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We bring you an overview of the most significant legislative changes resulting from the Government-approved 3rd consolidation package in Slovakia. Some changes took effect as of November 1, 2025, while others will become effective starting in 2026. They mainly concern labour law, social and health insurance, income tax, and VAT. The changes will most impact self-employed individuals and employees, but legal entities will not be entirely unaffected either.
As of 1 January 2026, the criteria for determining whether a person qualifies as self-employed will fundamentally change. The decisive factor will no longer be the level of income, but the performance of the activity itself. Any individual over the age of 18 who either holds a business licence or carries out an independent activity based on a sworn declaration (e.g. artists, authors) will be classified as self-employed. The only exception applies to personal assistants for people with severe disabilities.
Mandatory insurance will automatically commence on the first day of the sixth month following the start of business activity. For existing self-employed persons, a transitional period will apply until 30 June 2026. From 1 July 2026, the new regime will apply to all. Interruptions of activity of up to 60 months will be considered a continuation of business; longer interruptions will trigger a new six-month waiting period.
The minimum contribution base will be increased to 60% of the average wage. In 2026, this will correspond to a minimum monthly contribution of € 303.11. A special contribution base equal to 26% of the average wage will be introduced for individuals with very low incomes. As a result, social insurance contributions will also become payable by self-employed people with minimal earnings (e.g. pensioners or those running small businesses alongside employment).
Employers will be responsible for covering sick pay during the first 14 days of sick leave (currently 10 days). Self-employed individuals paying sickness insurance will not be entitled to benefits during this initial period.
Unemployment benefits will gradually decrease from the fourth month of unemployment from 50% of the daily contribution base to 20% by the sixth month, in order to incentivise a faster return to the labour market.
As of 2026, the following increases in health insurance contribution rates will apply:
Minimum monthly prepayments for self-employed people will increase by approximately €7.60. For employees on the minimum wage, the increase will amount to roughly €9 per month.
A progressive personal income tax system will be adjusted from 2026, with four tax brackets set at 19%, 25%, 30% and 35%, depending on the taxable base. At the same time, the rules for reducing non-taxable allowances (for taxpayer and spouse) will change. Reductions will take effect earlier and progress more rapidly, resulting in a higher tax burden for middle- and higher-income earners.
The special tax rate applicable to constitutional officials will increase from 5% to 10%.
A higher minimum corporate income tax will be introduced for companies with an annual turnover exceeding €5 million, set at €11,520 per taxable period. This will apply for the first time for the 2026 tax period.
The period for claiming investment deductions will be extended from six to nine years, allowing businesses greater flexibility in their investment planning. However, this measure is not widely used in practice.
From 2026, businesses will be allowed to apply a flat-rate VAT deduction of 50% without maintaining mileage records. This rule will also apply to related expenses (fuel, maintenance). For vehicles used exclusively for business purposes, a 100% VAT deduction will remain possible, but will be subject to stricter documentation requirements.
The current flat 80% VAT deduction for fuel without mileage logbook will be abolished. A single rule providing for a 50% flat deduction will apply instead.
The reduced VAT rate of 19% will no longer apply to food products with high sugar and salt content. These will be taxed at the standard rate of 23%.
Between 1 January and 30 June 2026, taxpayers will have the opportunity to settle outstanding tax liabilities without incurring penalties or late-payment interest. If taxes recorded as of 30 September 2025 are paid within this period, the state will waive the related fines and interest. This measure applies to personal and corporate income tax, VAT, excise duties, motor vehicle tax, insurance tax, and the tax on sweetened beverages. The amnesty aims to encourage taxpayers to regularise their tax obligations and was introduced by regulation effective from 1 October 2025.
The definition of dependent work is known to every employer. It is work performed in a relationship of superiority of the employer and subordination of the employee, personally by the employee for the employer, according to the instructions of the employer, on its behalf, during working hours determined by the employer.
However, due to consolidation measures the last part of it is deleted, namely “during the working hours determined by the employer”. At first glance, an inconspicuous change, but one that will have significant impacts.
Its purpose is to prevent circumvention of the Labour Code through the so-called Schwarz system, i.e. the use of the work of sole traders or one-person LLCs instead of employees. In many cases where a labour inspection was carried out, it was found that the work of a self-employed person practically fulfils all the conceptual features of dependent work – the self-employed person worked for only one company, often on its equipment, he was provided with benefits as an ordinary employee, he had his superior from among ordinary employees who assigned him work, or he was even a former employee who switched to self-employment, but the content of his work practically did not change, and so on. Therefore, everything indicated that the company should have employed the person in question and not entered into a commercial relationship with him. The only and main argument used by companies in such cases was that the self-employed person does not work during the working hours determined by the company but decides by himself when he performs the work.
