Guide to hire Employees in Slovenia

Overview

Slovenia, located in central Europe, is a small yet dynamic country with just over two million people. The country has a highly educated and skilled talent pool, with 63.8% of the population aged 25 and over completing some form of tertiary education.

Slovenia strongly focuses on  STEM education, resulting in a highly skilled workforce in these fields.

The country's employment laws are governed by the Employment Relationships Act, which outlines the rights and obligations of both employees and employers.

Slovenia has a favourable business climate, with a low corporate tax rate of 19% and is a member of the European Union, making it an attractive location for businesses looking to expand into the European market. The top industries in Slovenia include services, wholesale trade, construction, manufacturing, retail trade, and tourism.

Capital                                                        Ljubljana

Languages spoken                                    Slovenian

Population size                                          2.107 million

Currency                                                    Euro (EUR)

VAT                                                             22%
 

For more economical al fiscal information about Slovenia, visit the dedicated section.

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Payroll and taxes in Slovenia

Compulsory social security insurance schemes apply to the whole population, and all employed people are included in the social security system. There are four social security insurance schemes: 

• Pension and  disability insurance

• Health insurance

• Unemployment insurance

• Maternity leave

Both employers and employees must pay social security contributions. The basis for both employer and employee is the amount of the gross salary (including fringe benefits, holiday payment if it exceeds 100% of the average Slovenian gross salary for a previous month and remuneration).

The following table highlights mandatory employer and employee contributions: 

Contribution Type        Employer Contribution    Employee Contribution

Social Security                                16.10%                            22.10%

Health Insurance                              6.36%                              6.36%

Unemployment Insurance                0.14%                              0.14%

Pension Insurance                            8.85%                            15.50%

Note that these percentages are based on the employee's gross salary. The contributions are paid directly to the relevant authorities by the employer. The contributions are subject to change, and it's recommended that companies consult with a local tax advisor or accountant to ensure adherence to employment compliance laws.

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Minimum wage in Slovenia

As of January 1, 2023, the minimum wage in Slovenia is €1,024 per month, based on a standard workweek of 40 hours. This rate applies to all employees, regardless of their age or level of education. It is worth noting that certain collective bargaining agreements may set higher minimum wages for specific industries or job roles.

Additionally, some employees may be eligible for other compensation, such as overtime pay or performance-based bonuses in addition to their basic salary, which can increase their overall earnings.

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Employee benefits in Slovenia

Mandatory benefits 

Pension insurance 
In Slovenia, there is a three-tier pension system. It is designed to provide a basic income for retirees, with additional contributions made to the second and third tiers providing additional retirement income. Employers and employees must understand their obligations and options within the pension insurance system to ensure adequate retirement savings. 

Tier                         Description Contribution      Employer   Employee

First Tier       A pay-as-you-go system,

              where current workers'

              contributions are used to fund

              the pensions of current retirees.                     8.85%       15.5% 

Second Tier  A mandatory funded

                   system, where contributions

                 are invested in individual accounts

                 managed by private pension funds.              5%        Voluntary 

Third Tier       A voluntary pension savings

                  system, where individuals can

                  save additional funds for their

                  retirement.                                               Voluntary       Voluntary 

Health insurance 
In Slovenia, all residents are required to have health insurance as a statutory provision, which is funded through a combination of employee and employer contributions, as well as government subsidies.

The public healthcare system in Slovenia provides a wide range of services, including primary care, specialist care, hospitalisation, and emergency services. 

Health services covered in this benefit are:

• Health programmes for children up to 18 years of age

• Family planning

• Occupational illnesses

• Malignant diseases

• Long-term nursing care

Employers are typically responsible for enrolling their employees in the public healthcare system and deducting the necessary contributions from their salaries. The amount of employee contributions is based on their gross salary and ranges from 6.36% to 13.13%, while employer contributions are fixed at 8.85%.

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Supplementary benefits

Other than the usual mandatory provisions, employers can offer additional perks and benefits as follows: 

Voluntary health insurance 
This can cover specialist examinations, private dental care, rehabilitation fees following an accident and specialist hospital treatment. 
Some employers also provide personal accident insurance, as well as travel health insurance, which covers medical treatments during business travel. 

Retirement
Employers can offer supplementary pension plans. In this instance, the employer can either fully or partially cover the insurance for their employees.

