European Health Card while seeking medical aid.

The National Education Institute of the Republic of Slovenia coordinates the regulation, delivery, and monitoring of education in Slovenia. The educational system operates akin to that of numerous other Central European countries where schooling is mandatory and free until the age of 16.

Slovenia, a hidden gem in Central Europe, is an ideal option for expats seeking an unspoiled environment, favorable weather, minimal criminal activity, and affordable living costs.

Contract of Employment

Employment contracts must be made in writing. When both parties have signed a contract, it is considered to have been finalized. The worker and the company owner. Work arrangements can take the form of either a fixed or open-ended employment contract, and can be either full or part-time.

Probation Period

The employer and employee have the option to establish a probationary phase, as per the employment agreement, limited to a maximum timeframe of six months.

Termination

The notice period for employees who have worked for the employer for two or more years will increase by two days for each year of service, up to a maximum of 60 days. If a collective bargaining agreement does not state otherwise, workers who have been employed for more than 25 years are entitled to a notice period of 80 days.

Working Hours

The usual Slovenian working schedule involves dedicating 8 hours per day, total of 40 working hours per week.

Overtime

Employees have the legal right to receive additional pay for overtime work, which is deemed as work done in exceptional circumstances. The determination of overtime pay is based on the agreement made by the branch collectively. Typically, the additional pay for working beyond regular business hours ranges from 130% to 150% of the employee’s standard hourly wage.

13^th Month Pay

In Slovenia, it is customary to receive a bonus known as the 13th salary. One is not legally obligated to provide it, but it’s viewed as a bonus: employees who’ve served for at least a year, up to a decade, are entitled to a gratuity worth 20% of their monthly wage.

Several workers receive an extra salary payment, commonly known as a Xmas bonus or 13th-month salary, in December. Certain employers provide a ‘Jubilee’ bonus to an employee in celebration of their work anniversary. Performance-based bonuses are a common occurrence.

Annual Leave

Typically, employees have the right to receive four weeks of compensated vacation time each year.

Employees aged 55 and older, those with disabilities, and those caring for a disabled child are eligible for up to three additional days of annual leave. Individuals responsible for the guardianship of minors are entitled to an extra day of vacation per child below the age of 15.

Seniority leave is subject to the length of service the employee is entitled to additional leave as shown below:

Sick leave

Employees who provide a medical document are generally granted unrestricted leave for sickness or injury. If the reason for being away from work is not because of an illness or injury related to work, the worker has the right to receive 80% of their salary from the previous month.

Maternity and Paternity Leave

Both mothers and fathers have the right to take a total of 260 days of parental leave, which can be divided equally between them as 130 days each. The period of parental leave is prolonged if there is a multiple birth, a premature birth, or a child requiring specialized attention.

VAT / GST:

The VAT Act in Slovenia adheres to the standards set by Directive 2006/112/EC. Taxed supplies are subject to a flat VAT rate of 22%.

Income Tax

In 2022, the tax rate in Slovenia underwent a reduction down to 45%. The highest percentage was 50, while the lowest recorded was 41.

Employer/ Employee Contributions

Social security contributions are paid by employees who work under an employment contract. At the time when employers withhold tax, the contributions are also subtracted from the gross salary. The contributions are deducted by the employer on behalf of the employee. Workers employed by companies operating within Slovenia are obligated to make contributions towards the nation’s social security program.

The structure of the contributions are the following:

Public Holidays

In Slovenia, public holidays fall into two categories – state holidays and days off from work.

State holidays are those that are observed in honor of occasions that hold significance within the state. Examples of these are events authorized by the government and displaying the emblem of the country through aerial maneuvers.

The former category consists of Catholic religious festivities that hold the same significance as a typical Sunday. As a consequence, businesses and educational institutions suspend operations, but no official ceremony is conducted.

January 1-2 – New Year’s Day
February 8 – Prešeren Day
April – Easter Sunday
April – Easter Monday
April – Day of Uprising Against Occupation
May 1-2 – Labor Day
June – White Sunday
June 25 – Statehood Day
August 15 – Assumption Day
October 31 – Reformation Day
December 25 – Christmas Day
December 26 – Independence Day and Unity Day

Although not declared as public holidays, there are various other festivities that are traditionally and widely observed by the Slovenian community.

Severance Pay

If an employee is employed for one to ten years, they are entitled to receive one-fifth of their basic monthly salary for each year of service. Employees who have worked for the company for over 10 years but less than 20 years are entitled to receive 25% of their basic monthly salary for each year of service.

Work and Residence Permits (Expatriates)

Foreign employees, who do not come from the member countries of the EU or EEA, are required to obtain a Single Work and Residence permit in order to be employed in Slovenia. This permit is sometimes referred to as a Single Permit. To obtain this permit, applicants will need to provide the following documents:

– An official passport that is legitimate or legal.

– During the application process, a person’s photograph and fingerprints will be captured for the purpose of obtaining a passport.

– Evidence of the candidate possessing health insurance in Slovenia is required.

– A recent investigation into the applicant’s criminal history from their country of origin has been conducted.

– An applicant needs to provide a statement from the bank indicating that they possess the required financial resources to sustain their stay in Slovenia.

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