The amendment in question is intended to prevent this situation and support the effectiveness of inspections by labour inspectorates against the Schwarz system. At the same time, it is intended to encourage employers to allow employees to determine their working hours according to their own needs and to focus more on whether employees perform their work tasks, i.e. monitor performance rather than whether they sit at work from 9 a.m. to 5 p.m. It is therefore possible to assume an increase in inspections, which may be alarming in connection with the change in the amount of fines, as we present below in the article.
In 2017, the amendment to the Labour Code banned retail sales during holidays and non-working days. Probably many people remember the wave of resentment that rose then. Paradoxically, the same ruling party that introduced this ban is now lifting it. So, we are returning to the situation before June 2017. The only holiday that escaped this change is the second Christmas holiday (December 26).
Otherwise, the ban on retail sales is lifted for January 6, Easter Monday, May 1, May 8, July 5, August 29, September 15, November 1 and November 17, during which we can go shopping again. For retail employees, this means that they will lose up to 9 days off a year, during which they were entitled to wage compensation. They will now have to work these days properly.
In the case of employees’ incapacity to work, the employer paid them wage compensation for the first ten days and the Social Insurance Agency from the 11th day. Since it was common for an employee to be at home for two weeks and thus also benefited from the support of the Social Insurance Agency, consolidation transfers this burden of wage compensation back to the employer, because it extends the period during which it is supposed to compensate employees for up to 14 days. The Social Insurance Agency will therefore provide income compensation only from the 15th day of sick leave.
The change will also affect the self-employed persons, who, if they also pay for sickness insurance, will not actually see anything from the Social Insurance Agency for the first 14 days.
However, this change does not take effect until January 1, 2026, so until then it will be “in the old regime”. If it happens that the employee will be on sick leave, for example, from 29 December to 9 January, such a situation will also be governed by the original legislation, and therefore the employer will bear the costs of the given sick leave only for the first 10 days.
The consolidation did not bypass public holidays. Last year, we already lost September 1st. This time, however, the cancellation affects several days. The Day of the Struggle for Freedom and Democracy – November 17 – is permanently cancelled as a holiday. This change will affect us already this year, so we will lose one long weekend.
At the same time, the Day of Victory over Fascism – May 8 and the Feast of Our Lady of Sorrows – September 15 is cancelled as non-working days for 2026 (for the time being). On the given days, employees will therefore be obliged to come to work properly.
A great wave of resentment has risen over the total cancellation of November 17 as a public holiday, and many are calling for a general strike. Citizens of the Slovak Republic have the right to participate in it under the Constitution. However, consolidation also thought about this. If you take part in a general strike, you must register with the health insurance company as a self-payer for the day and no contributions are paid to the Social Insurance Agency, which means that the day will not be taken into account for the calculation of the assessment base for social benefits. At the same time, it should be remembered that although the employer is obliged to justify the employee’s absence from work for the time of his participation in the strike in connection with the exercise of his economic and social rights, neither wage nor wage compensation is due to the employee. In the event that the court subsequently declares the strike illegal, participation in it is considered an unexcused absence of the employee from work.
Until now, a uniform meal allowance rate has been set for all employees travelling to a specific country for foreign business trips. After the amendment, the Ministry of Finance may introduce for foreign businesstrips special meal allowance rates for certain groups of employees and certain countries, which will be higher than the basic meal allowance rates under the general measure. In connection with this, however, it is added that in the case of an employee sent to perform work in the provision of services in an EU Member State to which a special basic meal allowance rate applies, the meal allowance can be reduced by up to 25%. As the change is linked to a measure of the Ministry of Finance, it is not yet known which countries and sectors of the economy will be affected.
As a result of consolidation, the lower limit of the fine is increasedfrom EUR 2,000 to EUR 4,000 for a violation of the prohibition of illegal employment, and in the case of illegal employment of two or more natural persons at the same time, the lower limit of the fine is increased from EUR 5,000 to EUR 8,000. This means that employers who violate the prohibition, whether intentionally or unintentionally (e.g., they report an employee to the Social Insurance Agency late due to human error), will pay more. On the other hand, however, a form of motivation is being introduced for employers to pay fines as soon as possible. According to the amendment, if the debtor pays two-thirds of the imposed amount of the fine within 15 days after the decision to impose a fine becomes final, the fine is considered to have been paid in full, i.e. the rest will be automatically forgiven.
The reforms entering into force in 2026 represent another far-reaching amendment to the tax and contribution and labour law systems. They will have a significant impact on self-employed people, in particular through the abolition of contribution holidays and increases in minimum contributions, will increase the progressivity of personal income taxation, and will introduce both simplifications and new restrictions in the area of VAT.
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