Employer of Record Slovakia
Skuad's Slovakia Employer of Record (EOR) solution helps your business expand into Slovakia without the need for an entity setup. Our unified and automated global HR platform enables you to expedite the onboarding of your remote team, manage their payroll, benefits, etc. compliantly. We help you streamline the global expansion process with the able assistance of our international network.
Slovakia At A Glance
Population: 5.46 million
Capital city: Bratislava
Languages Spoken: Slovak Language, English, Russian, and German
GDP: 1.05 Billion USD
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Employment in Slovakia
What Must You Know Before Employing In Slovakia?
The Slovakia Employment Laws are quite similar to other countries. For setting up any business in Slovakia, you need to follow those laws. These laws apply to both Citizens and foreigners.
Let us understand the basic entitlements under Slovakia Labour Laws:
|Statutory working hours
||37.5 to 40 hours (5 days a week)
- A medical examination is conducted for those who are asked to work overnight a minimum of once per year.
- Overtime at night is only permitted in cases of serious need.
- Compensation at a usual hourly rate.
|Over 40 hours a week
||125% of regular salary
||150% of regular salary
||200% of Regular Salary
||140% of Regular Salary
|Paid Public Holidays
||These Holidays are considered a public holiday in Slovakia in 2021:
- The emergence of Slovakia/ New Year – January 1
- Epiphany – January 6
- Good Friday – April 2
- Easter Monday - April 18
- International Workers’ Day – May 1
- Day of Freedom from Fascism -May 8
- St. Cyril and Methodius Day- July 5
- Slovak National Uprising Day – August 29
- Day of the Constitution of the Slovak
- Republic- September 1
- Day of Our Lady of Sorrows – September 15
- All Saints’ Day – November 1
- Struggle for Freedom and Democracy Day – November 17
- Christmas Eve- December 24
- Christmas Day- December 25
- St. Stephen’s Day- December 26
||Vacation leave is granted based on several categories. However, the basic annual leave allowance is 4 weeks minimum. They are entitled to a full leave allowance after working for one year for the same employer.
The other categories are:
||Annual Leave entitlement
|33 years at the end of calendar years
|Employees with dangerous jobs and those who are parents
|Teachers, Head of Schools, other educators
||The Sick Leave allowance in Slovakia is quite vast and covers several areas.
On provision of the medical certificate, an employee is eligible for a paid sick leave in which the employer pays for the first 10 days.
|No. of Days
|1st Day – 3rd Day
||25% of the normal rate
|6th Day – 10th Day
||Increased to 55% of the normal rate
| 11th Day onwards
||55% of the normal rate from employees’ social security benefit
- Slovakia also provides leave in case a parent has to take care of their child below 10 years of age and other family members.
In some cases, 55% of the regular rate is provided from the employers’ social security benefits.
- 7 days of paid leave is also entitled to employees for medical examination and medical treatment per year.
Among one of the many employee health benefits, Slovakia grants maternity and paternity leaves based on several factors. The maternity leave of females are:
| Event of Multiple Births
The maternity leave begins 6 to 8 weeks before the due date. A notice must be provided to the employer before the beginning of maternity leaves.
- 75% of social security is provided to the mother, conditioned that the employee is covered under the social security scheme.
- A breastfeeding mother is eligible for 2 half-hour breaks for nursing till the child is 6 months old and following it one half-hour break.
- Parental leave may also be granted to the employee upon request or if a child is sick or medically degenerative.
|Annual Leave Accrual Entitlement
Usually, employees are entitled to four weeks of annual leave or holidays, and in some cases, like shift workers, they are entitled to five weeks annual leave.
||The unused leave continues till the next year but expires after the end of next year.
|Accrued Leave at termination
||The three cases which involve leaving days in the case of termination are:
|Leave Balance is Zero
||Work till employment end date is continued.
|Leave Balance is Higher than Zero
||Employees may decide to take leave or reimbursement.
|Leave Balance is Lower than Zero
||Wage Reduction in final salary based on the difference.
|Employee protection and Anti-Discrimination Rights
||Discrimination is prohibited by the Labour code in Slovakia. According to this Labour Code, equal treatment is provided to employees and jobseekers irrespective of their gender and other factors like remuneration, access to employment, working conditions, etc.
|Confidentiality of Personal Information
||Section 81 of Labour Law poses the legal obligation of an employee to maintain confidentiality in terms of facts and information during his work course.
To ensure your expansion endeavors are in compliance with the Slovakia employment laws, Contact Skuad today.
Contractors Vs. Full-time Employees
Contractors are dealt with differently than full-time employees in Slovakia. Under the Employment Contract Law, Slovakia, the contracts must be maintained in writing between the employers and the employees. A contract may be fixed or indefinite. A fixed contract is two years long with a duration explicitly stated, which could be extended or renewed twice within two years.
A contractor in Slovakia would provide you immense benefits like flexibility, self-payment of taxes, etc. It gives advantages like low tax maintenance, administration facilities, and the usage of specialized skills. They are hired individually for their expertise in specific areas.
