Nearshoring to Slovakia
With its highly productive and skilled labor force, Slovakia offers many nearshoring opportunities for companies wishing to benefit from the quality of its workforce at reduced costs. The renowned education system of Slovakia, which includes foreign languages at the core of its programs and produces over 38,000 university graduates every year contributes greatly to the caliber of the Slovak talent pool.
Businesses wishing to recruit the best Slovak talent can benefit from the simplified nearshoring services that FMC Group provides. FMC Group assists companies throughout the entire hiring process, but also afterward, by providing employees with the necessary infrastructure and tools for their work and handling the administrative side of their management. These services allow companies to easily and quickly access the Slovak talent pool, without the need to get familiarized with local laws and regulations.
- Advantages of Nearshoring to Slovakia
- FMC Group’s Nearshoring Approach
- Advantages of Nearshoring with FMC Group
- Labor Laws in Slovakia
- Working Hours
- Paid Vacation and Public Holidays
- Other Types of Leave
- Minimum Wage
- Social Contributions and Taxes
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Advantages of Nearshoring to Slovakia
- Slovakia has a highly productive and skilled labor force. It has the highest labor productivity (GDP per hours worked) in Central and Eastern Europe, at around USD 43.8.
- A large share of the Slovak workforce is employed in high technology manufacturing sectors and in knowledge-intensive services, which contributes to a high added value.
- Labor costs in Slovakia are among the lowest in Europe. In the IT sector, for instance, salaries of engineers are on average around EUR 2,000 gross per month. Meanwhile, the national average gross salary stands at only EUR 1,092.
- The Slovak workforce is one of the most educated in Europe. Around 91% of Slovaks aged 25 to 64 have at least secondary level qualification, compared to the EU average of 78%.
- The English language is taught in 95% of secondary schools in Slovakia. Other foreign languages that are taught in Slovak schools include German (40%), Russian (14%), and French (3%).
- Slovakia has a reputable higher education system composed of 34 universities from which 38,000 students graduate every year. The most popular fields of study among Slovak students are economics and business, IT, and technical programs.
FMC Group’s Nearshoring Approach
Selection and interviews
- Selection of the candidates that best match the client’s needs;
- Conduction of hiring interviews;
- Writing reports on the best candidates;
- Conduction of personality tests if requested.
- Presentation of interview results in video format to clients so they can make the hiring decision;
- Inviting candidates to work at FMC Group’s office in Slovakia.
- Handling of the administrative management of employees, including payments and leave monitoring;
- Functional management of employees done by the client;
- Provision of the infrastructure and tools needed by employees during their job.
Advantages of Nearshoring with FMC Group
- Tailored candidate search based on the client’s needs;
- Job advertisements on various platforms and search for matching candidates on FMC Group’s growing database;
- Conduction of the entire recruitment process from interviews to contract negotiations;
- Administrative management of the employees;
- No need for creating a local subsidiary in Slovakia.
Labor Laws in Slovakia
- The legal working hours limit in Slovakia is set at 40 hours per week and eight hours per day.
- Overtime work is paid at a rate of 125% of the normal pay on regular working days, 140% at night, 150% on Saturdays, and 200% on Sundays and public holidays.
Paid Vacation and Public Holidays
- Slovak employees can typically take up to four weeks of paid vacation every year, or five weeks if they are 33 years old or older.
- Dangerous, complex, and demanding jobs require eight weeks of annual paid vacation.
- Slovakia commemorates 14 public holidays:
- January 1st: New Year’s Day & Day of the Establishment of the Slovak Republic
- January 6th: Epiphany
- Between March and April: Good Friday & Easter Monday (moveable)
- May 1st: Labor Day
- May 8th: Day of Victory over Fascism
- July 5th: Cyril and Methodius Day
- August 29th: Slovak National Uprising Day
- September 1st: Constitution Day
- September 15th: Day of Our Lady of Sorrows
- November 1st: All Saints’ Day
- November 17th: Day of Freedom and Democracy
- December 24th – December 26th: Christmas Holiday
Other Types of Leave
- Maternity Leave: Women in Slovakia can normally take 34 weeks of paid maternity leave. Single mothers can take 37 weeks and mothers who give birth to more than one child can take 43 weeks. Pay during maternity leave is covered by Social Security at a rate of 75% of the regular salary.
- Paternity Leave: New fathers are entitled to 28 weeks of paid paternity leave if the mother is not receiving maternity benefits. The leave can be taken starting from six weeks after birth. The employee’s pay is covered by Social Security during paternity leave.
- Parental Leave: After the end of maternity and paternity leaves, one of the parents can take parental leave until the child is three years old, or six years old if the child suffers from a chronic illness. During parental leave, the employee receives a monthly allowance of EUR 280 or EUR 383 if they have previously received maternity benefits.
- Sick Leave: Slovak employees can take 10 days of sick leave per year that is covered by their employer. Sick pay equals 25% of the regular salary on the first three days and 55% from the fourth day onwards. After 10 days, pay becomes covered by Social Security at a rate of 55%. The maximal duration of paid sick leave varies according to the duration in which the employee has been contributing to social security.
- The national minimum wage in Slovakia is EUR 3.71 per hour and EUR 646 per month.
Social Contributions and Taxes
- Employers have to pay 25.2% of their employees’ gross salary as social contributions.
- Employees have to pay 9.4% of their gross salary as social contributions.
- Income tax in Slovakia is set at 19% for employees with an annual salary of EUR 38,553 or less, and 25% for employees with higher annual revenue.
Further Useful Information
- Please see Slovakia Ministry of Labor for more information on labor laws in Slovakia.