The National Council of the Slovak Republic has approved a comprehensive draft law aimed at consolidating public finances by amending several legal regulations. This legislative package affects areas such as labour law, social insurance, taxation, health insurance, gambling, as well as environmental and mining law.
The draft law will come into effect on November 1, 2025, while the legislative changes concerning health and social insurance and personal income tax will first apply from January 1, 2026, taking into account the relevant transitional provisions in individual acts. The approved draft law is still awaiting signature by the President of the Slovak Republic.
The following article provides an Overview of the most important changes that will significantly affect employees, employers, and self-employed persons.
Labour Code: Stricter Rules Against “Fictitious Self-Employed Persons”
- The current wording of the Labour Code defines dependent work based on the simultaneous fulfilment of five characteristics.
- Dependent work is performed if all of the following conditions are met:
- under the relationship of subordination and superiority between employer and employee,
- personally by the employee for the employer,
- according to the employer’s instructions,
- on behalf of the employer,
- during working hours determined by the employer.
- The amendment removes the condition that work must be performed by the employee during the working hours determined by the employer. This provision has proven problematic since the Labour Code already allows employees a high degree of autonomy in organizing their working time. This inconsistency between the legal definition and real working practices could lead to disputes during labour inspections.
- Key attributes such as the relationship of superiority and subordination, the personal performance of work by employees for the employer, and the performance of work according to the employer's instructions and on their behalf will continue to be decisive in assessing whether an employment relationship exists.
Labour Code: Allowing Retail Sales on Selected Public Holidays
- Retail sales of goods will once again be allowed during selected public holidays.
- Stores will be permitted to open on the following days: January 6, Easter Monday, May 1, May 8, July 5, August 29, September 15, November 1, and November 17.
- On these days, employers may require employees to work in retail establishments.
Public Holidays: Permanent and Temporary Cancellations
- Starting in 2025, November 17 will no longer be a public holiday.
- In 2026, May 8 and September 15 will also temporarily lose their status as public holidays. This is only a temporary change.
- All these days will be considered regular working days.
Illegal Employment: Increased Penalties
- The new penalties are introduced to more effectively combat illegal employment and “fictitious self-employment.”
- The minimum penalty will increase from €2,000 to €4,000, and from €5,000 to €8,000 in the case of illegal employment of two or more persons. Reduction of the amount of the penalty imposed in the event of timely payment: if two-thirds of the penalty is paid within 15 days of the decision to impose the penalty becoming final, the penalty is considered to have been paid in full.
Social Insurance: Changes for the Self-Employed Persons and Adjustments to Benefits
- New definition of a self-employed person for social insurance purposes: The status of a self-employed person will now depend on formal authorization to perform activities, not on income from business and other self-employed activities. A self-employed person will be considered to be a natural person over the age of 18 who is either authorized to perform an activity (e.g., on the basis of a trade license) or performs an activity that does not require authorization and declares this fact by means of a statutory declaration (e.g., artists).
- A new rule is being introduced for the commencement of compulsory social insurance for SZČO from the first day of the sixth calendar month following the month in which the person obtained authorization to carry out the activity or from which they carry out gainful activity according to a statutory declaration in the case of activities that do not require authorization (notification obligation within 8 days of the occurrence of the event decisive for the commencement or termination of compulsory insurance). Termination of social insurance: The insurance expires on the date of expiry of the authorization or on the date specified in the affidavit of termination of activity. After its inception, it therefore continues uninterrupted until the formal termination of activity. If the activity is resumed within 60 months of its termination, compulsory insurance arises immediately.
Two methods for determining the assessment base for self-employed persons:
- Self-employed persons with income exceeding 50% of six times the average monthly wage in the economy two years ago (for 2026, this is €9,144): the assessment base will continue to be determined from their income tax base using a coefficient of 1.486.
- Other self-employed persons (new or with lower income): A fixed "special" assessment base of 26% of the average monthly wage in the economy two years ago (€396.24 for 2026) is introduced. Increase of the minimum assessment base from 50% to 60% of the average wage from two years prior (for the year 2026: €914.40). The new minimum social insurance contribution for self-employed persons will therefore be €303.11.
