Slovenia, a small country of central Europe, is an advanced, independent, and stable nation. The nation has been a member of the European Union since 2004 and also joined the Eurozone in 2007. The country has had an open market economy since its transition in the 2000s.
In the early days, the Slovenian economy was mainly based on services and trade. With the transition to an open market economy, the nation has experienced significant improvement in living standards in rural areas. A major portion of the economy has been privatized. In the current situation, the primary sources of income in the country are food processing, the manufacture of pharmaceuticals, automotive parts, and electrical appliances.
Overview of Slovenia
Population: 2.08 million.
GDP: 56.1 billion USD (FY20)
According to the Statistical Office of the Republic of Slovenia (SURS), the nation's economy has grown by 1.6% in the first quarter of 2021, and growth should accelerate from the 3rd and 4th quarter of the year as Covid-19 restrictions are eased. Already, an increase in public investment backed by the EU's Recovery Fund has been observed, leading to underpin growth over the coming years. Considering the economic recovery in Slovenia, the statistical bureau has forecasted real GDP growth of 4.5% in 2021.
Slovenia has a highly educated and skilled workforce. The nation also offers well-developed infrastructure and excellent connectivity as it is situated at a major transport crossroad. Though the level of foreign direct investment is not so high, a gradual increase is observed in the last few years. The nation has about 1.36 million working-age people, and about two-thirds of the working population is employed in services.
A brief glimpse of industries
- Slovenia’s association with the European Union (EU) provides both Asian and EU manufacturers and traders with faster and reliable trade routes that meet at fully equipped logistics centers.
- Slovenia’s trade market is dependent on other EU countries, mainly Italy and Germany. The economy of Slovenia is mainly dependent on foreign trade, and the earning is about 120% of GDP.
- The government has developed multiple policies and training programs to make the workforce employment-ready,
- The government is also working to boost the manufacturing sector to reduce unemployment, especially for women, elderly workers, and marginalized social groups.
- The primary industries in Slovenia are the food and beverage sector, wood products, textiles, chemicals and pharmaceuticals, automotive industry, ICT industry, medical devices, iron, and steel industry, etc.
- The average broadband internet connection speed in Slovenia is 108.47 Mbps. The average download speed in the nation is over 40 Mbps, and upload speed is 30 – 35 Mbps depending on the network connectivity.
Cost of living in Slovenia
Being a small country, the cost of living in Slovenia is quite similar throughout the nation. Like other nations, the urban areas are moderately expensive than rural areas. In general, the lifestyle and choice of accommodation are the keys to influence the living cost of individuals in Slovenia. House rent and utilities are pretty expensive in Slovenia as the country has relatively high standards. In addition, all the essential services like electricity, water, cooling, garbage services, internet services, everything is more expensive than most countries in Eastern Europe. The following table exhibits a general idea about the cost of living in Slovenia.
A Breakdown of the Average Living Cost in Slovenia
Salary structure for various roles
The following table represents the average annual salary of various sectors in Slovenia.
Cost of renting
The cost of rent may vary a lot depending on the location, type of apartment, furnished or unfurnished, etc. In most cities of the nation, the average house rent may vary up to € 150 – 250 depending on whether it is in the city center or outside of the city. Ljubljana, the capital of the nation, is the most expensive city in Slovenia. The following table represents the city-wise average salary and cost of living in Slovenia.
Your cost of living in Slovenia depends on your location
The top sectors that are expected to hire in Slovenia in 2021
Top Skills in Slovenia
If you are planning to establish an ICT business in Slovenia, it is the right place with a high level of developer talent. A high level of fluency in English and a pedigree of programming is the right combination available in the country's young workforce to be recruited. In addition, Slovenia's tech efficiency growth curve, especially in blockchain and ‘crypto,’ attracts foreigners to move here.
Apart from ICT, other industries hiring in Slovenia are:
- Wood industry
- Food processing
- Non-Metallic Mineral Sector
Top Skills City-wise Occupation-wise
Ljubljana is a place with a huge workforce with English fluency. This city offers most opportunities in the field of pharmaceuticals, petrochemicals, and food processing. Banking, finance, transport, construction, skilled trades, tourism are the other fields for job seekers.
Other prominent cities like Kamnika, Domzale, etc., are enriched with industries like meat processing, flour milling and baking, beverages production, milk processing, and export businesses.
Industrial cities like Kranj are engaged in businesses like automotive and export-oriented and produce steel products.
The increasing demand for quality healthcare products has pushed Slovenia to ensure the sector's continued growth. As a result, multiple cities have pharmaceutical companies in the nation.
When planning to employ people, hiring cost can be a crucial factor. The cost of hiring may vary in different locations of a country depending on the cost of living in a particular location, overall expenditure, and availability of required skill sets. Several expenses can impact your hiring project, like
- Cost for the interview process, screening process, etc.
- Onboarding cost
- Training cost
- Opportunity costs
Employment Laws in Slovenia
Being a part of the EU, all of the employment rules of the European Union are mandatory to follow in Slovenia. Slovenia's key source of employment law is the Employment Relationship Act, containing general labor relations and standard types of employment contracts.
The Collective Agreements Act and Representativeness of the Trade Unions Act govern collective bargaining relations. This agreement governs specific labor issues in each primary industry.
Apart from these two, other important acts are:
- Employment, Self-employment, and Work of Foreigners Act
- Vocational Rehabilitation and Employment of Persons with Disabilities Act
- Minimum Wage Act
- Prevention of Undeclared Work and Employment Act
- Work Safety Law
- Social Security Law
- General Data Protection Regulation
In case of hiring in Slovenia, the Employment contract must contain the following information:
- The contracting parties
- The date of commencement of work
- The title of the Job, along with the type of work
- Job location
- The type of contract (part-time / full-time)
- Working time
- The amount of basic salary
- The terms of payment
- Annual leave
- Duration of the notice period
- A reference to collective agreements
How Can Skuad Help You In Hiring in Slovenia?
Being a part of the EU, hiring in Slovenia is quite complicated and needs to meet multiple regulatory obligations. Instead of self-researching and acquiring in-depth knowledge of the laws, city-wise living cost, hiring costs, and so on, you can consider Skuad as your Employer of record partner. Skuad can be your one-stop solution to handle every aspect of recruitment and onboarding in Slovenia. With just one click of a button, all recruitment and workforce management will be handled with Skuad’s unified employment solution while you focus on your project and expansion plans without any further stresses—your workforce will be onboarded on time.