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In the next edition of our News Flash, we would like to inform you about the government-announced changes to the child tax benefit in Slovakia, which will come into effect from January 2025. These changes will have a negative impact on the net income of families.
Until the end of 2024, the child tax benefit in Slovakia is available for dependent children up to the age of 25. From January 2025, parents will only be entitled to the child tax benefit for children up to the age of 18, provided they meet the income criteria.
For children under 15, the basic child tax benefit will be EUR 100 per month, and for those between 15 and 18, it will be EUR 50 per month, provided the income criteria are met.
At the same time, the percentage limit from the partial tax base (ČZD), from which the maximum amount of the child tax benefit in Slovakia is calculated, is increasing. According to the number of children for which the taxpayer claims the child tax benefit, they will calculate the specified percentage of the ČZD (the partial tax base is calculated by deducting social contributions from the gross income). The income criteria from which the maximum amount of the child tax benefit for children is calculated are:
| Number of dependent children | Percentage limit from the partial tax base in 2024 | Percentage limit from the partial tax base in 2025 |
| 1 | 20% | 29% |
| 2 | 27% | 36% |
| 3 | 34% | 43% |
| 4 | 41% | 50% |
| 5 | 48% | 57% |
| 6 and more | 55% | 64% |
So, if the tax credit is claimed for 3 children, with a salary of, for example, EUR 1,500, the maximum tax credit in 2025 is calculated as follows: EUR 1,500 – EUR 201 (social contributions 13.4%) = EUR 1,299 x 43% = EUR 558.57. And according to the age of the children (e.g., if they are 5, 12, and 17 years old), we calculate the basic amounts of the tax credits: EUR 100 + EUR 100 + EUR 50 = EUR 250. The entitlement to the child tax credit will be EUR 250 per month, as the maximum amount of the tax credit is higher than the basic tax credit.
If the income is not high enough to reach the basic amount of child tax credits when filing a tax return for 2025 (not when requesting an annual tax settlement from the employer but when filing a Type A or B tax return to the tax office), the partial tax base of the spouse or the other entitled person can also be added and the tax credit can be claimed. From January 2025, it also ceases to apply, if a higher claim for a child tax credit was recognized during the tax period than will arise when recalculated in the annual tax settlement or tax return, then the claim does not expire and the difference between the paid tax credit and the actual claim will need to be returned. When calculating monthly tax prepayments, we only consider the partial tax base of the taxpayer who is claiming the tax credit. The partial tax base of the other entitled person is only taken into account when filing a tax return for 2025. On the other hand, a new maximum income for claiming a child tax credit is being introduced, which means a reduction or even loss of the entitlement to a child tax credit for taxpayers with high incomes according to Section 33 paragraph 11 of the Income Tax Act.
The table below provides several examples of reductions in child tax credits:
| Gross salary | Partial tax base | Difference between the partial tax base and 2145 | 1/10 of the difference | Child tax credit for children under 15 | Child tax credit for children aged 15-18 |
| 2,477 | 2,145.00 | 0 | 0 | 100 | 50 |
| 2,600 | 2,251.60 | 106.60 | 10.66 | 89.34 | 39.34 |
| 3,000 | 2,598.00 | 453.00 | 45.30 | 54.70 | 4.70 |
| 3,300 | 2,857.80 | 712.80 | 71.28 | 28.72 | 0.00 |
| 3,600 | 3,117.60 | 972.60 | 97.26 | 2.71 | 0.00 |
| 3,632 | 3,145.00 | 1,000.00 | 100.00 | 0.00 | 0.00 |
If the partial tax base is higher than 1.5 times the average monthly wage as determined by the Statistical Office of the Slovak Republic for 2023 (valid for 2025, for 2026 see the wage determined in 2024), the amount of the child tax credit shall be reduced by EUR 0.1 of the difference between the partial tax base and this 1.5 multiple of the average monthly wage. The average monthly wage in 2023 was EUR 1,430 and its 1.5 multiple is therefore EUR 2,145. If the annual partial tax base is higher than EUR 25,740 (18 * 1,430) – the entitlement to the child tax credit will be reduced. In the case of monthly application, the child tax credit will be reduced from a partial tax base of EUR 2,145 (1.5 * 1,430).
If a declaration is signed with the employer, the child tax credit is applied every month and the earnings are, for example, EUR 2,500 (gross), the partial tax base with standard deductions will be EUR 2,165, which is EUR 20 more than 1.5 times the average monthly wage. And 1/10 of these EUR 20 is EUR 2, which means that each child tax credit will be EUR 2 lower than its basic amount.