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Company perks 
Some of the most common company perks provided in Slovenia include:

• Company vehicles

• Fuel cards

• Performance-based bonuses

• Transportation allowances

• Financial bonuses

• Meal subsidies

• Training and development

• Discounts on company products

• Company mobile phones 

Unemployment benefits

In Slovenia, unemployment benefits are provided by the Employment Service of Slovenia to eligible individuals who have lost their jobs through no fault of their own. Following is some information on unemployment benefits in Slovenia: 

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Eligibility

Individuals who have worked and paid into the unemployment insurance system for at least nine months in the past two years

Benefits

Based on the individual's average earnings over the previous twelve months - Ranges from 50% to 80% of their average earnings

Job search requirement

Unemployed individuals must actively seek employment and participate in job search programs provided by the Employment Service of Slovenia

Maximum duration of benefits - Typically 24 months

Extension of benefits

Can be extended in certain circumstances

Family-Friendly Enterprise Certification (FFE)
In 2007, Slovenia launched a family-friendly certification scheme, which is based on the CSR principle of employee management cooperation. It places a great emphasis on work-life balance and is a long-term consultation process that offers a way to reconcile work and private life. More than 250 companies in Slovenia enter this certification.

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Working hours in Slovenia

The working week in Slovenia is 40 hours, which works out at eight hours per day from Monday to Friday. The maximum number of working hours per week is 48. Any hours worked above 40 per week are considered overtime and must be compensated higher than regular hours. Depending on the sector, the work day starts between 7 am and 9 am. 

According to the Employment Relationships Act, employees are entitled to at least one day of rest per week, typically Sunday. Additionally, employees are entitled to at least four weeks of paid vacation per year. The amount of annual vacation entitlement may increase based on the employee's length of service with the employer.

It's important to note that certain industries or professions may have different working hours and rest periods based on specific regulations or collective bargaining agreements. Employers should ensure that they are aware of their obligations under Slovenian labour law and that they comply with all regulations regarding working hours and rest periods.

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Types of leave available in Slovenia

Annual leave

Full-time and part-time employees are entitled to four weeks of annual leave per year.  
Slovenian law provides a pro-rata entitlement to annual leave for employees who have not worked for the full year. The amount of annual leave days for employees is calculated based on the employee's length of service during the calendar year. For example, if an employee has worked for six months in a year, they are entitled to two weeks of paid annual leave.
Employees over age 55, disabled employees and employees caring for a disabled child are entitled to an extra leave of up to three days. Staff members taking care of children have the right to one additional day of annual leave for every child under  15. 
Depending on how long an employee has worked at the company, they are also entitled to additional leave. This is as follows:

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Years of Service                            Additional Days of Leave

Three-five years                                             One

Six-ten years                                                  Two

11-15 years                                                    Four

16-20 years                                                    Five

21-25 years                                                    Six

Sickness leave

Employees are entitled to 80% of their salary if they cannot work due to sickness. In the event of an occupational illness or injury related to work, they are  entitled to receive their normal salary payment, calculated as an average of their salary over the previous three months. 
In the event of illness or injury, workers are entitled to be absent from work provided that they have provided a medical certificate to their employer, with no maximum amount of time prescribed by law. 
The employer pays salary compensation for absence from work lasting up to 30 work days from their funds.  The state refunds salary compensation paid for longer than 30 days (depending on the reason for and duration of the absence). 

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Maternity and paternity leave

To be entitled to maternity leave, which lasts for 105 days (15 weeks), the employee must have parental protection insurance. Mothers start their maternity leave 28 days before the expected date of delivery. In certain situations, such as if the child is born prematurely or has medical complications, the maternity leave may be extended for up to 365 days.

During maternity leave, the employee is entitled to receive maternity pay, equal to 100% of their average monthly salary in the three months before the start of the maternity leave. The maternity pay is provided by the employer for the first 15 weeks, after which the employee may be eligible to receive a maternity benefit from the national health insurance scheme.
Fathers are entitled to 30 days of paternity leave. They must take 15 days of paternity leave one month after the end of parental leave. They should receive compensation of 90% of their salary for these days. The other 15 days may be taken at any time between the end of parental leave and the end of the child’s first year at primary school.

During paternity leave, the employee is entitled to receive paternity pay equal to their average monthly salary in the three months before the start of the paternity leave.