Social Insurance: Changes to Sick Pay for Employees during Temporary Incapacity for Work
- The employer’s obligation to pay wage compensation to an employee during temporary incapacity (sickness leave) will be extended from 10 to 14 calendar days.
- The Social Insurance Company will begin paying sickness benefits from the 15th day of incapacity.
- This change will take effect on April 1, 2026.
Social Insurance: Stricter Conditions for Paying Insurance Contributions
- The exemption from paying insurance contributions during temporary incapacity for work (sickness leave), care for a family member, or receipt of maternity benefits is abolished.
If an employee receives taxable income during such periods (e.g. a bonus related to previous work), social insurance contributions will now apply to that income.
Social Insurance: Freezing of the 13th Pension (2026–2028)
- The amount of the 13th old-age pension, early retirement pension, and disability pension (upon reaching retirement age) will be fixed at €667.30 for the years 2026–2028.
Social Insurance: Changes in Unemployment Benefits
- Gradual reduction of the unemployment benefit during the support period:
- Months 1–3: 50% of the daily assessment base
- Month 4: 40% of the daily assessment base
- Month 5: 30% of the daily assessment base
- Month 6: 20% of the daily assessment base
Model Example – Calculation of Unemployment Benefit Entitlement
An employee with an average gross monthly salary of €1,500.
The indicative daily assessment base (DVZ) for 2026 = €49.32.
Formula: applicable percentage × DVZ × number of days in the calendar month.
The monthly unemployment benefit entitlement depends on the number of days in the respective month.
|
Period
|
Benefit amount (30 days/month)
|
Benefit amount (31 days/month)
|
|
Months 1.–3.
|
€739.80
|
€764.40
|
|
Month 4.
|
€591.80
|
€611.60
|
|
Month 5.
|
€443.90
|
€458.70
|
|
Month 6.
|
€295.90
|
€305.80
|
Health Insurance: Increased Insurance Contribution Rate for Employees
- The health insurance contribution rate for individuals (employees, self-employed persons, self-payers) will increase by 1%, and for individuals with disability by 0.5%.
- Starting January 1, 2028, the rate for employers, self-employed, and self-payers will be reduced by 1%.
Overview of Health Insurance Contribution Rate Changes
|
Payer of Contributions
|
Rate until 31.12.2025
|
Rate from 01.01.2026 to 31.12.2027
|
|
Without disability
|
With disability
|
Without disability
|
With disability
|
|
Employee
|
4%
|
2%
|
5%
|
2.5%
|
|
Employer
|
11%
|
5.5%
|
11%
|
5.5%
|
|
Self-employed person
|
15%
|
7.5%
|
16%
|
8%
|
|
Self-payer
|
15%
|
7.5%
|
16%
|
8%
|
|
Payer of Contributions
|
Rate from 01.01.2028
|
|
Without disability
|
With disability
|
|
Employee
|
5%
|
2.5%
|
|
Employer
|
10%
|
5%
|
|
Self-employed person
|
15%
|
7.5%
|
|
Self-payer
|
15%
|
7.5%
|
Personal Income Tax: Adjusted Limits and Introduction of Progressive Taxation
- Adjustment of statutory limits for claiming the non-taxable allowance on the taxpayer and the spouse — to the disadvantage of individual taxpayers.
- The maximum annual tax base eligible for the full amount of the non-taxable allowance on the taxpayer is reduced from 92.8 times the subsistence minimum to 91.8 times, i.e. €26,083.13.
- In the year 2026, a taxpayer will be entitled to the full monthly non-taxable allowance if their monthly tax base is €2,173.59 or lower.
- Monthly non-taxable allowance: €497.23
- Annual non-taxable allowance: €5,966.73
- Without the amendment, the taxpayer would have been entitled to the full annual allowance up to an annual tax base of €26,367.26.
- Introduction of four progressive tax brackets for “above-average income earners”.