If the tax credit is claimed only in the annual tax settlement or by filing a tax return, we need to look at the annual income, i.e., 12 * EUR 2,500 (EUR 2,165) = EUR 30,000. The partial tax base will therefore be EUR 25,980. We subtract EUR 25,740 (12 * EUR 2,145) from it, which is EUR 240, and 1/10 of that is EUR 24. So the annual entitlement to the child tax credit will be:
By calculating in this way, we find out that if the gross monthly earnings exceed EUR 3,600, the entitlement to a child tax credit for a child of any age is zero. And if there are only children older than 15 years in the family, a gross income of EUR 3,055 is sufficient to have a zero tax credit, regardless of the number of dependent children in the family.
What happens if someone earns EUR 2,500 (gross) each month, claims the child tax credit monthly, but in December the employer surprises them with a Christmas bonus of EUR 3,000?
From the previous calculations, it’s clear that the child tax credit was claimed 11 times, each time reduced by EUR 2 per child. In December, therefore, no child tax credit will be granted in the payment (because EUR 2,500 salary + EUR 3,000 bonus minus EUR 737 social contributions minus EUR 2,145 (1.5 times the average monthly wage) = EUR 2,618, and 1/10 of that is EUR 216.80 by which the basic entitlement to the child tax credit must be reduced), so in December, the entitlement to the child tax credit for children will be zero euros.
But when it comes to the annual tax settlement or tax return, the calculation will be 12 * EUR 2,500 plus the bonus of EUR 3,000, which is EUR 33,000. After deducting social contributions, the partial tax base will be EUR 28,578. From this, we subtract 12 * 1.5 times the average monthly wage, which is EUR 25,740: EUR 28,578 – EUR 25,740 = EUR 2,838. One tenth of that is EUR 283.80, and this amount will reduce the annual entitlement to the child tax credit.
Since 11 * EUR 98 = EUR 1,078 was claimed during the year, but the entitlement was only EUR 916.20, EUR 161.80 must be refunded. If a tax credit for an older child was claimed 11 times at EUR 50, equaling EUR 550, but the entitlement was only EUR 316.20, then EUR 233.80 must be refunded.
If you’re claiming a child tax credit on a monthly basis, you need to take into account all sources of taxable income, including bonuses, overtime pay, and benefits-in-kind. This means considering any additional payments, perks, or advantages provided by your employer that have a monetary value.
Payroll in Slovakia plays a critical role in ensuring smooth business operations. For companies operating in the Slovak market, staying compliant with legal requirements is essential, especially as payroll regulations are updated several times a year. But proper payroll management is not just about compliance; it also impacts a company’s reputation and ability to retain top talent.
In the evolving business environment of Slovakia, companies need to adapt their payroll practices to meet modern expectations. This includes staying competitive with salaries, offering sought-after employee benefits, and providing flexibility, such as partial home office options when the nature of work allows. By prioritizing payroll in Slovakia as a strategic function, businesses can enhance employee satisfaction and strengthen their position in the market.
In this article, you will learn:
Payroll operations in Slovakia are primarily regulated by three key legislative instruments:
Slovak payroll laws change frequently, and several updates are coming in 2025:
For more details and other changes, read our full article on the amendments to the Income Tax Act in Slovakia.
Understanding the structure of payroll in Slovakia is essential for businesses to manage employee salaries effectively and remain compliant with local regulations. Payroll in Slovakia typically consists of a gross salary, additional components, and mandatory deductions.
In Slovakia, gross salary forms the foundation of payroll calculations. It includes the standard monthly salary, which covers compensation for worked hours as well as salary for absences, depending on the type of leave (e.g., sickness or parental leave). Additional components may include:
Employers in Slovakia are required to deduct specific amounts from employees’ gross salaries and contribute to social and public welfare systems. These mandatory deductions include:
Employers are also obligated to make their own contributions to social security and health insurance on behalf of their employees. These deductions and contributions form a significant part of payroll in Slovakia, and companies must ensure they are calculated accurately to meet legal requirements.
Managing payroll in Slovakia requires adherence to specific legal obligations, timelines, and reporting requirements to ensure compliance.
Salaries in Slovakia are typically calculated after the end of each month, with a 12-month payroll cycle. For example, January salaries are processed in February. Payments must be made by the date specified in employment contracts, alongside monthly reports to social insurance, health insurance, and tax offices.