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Parental leave

This may be taken by the mother or the father under certain conditions (each parent  is entitled to 130 days, and the mother can absorb the father’s 130 days as well, while the father can only absorb 100 days of the mother’s entitlement), or by another person after the end of maternity leave. It is intended for the provision of childcare and lasts 260 calendar days. This can be extended by an additional 90 working days if certain conditions are met, such as if the child has special needs or if the parents have more than one child under the age of three. 
During parental leave, the parent(s) is entitled to receive the parental allowance, a form of financial support provided by the national social security system. The amount of parental allowance is calculated based on the parent's average monthly salary in the three months before the start of the parental leave. It ranges from 100% to 50% of the average monthly salary depending on the length of the parental leave taken.
It's important to note that employers are not required to pay the parental allowance, but they are required to ensure that the employee's job is protected during the parental leave period. This means that the employee is entitled to return to their previous job or an equivalent position after the end of the parental leave.

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Public holidays in Slovenia

Slovenia observes the following public holidays*:

Holiday                                  Date                             Day

New Year's Day               January 1, 2023              Sunday

Prešeren Day

(Slovenian Culture Day)   February 8, 2023            Wednesday

Easter Sunday                  April 9, 2023                   Sunday

Easter Monday                 April 10, 2023                 Monday

Day of Uprising Against

Occupation (Resistance

Day)                                  April 27, 2023                 Thursday

Labour Day (May Day)     May 1, 2023                    Monday

Whit Sunday                     June 4, 2023                   Sunday

Statehood Day

(National Day)                  June 25, 2023                 Sunday

Assumption Day               August 15, 2023             Tuesday

Day of Slovenian

Independence and

Unity                                 October 25, 2023            Wednesday

All Saints' Day                  November 1, 2023           Wednesday

Christmas                         December 25, 2023         Monday

Independence and

Unity Day                          December 26, 2023        Tuesday

*Dates are correct for 2023

Background checks in Slovenia

While there are no legal requirements to conduct background checks in Slovenia, they are allowed as procedural requirements, such as pre-employment screening processes. Such checks typically entail reviewing the applicant's criminal record, credit and financial background and confirming their identity.

Employers must adhere to local laws and regulations relating to data privacy and protection while conducting these checks.

It is essential to obtain proper consent from the individual before performing any background screening. Adhering to these guidelines is critical for employers who want to conduct legally sound pre-employment background checks in Slovenia while maintaining personal data integrity.

Termination of employment in Slovenia

Notice period

In Slovenia, notice periods are determined by the Employment Relationships Act and depend on the length of service of the employee. The minimum notice period for an employee is 15 days, but longer notice periods may be agreed upon in the employment contract. 
The following table summarises the notice periods based on the length of service:

Length of Service                               Notice Period

Less than one year                                15 days

One-five years                                       30 days

Five-ten years                                        60 days

More than ten years                               90 days

It is important to note that notice periods may also be reduced or waived by mutual agreement between the employer and employee, according to the requirements for dismissal as stated in the employment agreement. Additionally, the employer may terminate the employment contract without notice in cases of a severe breach of contract by the employee.

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Probationary periods

Employers and employees can agree on a probationary period (typically three months) as part of the employment contract, but this cannot exceed six months. 

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Severance pay

If an employee has worked for an employer for at least one year and is terminated without just cause. The amount of severance pay is as follows: 

Period of Service                               Severance Pay

Less than one year                    No severance pay

One-ten years                           One average monthly salary

                                                  for each year of service

More than ten years                  One and a half average monthly

                                                  salaries for each year of service above ten

Note that the amount of severance pay is based on the average monthly salary for the past three months, and only applies in case of ordinary termination (dismissal for business reasons or the employer's fault). In cases of extraordinary termination (if the employee resigns or is terminated for misconduct), they are not entitled to severance pay.

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Termination of employment 

In cases of termination, the employer is required to provide the employee with a written explanation of the reasons for termination. Additionally, employees have the right to challenge their termination in court if they believe that their employment rights have been violated. 

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Retirement age in Slovenia

The minimum retirement age in Slovenia for both men and women is 65. 

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Do you need to hire employees in Slovenia?

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Talk to us

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Contact

Mrs. Emanuela Ferina

Head of Global Payroll

emanuela.ferina@studio-bcs.com

Phone 0039 0 363 360254​​​​​​​​​

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