Starting January 2018, a higher minimum wage was adopted in Slovakia with direct impact in wage allowance for weekend and night work. 2018 also means changes in calculation of: tax credit for children, personal allowance, social and health insurance – contributions and much more.
Check also the employment taxation changes for other CEE 4 countries(Czech Republic, Hungary, Poland and Slovakia) from our latest eBook: “Summary of the most significant changes affecting employment taxation in 5 CEE countries, 2018” .
Increase of minimum wage
The monthly minimum wage increased from EUR 435 to EUR 480. The minimum hourly wage increased from EUR 2.500 to EUR 2.759.
Wage allowance for weekend and night work
The increase of minimum wage also means an increase in the wage allowance for night work, weekend work and inactive standby duty, which are based on the minimum wage.
From May 1st 2018 the employee should be paid a wage allowance of at least 100% of the average wage for each hour of work on public holidays, 25% of minimum wage on Saturdays and 50% of minimum wage on Sundays. From May 1st 2018 the wage benefit for night work should also be increased by 30% of the minimum hourly wage.
Obligatory publishing of offered wage in job advertisements
As of May 1st 2018 the employer is obliged to publish in job advertisements the sum of the basic component of the wage. After the conclusion of the labour agreement, the employer is obliged to provide to employee at least the wage that was published in the related job advertisement.
Tax credit for children in 2018
From January 2018, the amount of tax credit for children is EUR 21.56 for a child per month, which means EUR 258.72 for a child per year.
Personal allowance in 2018
The (monthly) personal allowance is EUR 319.17 when calculating the tax advance.
Social Insurance – contributions
The maximum assessment base for the calculation of the contributions was increased to EUR 6,384 except for accident insurance.
Sickness benefit and income compensation for work inability
The maximum daily assessment base for the calculation of the sickness benefit is currently EUR 59.9672, and of income compensation for work inability it is EUR 59.9671.
Exemption from pension insurance contributions for working pensioners
From July 1 st, 2018 pensioners working on agreement are able to determine the agreement to which they apply the exemption from the payment of pension insurance contributions (old age, permanent disability insurance and payment of the contribution to the reserve solidarity fund). Pension insurance from the agreement is not paid, unless the monthly assessment base exceeds EUR 200.
Health insurance – contributions
The maximum assessment base is cancelled since 2017. The deductible item of payment is max. EUR 380 per month. Over EUR 380 per month it is reduced by double the gap between the income and EUR 380. In case of income from EUR 570 the deductible item is zero. From January 2018, it applies only to employees, in the case of employers it was cancelled.