Employee Leasing in Slovakia
Slovakia’s strategic location in the center of Europe and its integration into the EU make the country a highly-privileged destination for business expansion. The country’s infrastructures, its connectivity to major European economic hubs, and its friendly and welcoming business environment are encouraging for companies that are considering expanding into Central and Eastern Europe.
Employee leasing greatly simplifies and facilitates business expansion into Slovakia, allowing companies to hire local talent without setting up a local subsidiary. Moreover, the comprehensive services offered by FMC Group are not only limited to the recruitment process, but they extend to the full administrative management of employees. This gives companies the opportunity to focus exclusively on business decisions.
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- Advantages of Employee Leasing in Slovakia
- Employee Leasing Services Offered by FMC Group
- Advantages of the Slovak Market
- Recruitment in Slovakia
- Minimum Wage and Payroll
- Social Contributions and Taxes
- Working Hours and Overtime
- Vacation Days
- Parental Leave and Sick leave
- Notice Period
Advantages of Employee Leasing in Slovakia
- Expanding business activity into Slovakia through employee leasing helps companies quickly enter the EU market and benefit from all the advantages it offers.
- Outstaffing through employee leasing gives businesses much-needed flexibility when expanding into a new market, allowing them to gauge their potential as things progress.
- Employee leasing allows companies to fully benefit from the reduced labor costs that Slovakia offers. It also helps them save time and reduce investment risk.
- Employee leasing helps businesses focus on their growth strategy without batting an eye about the administrative management of their employees, as it is fully handled by FMC Group.
Employee Leasing Services Offered by FMC Group
- Preselection of candidates based on the client’s needs;
- Conduction of the entire recruitment process with the best candidates;
- Negotiation of employment contracts;
- Payment of taxes and social contributions;
- Management of the payroll according to international standards;
- Payment of miscellaneous expenses;
- Monitoring paid vacations;
- Implementation of private health insurance if needed;
- Maintaining constant communication with clients regarding employee management.
Management and Reporting Flow of Employee Leasing Services
Advantages of the Slovak Market
- Slovakia is located in the geographical center of Europe and is accessible from all major European economic hubs. Its EU membership also makes it fully integrated into a consumer market of over 440 million individuals.
- Slovakia is experiencing an ongoing economic expansion, driven by increasing domestic demand, as well as a rise in investments. The Slovak economy has been growing faster than the EU average since 2010.
- Slovakia is one of the few countries in Central and Eastern Europe that uses the Euro as its official currency, which contributes greatly to its macroeconomic stability. The country has very positive credit ratings from international agencies: “A+” according to Standard & Poor’s, “A” according to Fitch Ratings, and “A2” according to Moody’s.
- The Slovak infrastructure network is safe, reliable, and efficient. The country has a motorway network covering all of its regions and connecting it to the Czech Republic, Poland, Austria, and Hungary. Slovakia also boasts three major international airports with regular flights to all major European cities.
- The Slovak government is continuously working on improving Slovakia’s business environment and making it more accessible and friendly. Over the past few years, the country has introduced several reductions in corporate taxes, as well as many investment incentive schemes.
Recruitment in Slovakia
Minimum Wage and Payroll
- The minimum wage in Slovakia is set at EUR 3.71 per hour and EUR 646 per month.
- The payroll cycle in Slovakia is usually monthly, with wages paid on the last working day of each month.
Social Contributions and Taxes
|Old Age Pension||14.00%|
|Solidarity Reserve Fund||4.75%|
|Old Age Pension||4.00%|
|Employee Income Tax|
|Up to EUR 38,553 per year||19.00%|
|From EUR 38,553||25.00%|
Working Hours and Overtime
- Working hours in Slovakia cannot exceed eight hours per day and 40 hours per week.
- Overtime work during regular working days is paid at a rate of 125% of the regular salary.
- Overtime work performed at night is paid at 140% of the regular pay.
- Overtime work performed on Saturdays is paid at 150%.
- Overtime work performed on Sundays or public holidays is paid at 200%.
- Employees in Slovakia are normally entitled to four weeks of paid leave per year.
- The duration increases to five weeks for employees who are 33 years of age or older, and to eight weeks for employees with dangerous, complex, and demanding jobs.
- Slovakia celebrates 14 public holidays:
- New Year’s Day & Day of the Establishment of the Slovak Republic: January 1st
- Epiphany: January 6th
- Good Friday & Easter Monday: Between March and April (moveable)
- Labor Day: May 1st
- Day of Victory over Fascism: May 8th
- Cyril and Methodius Day: July 5th
- Slovak National Uprising Day: August 29th
- Constitution Day: September 1st
- Day of Our Lady of Sorrows: September 15th
- All Saints’ Day: November 1st
- Day of Freedom and Democracy: November 17th
- Christmas Holiday: December 24th – 26th
Parental Leave and Sick Leave
- Female employees in Slovakia are entitled to 34 weeks of paid maternity leave. The duration increases to 37 weeks if the mother is single and to 43 weeks in the case of multiple births. Social Security covers the employees’ pay during this period at a rate of 75% of the regular salary.
- If the mother is not receiving maternity benefits, the child’s father is entitled to 28 weeks of paid paternity leave beginning from when the newborn is six weeks old. Social Security covers the pay during this period.
- After maternity or paternity leave ends, one of the parents can request parental leave until the child becomes three years old, or six years old in the case of a long-term health condition. The parent receives an allowance of EUR 280 per month during this period. The allowance is increased to EUR 383 per month if the parent has previously received maternity benefits.
- The maximum duration of sick leave for employees in Slovakia depends on how long they have been contributing to Social Security. The first 10 days of sick leave are covered by the employer, at a rate of 25% of the regular salary for the first three days, then 55% between the fourth and 10th From the 11th day, pay is covered by Social Security at a rate of 55%.
- Employees wishing to quit their job have to give a one month’s notice if they have not yet completed one year of service for their employer.
- The notice period is increased to two months after one year of service.
Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.