Employees recruited Full-time are hired for their loyalty, commitment, and contribution to the company’s vision. They are entitled to the company’s employee benefits and work full time. Employment contracts in Slovakia have the following minimum inclusions:
- The Workplace
- Job Description
- Date of the communication of work
- Amount of salary and pay period
Learn more about Company agreements, Slovakia, and employment contracts Slovakia from our team of experts.
Hiring in Slovakia
Brands like ManPowerGroup, Grafton,Manuvia, ADECCO Slovakia, Maxim's Group, TRANSFER International Staff, etc., are some famous hiring companies in Slovakia. Hiring online might seem simple but it entails thorough background checks. The process can be made smooth by partnering with an EOR that can take care of all compliance regulations, background checks involving the hiring process. It also can expedite the hiring process through novel solutions like virtual onboarding and e-signing of documents.
At Skuad we believe in helping our clients most comprehensively. You can remain assured of us managing all functions like payroll, expense management, tax filing, and so on. We continually try to make it a better experience for both the company and the aspiring job applicant. Call us to know more about our hiring solutions and the process to hire employees in Slovakia
Probation & Termination
Probation & Termination are crucial aspects of the labor laws in Slovakia. The probationary period in Slovakia is based on the position of an employee. The initial standard probation period in Slovakia is around three months for executives. Managerial positions have a probation period of around six months.
|Notice for Termination of Employment, Slovakia
||The employment agreement can be terminated only if both parties agree to it in writing.
Therefore, the essentials of the termination are:
These are notice duration in Slovakia for different categories:
- Both parties mutually agree to it.
- Immediate termination in extreme scenarios
- Termination in probationary period by giving a notice of three days.
|In case no long notice is stipulated by labor code
|Employed for more than 1 year and less than 5 years
|Employed for at least five years
Learn more about the termination of services in Slovakia!
Business expansion is a long-drawn process that calls for extensive planning, especially when expanding to a foreign country. It is complicated and can take up to several months to complete but by choosing the EOR route for hiring employees in Slovakia, you can fast-track the expansion process. Employer of Record Slovakia (EOR) solutions by Skuad can make expansion to Slovakia much simpler and a lot quicker for business. Our global outreach and a tech-enriched HR platform ensure compliance with local labor laws by managing employment responsibilities such as monthly payroll, work permits, employment contracts as well as taxation for your employees in Slovakia. Book a demo with Skuad today.
General Employment of Record Services Terms
Taxes that apply to invoices
These are standard VAT Rates that are applied on different commodities in Slovakia:
||Applied to all taxable supplies
||Medical products, basic goods, and printed materials
||International passenger and intra-community transport
|Required Details & Documents
- Copy of Passport
- Bank Details
- Job Description
- Personal Information
- National Registration Identity Card
- Job Description
- Educational Qualifications
- Personal information
- Copy of passport
- Medical Exam results
- Copy of ID
- Technical Qualifications
- Bank Details
- Police Verification
To know more about EOR services terms, talk to our experts.
Outsourcing Employment Through An Employer Of Record
If you wish to expand your business in Slovakia, you can either use your in-house team or opt for an employer of record to manage your HR services, payroll, taxation, and employee circle. We can help you evaluate the pros and cons of both these options. Call us to know more.
Types of Visas in Slovakia
There are two categories of Visas for entering Slovakia. Different types of work visas are -
||This visa is typically valid for 90 days allowing you to do various activities relating to business, tourism, family, study, etc., without any residence or work permit.
These are the documents required for Slovakian Visa:
- Filled-up visa application (Hard copy)
- 2 photographs (light background)
- Valid passport for 3 months
- Previous visas copy with 2 blank pages
- Travel Visa insurance of minimum 30,000 euros coverage in Schengen Area
- Copy of Return ticket
- Cover letter including the reason for the visit
- Accommodation Proof
- Proof of civil status
- Flight itinerary status
- Proof of financial means for stay
||This visa is typically for those who wish to stay in the country for more than 90 days, either temporary or permanent.
For this visa, you should apply for a National D Type Visa, whose validity is for around one year.
- NOC from employer
- Income tax return form
- Employment contract
- Current bank statement (6 months)
- Copy of business license
- NOC from the employer
- Company’s previous 6 months bank statement
- Approval letter from the school
- Copy of fee receipt
- Enrolment Proof
- Pension statement of regular income by property generated in previous 6 months
In the case of a National visa, additional documents are also requested for the Slovakia Work Visa.
|Business Purpose Visa
||This type of visa is especially for those who wish to come for business purposes.
The Slovakia work visa requirements are:
- Slovakian company’s invitation with dates and address
- Certificate of business travel from employer
- Bank Statement (6 months)
- The total expense of stay stated on the invitation
- Proof showing earlier trade transactions between companies
- Memorandum and Article of Association (original copy).
- Trade License
- Partnership Documents
Learn More about different visas and the application process.
