mailingLeitner Slovakia – first quarter 2023

Dear Clients, dear Partners,

Our following mailingLeitner Slovakia focuses on a number of legislative amendments that has become applicable as of 1 January 2023, including social security provisions, income tax rules and some others. In part, the amendments can have impact on the amount of salaries payable to employees.

In particular, the list includes:

• Social security deductible contributions for students and pensioner
• Collection of analytical data for Social security agency
• Minimum premium for employee health insurance
• New amounts of Tax bonus for child
• Agreements on work activities for the performance of seasonal work

We would be happy to assist if you need more information.

We for you,

Roman Ponc & Veronika Krejčí

Social Security

The deduction for social security for students and pensioners (OOP) has been raised to EUR 200 per month. At the same time, social security deduction has been introduced for seasonal work activity (OOPSP) and fixed at EUR 605.50 per month. For the application of the deduction as from 1 January 2023, a written notification must have been submitted by 31 December 2022. In case of later submission, the OOP can be applied as from 1 February 2023 (i.e., the first day following the month of submission of the notification).

Collection of employee´s analytical data for social security
The amendment to the Social Insurance Act introduces a new obligation for the employer to report new data or codes in the employee registration form, namely place of work, scope of working hours and type of work performed. The new reporting obligation applies as from 1 January 2023. For active employees, the employer is obliged to report this data simultaneously and before submitting the monthly statement for January 2023.

The base amount for calculation of the pension, disability, sickness and unemployment insurance, the reserve fund and the guaranteed insurance has been raised from EUR 7,931 (in 2022) to EUR 8,477. The accident insurance shall still be calculated on an unlimited assessment base.

The daily base for calculation of the sickness benefit in 2023 has been fixed at EUR 2,422. Thus, the maximum daily assessment amounts to EUR 79.6274.

Insurance premiums during incapacity for work
Until 31 December 2022, the employee was not obliged to pay insurance premiums during the entire sick leave period. With effect of 1 January 2023, the employee is not obliged to pay insurance premiums for a maximum of 52 weeks of his sick leave such that the insurance is terminated afterwards.

Penalty waiver
According to the transitional provision with effect of 1 February 2023, Social office will waive the given penalty, which is linked to the premium due for the entire period before 1 July 2022, payable by 31 January 2023, if the premium due was paid in full by 31 August 2023.

The annual settlement of the social insurance, which should have been the responsibility of the employer as from 2023, has been removed from the legal rules.

Health Insurance Act

The health insurance shall be calculated on basis of the total amount of employment income, thus, without any limitations.

The maximum base amount for dividend payments for 2011 to 2016, which shall be made in 2023, is EUR 72,660 (60 times the average salary for 2021 = 60 x EUR 1,211).

Minimum employee premium for health insurance
The National Council of the Slovak Republic approved the introduction of the minimum insurance premiums for employees with effect of 1 January 2023. The employee must pay health insurance premiums calculated at least on basis of the amount of the living minimum valid as of 1 January 2023 (EUR 234.42), regardless the amount of income from the employer. The minimum premium does not apply to state insured persons (working pensioner, student, etc.) and employees with disabilities, for whom the premium is calculated without change.
In case of several employers or if the employee is simultaneously self-employed person, he can claim an exception from the application of the minimum advance payment by submitting a declaration to the employer.

The minimum advance payment for the insurance premium is EUR 32.81 per month.

Income Tax Act

The non-taxable amount for a taxpayer and tax rates

The non-taxable amount for 2023 is EUR 410.24 p.m. or EUR 4,922.82 p.a.

The individual income tax rate amounts to

• 19 % applied to the annual tax base lower than EUR 41,445.46 or EUR 3,453.79 p.m.
• 25 % applied to the annual tax base higher than EUR 41,445.46 or EUR 3,453.79 p.m.

The income tax shall not be levied and payable if it does not exceed EUR 17 or if the total income does not exceed EUR 2,461.41.

Tax bonus amounts to

• EUR 140 for a child under the age of 18
• EUR 50 for a child from 18 years of age

The final amount of the tax bonus depends on the partial tax base. When determining the amount of the tax bonus for a child, the partial tax base of the other parent is also considered but only when the tax return for 2023 is submitted. In addition, the entitlement to a tax bonus for a child under 18 years cannot be claimed if the child receives a subsidy for meals or lunches.

Minimum Wage and Minimum Wage Entitlements for 2023

With effect of 1 January 2023, the minimum monthly wage has increased to EUR 700. Thus, the value of the minimum hourly wage increases to EUR 4.023 per hour worked. The value applies to employees with an agreed weekly working time of 40 hours. If the employee has an agreed weekly working time of 38.75 hours or 37.5 hours, the minimum hourly wage will increase proportionately (EUR 4.153 – 38.75 hours/week, EUR 4.291 – 37.5 hours/week).

Amendments to the Labour Code

Agreements on work activities for the performance of seasonal work
With effect of 1 January 2023, the obligation to set up an agreement on the performance of seasonal work have been introduced. The scope of work can be up to 520 hours in a calendar year, while the average weekly working time for a maximum of 4 months must not exceed 40 hours. This agreement can be concluded for a maximum period of 8 months. Seasonal work is work that depends on the change of seasons, for example work in agriculture (e.g., picking vines, hops) or in tourism (e.g., running camps).

Allowance for state-supported rental housing
The National Council of the Slovak Republic approved Act No. 222/2022 Coll. on state support for rental housing including amendments to some other laws. With effect of 1 January 2023, a new Section 152c (Allowance for state-supported rental housing) was added to the Labour Code. If the conditions are met, the allowance is exempt from tax and contributions. Providing allowance to an employee is voluntary and does not create a legal claim. The amount of the allowance is EUR 4 per square meter of floor area of the apartment and at the same time EUR 360 per calendar month. The part of the allowance provided above the stated limit is taxable income of the employee.

Meal Allowance

With effect of 1 January 2023, the amount of the meal allowance has been re-adjusted as follows:

• EUR 6.80 for the time zone of 5 to 12 hours,
• EUR 10.10 for a time zone over 12 hours,
• EUR 15.30 for a time zone over 18 hours.

The maximum possible value of the meal voucher thus increases to EUR 5.10.
At the same time, the financial allowance for meals amounts to at least EUR 2.81 and EUR 3.74 at maximum. The amount of the financial contribution from the Social Fund is not limited.

The meal voucher or financial allowance for meals must be paid in advance.

At the same time, we may remind you that effective of 1 January 2023, the employer is obliged to provide meal vouchers to employees only in electronic form. An exception is only possible if the employee cannot use the meal voucher in electronic form during the work shift or near the workplace.

In case of questions, please do not hesitate to contact us.