Payslips must clearly outline:
Companies must submit payroll reports to social security, health insurance, and tax authorities monthly. Additional obligations may include reporting to pension funds and labor offices, particularly for companies with 20+ employees, regarding the employment of disabled persons or paying related fines.
Payroll and employee data are strictly confidential, requiring compliance with data protection regulations to safeguard sensitive information.
Outsourcing payroll in Slovakia offers businesses a strategic solution to simplify operations, save costs, and ensure compliance with complex local regulations.
For companies operating in Slovakia, payroll outsourcing delivers significant advantages:
For foreign businesses, understanding and adhering to Slovak payroll laws can be time-consuming and complex. Slovak payroll outsourcing providers act as both processors and advisors, proactively informing clients of their legal obligations and ensuring full compliance. This saves companies time and reduces the risk of errors or penalties.
When choosing a payroll provider in Slovakia, businesses should evaluate:
By partnering with a reliable provider, businesses gain access to expert support, ensuring smooth payroll management and compliance in Slovakia.
Managing payroll in Slovakia can be complex, particularly for foreign companies unfamiliar with local practices. One common challenge is adjusting to the country’s payroll deadlines. Salaries are typically calculated after the end of the month, as they rely on finalized attendance records – a system that may differ from what some international businesses are used to.
Compliance risks often stem from errors or delays in payroll processing. While errors can usually be corrected, missing payment deadlines or submitting inaccurate reports can lead to complications. The penalties for non-compliance vary significantly, ranging from minor fines to tens of thousands of euros, depending on the severity of the issue and the authority involved.
To avoid these challenges and risks, businesses must align their processes with Slovak payroll regulations and practices.
Navigating payroll in Slovakia requires more than just a basic understanding of wage calculations. The system is intricate, with some salary components calculated based on the base wage, others determined by the “holiday average” from the previous quarter, and certain elements impacting up to four subsequent quarters. Additionally, knowing which wage components are subject to taxes and contributions is crucial to maintaining compliance.
To ensure smooth and accurate payroll operations, businesses should partner with a trusted local expert. While service providers focus on completing tasks, a true payroll expert offers invaluable guidance. They ask the right questions, interpret legislation effectively, and provide strategic advice to achieve the best outcomes for the client. Their experience with a wide range of scenarios—gained through daily challenges in outsourcing—ensures they remain up-to-date and adaptable to any situation.
Choosing a proactive and knowledgeable partner, such as Accace, ensures not only compliance but also a proactive approach to payroll management that can adapt to Slovakia’s dynamic regulatory landscape.
The Ministry of Labour, family and social affairs of the Slovak Republic set a higher minimum wage in Slovakia for 2023. There was a monthly increase of EUR 54 for individual levels of work intensity compared to last year. An increase in the minimum wage also means an increase in bonuses and on-call time.
From January 1, 2023, the monthly minimum wage in Slovakia will increase from the current EUR 646 to EUR 700. The basic minimum hourly wage increases from EUR 3.713 to EUR 4.023 per hour for a working period of 40 hours per week.Example calculation of the minimum wage when working with the 1st degree of work intensity:
| Calculation of minimum wage in 2022 in EUR | Calculation of minimum wage in 2023 in EUR | Difference 2022 vs. 2023 in EUR | |
| Minimum wage amount | 646 | 700 | 54 |
| Social security – employee | 60.72 | 65.80 | 5.08 |
| Health insurance – employee * | 25.84 | 28 | 2.16 |
| Social security – employer | 162.79 | 176.4 | 13.61 |
| Health insurance – employer | 64.60 | 70 | 5.40 |
| Tax (when applying the non-taxable part of the tax base) | 33.79 | 37.23 | 3.44 |
| Labour cost | 873.39 | 946.4 | 73.01 |
| Net Wage | 525.65 | 568.97 | 43.32 |
The increase in the minimum wage entitlement for individual levels of work intensity increases by EUR 54. Keep in mind that when setting the remuneration, it is necessary to pay attention to the degree of work intensity for which position!
