The relentless rise in food, energy and fuel prices is being felt many countries. Slovakia currently has the most expensive food among the V4 countries. Neighboring countries are fighting inflation by temporarily reducing VAT or capping prices. Slovakia is not yet planning to reduce VAT on food and fuel, however, the Ministry of Labour, Social Affairs and Family of the Slovak Republic has presented its proposal for measures to mitigate the impact of rising prices of goods and services. Below we summarize the changes effective from 1 May 2022.

Increase in meal allowance amounts

Restaurants and cafes as a result of the pandemic have been forced to increase prices due to the current trend in input prices, whether it is more expensive food, energy or even higher staff costs. The meal allowance amounts for business trips were last adjusted based on the food and non-alcoholic beverage price index for the month of February 2019. As the data from the Statistical Office of the Slovak Republic for the month of December 2021 showed, catering services in restaurants and cafes increased by 6.6% year-on-year. When comparing prices with the period of the last change, the amount of food service represents an increase of up to 17.5%.

Following the above-mentioned increase in the prices of food and services, the Ministry of Labour and Social Affairs of the Slovak Republic adjusts the amount of the meal allowance as follows:

• EUR 6 for the time duration from 5 to 12 hours,
• EUR 9 for the time duration over 12 hours and up to 18 hours,
• EUR 13.70 for the time duration over 18 hours.

Comparison of the meal allowance amounts applicable in 2022 with the increase applicable from 1 May 2022:

The increase in the amount of the meal allowance will also have an impact on the staff meal allowance, which is provided for by the Labour Code. The employer shall contribute at least 55 % of the cost of a meal and a maximum of 55 % of the meal allowance provided for a working trip of 5 to 12 hours. As a result of the increase in the amount of the meal allowance, the employer's contribution to the employee's meal allowance will be a maximum of EUR 3.30 (55% of EUR 6). Meals for employees may be further financed by the social fund and the employee's contribution.

More information on the taxation of employee meal allowances
Increase in basic travel allowances

If an employee uses his own motor vehicle for a business trip, he shall be entitled to basic compensation for each kilometer driven and to reimbursement for fuel consumed.

In this context, it is to increase the amount of the basic allowance for the use of motor vehicles as an entitlement for an employee sent on a business trip. Following the evolution of prices of items related to the use of motor vehicles, the amount of basic allowance for each kilometer of driving increased as follows, according to preliminary information:

• EUR 0.059 for single-track vehicles and tricycles,
• EUR 0.213 for passenger road motor vehicles.

Comparison of base compensation amounts in effect in 2022 with their increase valid from 1 May 2022

The above amounts are based on an assessment of the price index for items associated with the operation of motor vehicles for December 2021 compared to the month of January 2021, which was the basis for the most recent increase in the basic compensation amounts for the use of travel vehicles. According to data from the Statistical Office of the Slovak Republic, the prices of items related to the use of motor vehicles increased by 11.1% over the comparable period.

The measure from the Ministry of Labour and Social Affairs of the Slovak Republic concerning the new amounts of meal allowances and basic compensation for business travel was published in the Collection of Laws on 7 April 2022 and enters into force on 1 May 2022.

Source: Consumer Price Index in the Slovak Republic for December 2021, Statistical Office of the Slovak Republic