With Skuad as your Employer of Record, you can enjoy sponsorships for foreign workers by local partners. The table below answers pertinent questions about work permits in Slovakia.
Can Skuad Sponsor a work permit in Slovakia?
20 working days
Work permit process
- The employer should initially report job openings to the labor office for finding a suitable Slovakian citizen. Slovakia work permit for foreigners could be applied after 15 days.
- A Slovakia work permit without a job offer could be applied at the consulate in the residence or Slovakian embassy.
- However, for a work permit, Slovakia is known for employers filing work permits to the Ministry of Labor, Social Affairs, and Family in the Slovak Republic.
- The Ministry of Foreign and European Affairs issues residence permits afterward, which should be lodged by foreigners with a work permit while leaving their country.
- After the issuance of work and residence permits, an individual could work and freely travel in the Slovak Republic.
Passport must be submitted at the Labour Office along with the work permit.
Work permit validity
Work Permits are usually issued for 2 years based on international treaties. However, in the case of seasonal workers, it is issued for 90 days for 12 months.|
Work Permit Process for Different Countries
An individual must provide the work permit application and residence permit application to a consulate in their country of residence.
Change of Sponsor Within Slovakia
Not allowed, a new work permit must be applied.
|Where is the Application Processed?
||The application is either processed in the individual’s country of residence or Slovakia itself.
|What is the cost of a business visa?
|Duration of Business Visa Processing
||10 to 15 days
|Switch Business Visa to Work Permit?
||No, the work permit is non-transferable; therefore, a business visa could not be used.
|Can Spouses Work on Dependent Visas?
||No, the work permit is non-transferable.
|Termination of Work Permit
||A work permit is considered terminated if:
- Period expires
- Employment expires
- The permit of stay expires
- Termination owing to any other reason
Talk To Skuad Experts about your work permit requirements.
Things You Must Know To Set Up Payroll In Slovakia
Payroll & Taxes in Slovakia could be easily managed if you are aware of the rules and regulations in Slovakia.
Payroll includes the list of your company’s members and their due amounts. Therefore, the payroll consists of your national as well as international employees as well.
If you are not a local entity in Slovakia, managing these payrolls might be even more challenging due to a lack of knowledge about the team, employees, regulations, Slovakia employer payroll taxes, and many more. Therefore, to manage your payroll, you could either use payroll outsourcing in Slovakia or build an in-house team to handle such operations.
Skuad offers you the best services with expert guidance to minimize errors and maximize efficiency.
Taxes in Slovakia
|Individual income tax
The income taxes in Slovakia are applied at two rates:
When yearly income hits the 25% income tax bracket, a personal allowance of EUR 3,803.33 is discontinued.
|Income up to EUR 37,981.94
19% on income
|Income above EUR 37,981.94
||25% on income
||The tax return must be filed within the 6 months following the end of the tax period 31st March.
|Financial Year End Date
|| Corporate Tax Rate is levied at 21% of their corporate income.
- Interest: 19%
- Dividends: 7%
- Royalty: 19%
- Technical Services: 19%
|Employer’s Social Security and Statutory Contributions
|| The total contribution for employers is 35.2% of total wages and salaries, out of which 25.2% of social insurance contribution.
||The pension age is currently 62 years, 139 days, with a minimum of 15 years of contributions.
||Health insurance is 10% of the total 35.2% of total wages and salaries employer’s social security contribution.
Have queries about the taxation policy of Slovakia? Know more.
Incorporating a Holding company in Slovakia helps you to own special kinds of companies that do not interfere directly with operations but own stocks. The documents that need to be filed with Trade Register includes -
- Proof of Depositing the share capital
- Information about the shareholders
- The holding company’s statutory documents
- Proof of legal address in Slovakia
Know more about owning a holding company in Slovakia.
Professional Employer Organization (PEO)
A Professional Employer Organization is an organization that collaborates with medium and small-sized organizations to provide HR services. A PEO handles various HR services such as recruitment, payroll, training, and other compliances. An EOR also provides similar HR services; however, the difference lies in the arrangement or association between the EOR company and the business.
A PEO acts as your co-employer, whereas an EOR acts as the legal employer of your employees. It assumes all the responsibilities and liabilities of your remote team. You can outsource a specific HR function or end-to-end activities to an EOR. It allows you to expand your workforce without setting up a business entity. It handles payroll funding, worker’s compensation, and unemployment claims and reports. It files taxes under its file ID number. In other words, if you join hands with an employer of record, you are free from managing the human resources function during your business expansion.
Skuad's EOR solution is a good way to expand your business in Slovakia without setting up a separate entity. Our solutions help you to stay focused on your business and leave all business compliances, payroll processing and complete management work to us. Connect with Skuad to know more
Businesses looking to expand their workforce in promising regions may find Slovakia an attractive destination especially if you have an employer of record like Skuad as a partner. Its one-of-a-kind EOR solution lets you streamline and expedite your global expansion process. Book a demo with Skuad experts to know more.