Learn about mandatory and optional employee benefits in Slovakia
In Slovakia, a comprehensive social security system is mandated that provides a variety of benefits to employees. Employers contribute to this system alongside employees, ensuring a minimum level of security for the workforce.
Both employers and employees are required to contribute to Slovak social security. These contributions cover various social insurance programs, including:
The specific contribution rates are established annually.
Slovak labor law guarantees employees various paid leave entitlements, including:
While not mandatory by law, some employers in Slovakia offer a thirteenth or fourteenth-month pay as a bonus.
In Slovakia, employers often offer a range of attractive optional benefits to compete for top talent. These benefits are designed to enhance work-life balance, provide financial and security benefits, and promote health and wellness.
Flexible Work Arrangements: Many companies in Slovakia now offer home office options or flexible work hours, allowing employees to manage their work-life balance more effectively.
Additional Vacation Days: Some employers provide additional paid leave days, going beyond the standard minimum vacation allowance.
Company Car: A highly sought-after perk, some companies offer employees car benefits, allowing them to use a company vehicle for personal use as well.
Group Life/Accident Insurance: This benefit provides financial security to employees and their families in case of death or disability due to an accident.
Employee Discounts: Many companies offer their employees discounts on products or services related to their industry or other partner businesses.
Bonuses: Performance-based bonuses or anniversary bonuses can be a great financial motivator for employees.
Cafeteria or Meal Vouchers: Subsidized meals or meal vouchers can ease the burden of daily expenses and promote employee well-being.
Wellness Programs: Some companies may offer wellness programs that include gym memberships, fitness classes, or health screenings.
In Slovakia, public health insurance is mandatory for all employees with an employment contract, and it covers a wide range of medical services. This system ensures employees have access to necessary healthcare while working in the country.
In Slovakia, the retirement system is a multi-pillar structure, offering a combination of public and private plans to provide financial security for retirees.
The foundation of the Slovak retirement system is the mandatory public pension insurance. Both employers and employees contribute a percentage of the employee's gross salary to the Social Security Agency, which manages the public pension scheme. The current contribution rate for employees is 9% and 14% for employers (reduced to 9% if employing a disabled person). The amount of the public pension is calculated based on the employee's average earnings throughout their working career and the number of years of contributions. It typically replaces a portion (around 40%) of the pre-retirement income.
Introduced in 2004, the second pillar is a voluntary defined-contribution scheme offering employees the potential for a higher retirement income. Employees choose to opt into the second pillar by enrolling with a private pension fund management company. Employees contribute a portion of their salary (up to 9% of their gross wage) to their chosen pension fund, and the employer may also contribute a voluntary amount. The accumulated contributions and investment returns in the second pillar pension fund are paid out to the employee upon retirement as a lump sum or a monthly pension.
The third pillar is a completely voluntary, private savings plan that allows individuals to save for retirement independently. Individuals can contribute any amount they choose to a third-pillar pension product offered by banks, insurance companies, or investment firms. There are tax benefits associated with contributions to the third pillar. The accumulated savings and investment returns in the third pillar plan are paid out to the individual upon retirement or under certain circumstances specified in the contract, such as disability or critical illness.
We're here to help you on your global hiring journey.