| Work Intensity Degree | Minimum wage claim 2022 in EUR | Minimum wage claim 2023 in EUR | Increase in 2023 compared to 2022 in EUR | Minimum hourly wage in 2023 in EUR 40h / week | Minimum hourly wage in 2023 in EUR 38.75h / week | Minimum hourly wage in 2023 in EUR 37.5h / week |
| 1 | 646 | 700 | 54 | 4.023 | 4.153 | 4.291 |
| 2 | 762 | 816 | 54 | 4.690 | 4.841 | 5.003 |
| 3 | 878 | 932 | 54 | 5.356 | 5.520 | 5.713 |
| 4 | 994 | 1048 | 54 | 6.023 | 6.217 | 6.425 |
| 5 | 1110 | 1164 | 54 | 6.690 | 6.906 | 7.136 |
| 6 | 1226 | 1280 | 54 | 7.356 | 7.593 | 7.846 |
Since 2021, surcharges have not been linked to a minimum wage in Slovakia, but are fixed. Their amount is decided by the government and the National Council of the Slovak Republic, and for 2023 they remain at the same level as in 2022.
Overview of surcharges:
| Type of surcharge | 2021 | 2022 | 2023 |
| Night shifts | EUR 1.43 | EUR 1.43 | EUR 1.43 |
| Saturday work | EUR 1.79 | EUR 1.79 | EUR 1.79 |
| Sunday work | EUR 3.58 | EUR 3.58 | EUR 3.58 |
| On-call duty (outside the workplace) | EUR 0.72 | EUR 0.72 | EUR 0.72 |
* The Labour Code provides for exceptions for lower surcharges
The holiday surcharge for employees is based on the average hourly earnings in the relevant period and is at least equal to the minimum hourly wage, EUR 4.023. Also, overtime pay is based on average hourly earnings.
In the case of a person working on a contract, the holiday pay is set at a minimum of EUR 3.58 per hour of work.
The non-taxable amount of the taxpayer increases to EUR 410.24 per month (EUR 4,992.82 per year). In order to claim the non-taxable amount on a monthly basis, it is necessary for the employee to sign a Declaration for the application of the non-taxable amount (hereinafter referred to as the “Declaration”). If the Declaration has already been signed, the non-taxable amount also applies automatically in 2023 and it is not necessary to sign the Declaration again.
If the employee’s total taxable income does not exceed EUR 2,461.41, the tax will not be levied and therefore will not be paid.
The maximum assessment base for social insurance increases from January 1, 2023 to the amount of EUR 8,477. It does not apply to accident and health insurance, which do not have a maximum assessment base.
The amount will not be always granted automatically to every employee’s child. The amount of the claim depends on the provided percentage of the income tax base according to the Section 5 of the Income Tax Act. The more children the employee has, the more the percentage limit increases (20% – 55%).
| Maximum amount of tax bonus in % from partial tax base | ||||||
| Number of children | 1 | 2 | 3 | 4 | 5 | 6 and more |
| A child under 18: 140 EUR | 20% | 27% | 34% | 41% | 48% | 55% |
| A child above 18: 50 EUR | ||||||
For an employee with a minimum wage of EUR 700 and 3 children under 15 years of age, we will calculate the maximum tax bonus by calculating the tax base (700 – 93.8) = 606.2.
We will calculate the amount of the maximum tax bonus, i.e., 606.20 * 34% (percentage for the number of children) = 206.11 EUR from the tax base.
Even though according to the age and number of children, the employee would be entitled to 3 * EUR 140 = EUR 420, the tax bonus will be a maximum of EUR 206.11.
Tax base of second parent (second authorized person) is considered only at the time of submitting the tax return for 2023 and the claim to the maximum possible amount of the tax bonus can be claimed through the filing of the tax return.
The subsistence minimum is a limit that sets the minimum livelihood in Slovakia. If a natural person falls below this limit, a state of emergency occurs. The change in an amount of the subsistence minimum in Slovakia this year, occurred on Wednesday, July 1, 2020 and its amount increased by EUR 5.13.
The amount of the subsistence minimum is adjusted annually based on recalculations of the growth coefficient of net cash income per person or growth coefficient of living cost of low-income households.
The amount of the subsistence minimum is determined by Act no. 601/2003 Coll. on the subsistence minimum and on the amendment of certain acts, as amended.
The subsistence minimum will increase this year by 2,2 % which is EUR 5.13. Increase in the amount of the subsistence minimum will also increase the tax bonus, the non-taxable part of the tax base, parental allowance and the minimum pension.
The current level of the subsistence minimum valid from July 1, 2020 to June 30, 2021 represents the amount of:
The subsistence minimum was adjusted on July 1, 2020 and in the run-up to this there are also other changes associated with it and will occur from January 1, 2021.