- The change will affect employees with a gross monthly salary of approximately €4,282 or more, who will be taxed at a combination of 19% and 25% income tax rates. Employees with a gross monthly salary of approximately €5,875 or more must also expect to be taxed at a rate of 30%, and taxation at a rate of 35% will affect employees with a gross monthly salary of approximately €7,302 or more. The above gross monthly salary amounts do not take into account the application of the tax-free portion of the tax base per taxpayer; these are only indicative figures.In the year 2025, personal income will be taxed based on two tax brackets, depending on the income level:
- 19% on income up to €48,441.43 (inclusive)
- 25% on income above €48,441.43
- The new personal income tax rates for the year 2026, based on the annual taxable income, are:
- 19% – up to €43,983.32 (inclusive)
- 25% – on income exceeding €43,983.32
- 30% – on income exceeding €60,349.21
- 35% – on income exceeding €75,010.32
- For self-employed persons ( earning over €100,000 annually, the same progressive tax brackets will apply as for employment income.
- The annual income settlement and tax return for the 2025 tax period will be subject to the legislation in force and effective as of December 31, 2025
Model Examples
Comparison of tax and insurance contribution burden for employees in the year 2025 vs the year 2026
(Non-taxable allowance not applied; all figures are indicative.)
A: Employee with a Gross Monthly Salary of €4,000
|
Period – Month
|
Calculation for 2025
Insurance Contributions: 13.4%
Tax Rates: 19%; 25%
|
Calculation for 2026
Insurance Contributions: 14.4%
Applied Tax Rates: 19%
|
|
Gross salary
|
€4,000
|
€4,000
|
|
Insurance contributions
|
€536
|
€576
|
|
Tax base
|
€3,464
|
€3,424
|
|
Income tax
|
€658
|
€651
|
|
Net salary
|
€2,806
|
€2,773
|
Financial impact:
Net salary in the year 2026 decreases by €33 per month compared to the year 2025.
B: Employee with a Gross Monthly Salary of €4,500
|
Period – Month
|
Calculation for 2025
Insurance Contributions: 13.4%
Tax Rates: 19%; 25%
|
Calculation for 2026
Insurance Contributions: 14.4%
Applied Tax Rates: 19%; 25%
|
|
Gross salary
|
€4,500
|
€4,500
|
|
Insurance contributions
|
€603
|
€648
|
|
Tax base
|
€3,897
|
€3,852
|
|
Income tax
|
€740
|
€743
|
|
Net salary
|
€3,156
|
€3,109
|
Financial impact:
Net salary in the year 2026 decreases by €47 per month compared to the year 2025.
C: Employee with a Gross Monthly Salary of €6,000
|
Period – Month
|
Calculation for 2025
Insurance Contributions: 13.4%
Tax Rates: 19%; 25%
|
Calculation for 2026
Insurance Contributions: 14.4%
Applied Tax Rates: 19%; 25%; 30%
|
|
Gross salary
|
€6,000
|
€6,000
|
|
Insurance contributions
|
€804
|
€864
|
|
Tax base
|
€5,196
|
€5,136
|
|
Income tax
|
€1,057
|
€1,069
|
|
Net salary
|
€4,139
|
€4,067
|
Financial impact:
Net salary in the year 2026 decreases by €72 per month compared to the year 2025.
D: Employee with a Gross Monthly Salary of €7,500
|
Period – Month
|
Calculation for 2025
Insurance Contributions: 13.4%
Tax Rates: 19%; 25%
|
Calculation for 2026
Insurance Contributions: 14.4%
Applied Tax Rates: 19%; 25%; 30%; 35%
|
|
Gross salary
|
€7,500
|
€7,500
|
|
Insurance contributions
|
€1,005
|
€1,080
|
|
Tax base
|
€6,495
|
€6,420
|
|
Income tax
|
€1,382
|
€1,463
|
|
Net salary
|
€5,113
|
€4,957
|
Financial impact:
Net salary in the year 2026 decreases by €156 per month compared to the year 2025.