It all depends on which Act we consider and how this change is defined. In the case of income taxes, this shall be based on Act No. 595/2003 Coll. on income tax, as amended.
The individual amounts in the terms of the income tax will be valid from January 1, 2020 to December 31, 2021 and their amount will be:
The change in the amount of parental allowance and child allowance from January 1, 2021 to December 31, 2021:
The change in the amount of pension, remuneration of “unemployed” valid from July 1, 2020 to June 30, 2021:
Amendment of an act n. 311/2004 of Labour Code entered into force in Slovakia on January 1st, 2020. Its purpose is to support sports activities of children and youth. The employer’s role is to refund employee’s expenses in the form of voluntary allowances, which are connected to the regular sports activities of employee’s child.
According to a law, as a child is considered employee’s own child as well as a child in replacement care, a child in the custody before court’s final verdict about adoption or a child living with an employee in one household who is no more than 18 years old in the calendar year, in which the employee requests an allowance.
Following conditions should be taken into consideration:
As authorized expenses are considered evident expenses of the employee on sports activities provided by the authorized person.
As the authorized person is considered only a sports organization registered in the registry of legal persons in the field of sports that provides sports activity for a child in the charge of competent sport specialist.
As a sport organization is considered a legal person, whose main activity is organizing or providing sports activities. The person must be registered in the register of legal persons in the field of sports.
The employee must provide a proof concerning the authorized expenses on the sports activity of a child by providing a document not later than 30 days from its issue day.
The document must contain the name and the surname of the child and the period for which the document applies.
Once the conditions are met, the employer will provide the allowance on the child’s sports activity.
the allowance is exempt from taxes and other contributions for the employee and the employer, as well.
From 1 September, 2019, a novelty being a part of anti-bureaucracy law and relating specifically to the provision focusing on reducing the red tape by the use of the public administration’s information systems (IS) assumes effect. In this case, the bodies of state power when fulfilling their official duties are liable and entitled to obtain and use data registered in the public administration’s IS and also to provide such data to one another in essential scope. This affects the delivery of confirmations about school attendance in Slovakia.
The data for the assessment of the claim for the child allowances is provided in the following registers:
According to the provisions of the Act on child allowances the person entitled i.e. the allowance beneficiary is not obliged to prove the facts known to the payer from the performance of other activities of the payer or that it may obtain from an accessible public administration´s IS.
From 1 September 2019 the Office of Labour, Social Affairs and Family (hereinafter referred to as the “OLSAF“) obtains the data about children, pupils and students from the IS of the Ministry of Education, Science, Research and Sport of the Slovak Republic.
If an employer has the access to the Central Register of Children, Pupils and Undergraduates and Central Register of Students, from 1 December 2019 the following change of the Section 37 Subsection 3 of the Act No. 595/2003 on income tax will assume effect: an employee exercising the claim for a tax bonus from their employer according to the Section 33 of the Act on income tax will not be obliged to submit a confirmation from school or a confirmation of the relevant authority about receiving an allowance for a maintained child to an employer.
If an employer does not have the access provided, an employee exercising the claim for the tax bonus according to the Section 33 of the Act on income tax is still obliged to submit hardcopy confirmation of school attendance (applicable to children with the obligatory school attendance completed).
Thanks to this amendment major time saving and improving the efficiency of administrative work is expected as the beneficiaries of child allowances will not be obliged after 1 September 2019 to deliver confirmations about school attendance to the OLSAF in a hardcopy form.
The child allowance will from now on be paid automatically, namely within usual payday and in a usual method which is not changed. This method should remove the red tape burden especially from parents with children subject to obligatory school attendance.
The only exception when it is not possible to obtain the information from the IS of the Ministry of Education, Science, Research and Sport of the SR is if a child studies abroad. In such instance, the person entitled is still liable to submit a confirmation about the school attendance in a hardcopy form based on the request of the appropriate Labour Office.
About Accace
Accace is a proactive consultancy and outsourcing partner who bridges the gap between needs and solutions. Combining smart and streamlined technology with a holistic approach, we provide an all-round care to clients and consider their matters as our own. With over 800 experts and more than 2,000 customers, we have vast experience with facilitating the smooth operation and growth of small to large-scale, global businesses.
About Accace Circle
Accace operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 50 jurisdictions with nearly 2,500 professionals, we support more than 15,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 200,000 pay slips globally.
