Expand your organization into Slovakia with or without a Slovakian entity
Slovakia, officially known as the Slovak Republic, is an exciting country with a rich culture and a growing economy, making it a fantastic destination for foreign businesses to expand.
If your organization is planning an expansion into Slovakia, then you should be prepared for potential delays. The local regulations are often difficult to navigate, and the language and cultural differences can cause issues for those unfamiliar with the country and its customs.
At New Horizons, we offer a full suite of business services to help organizations expand into Slovakia. Our professional employer organization (PEO), payroll, and employ of record (EOR) services give you the ability to outsource all the difficult administration and compliance work so you can focus your efforts on a successful expansion.
As the only global PEO with an in-house recruitment team, we can also take care of the sourcing, hiring, and onboarding of your Slovakia workforce, along with any associated HR and legal compliance work. Our bespoke services can save you thousands in expansion costs.
Why choose New Horizons?
New Horizons enables your business to expand its operations into Slovakia, even without setting up a legal subsidiary.
Hiring in Slovakia: Employment law overview
Employment contracts in Slovakia
In Slovakia, it is a legal requirement to produce written contracts of employment for all of your employees. These contracts should be written in Slovakian, use the Euro currency, and include details such as salary, parental leave, vacation allowance, and any other relevant details.
Working hours in Slovakia
The normal working week in Slovakia is 40 hours. Including overtime, a week cannot usually exceed 52 hours.
Public holidays in Slovakia
Struggle for Human Rights Day
Easter Monday, Unfairly Prosecuted Persons Day
Anniversary of the Decease of M. R. Štefánik
End of World War II
Anniversary of the Memorandum of the Slovak Nation
St. Cyril & St. Methodius Day, Foreign Slovaks Day
Matice Slovenska Day
National Uprising Day
Day of the Victims of Holocaust and of racial violence
Day of Our Lady of Sorrows
Foundation of the Slovak National Council Day
Dukla Pass Victims Day
Černová Tragedy Day
Establishment of the Independent Czecho-Slovak State
Birth of Ľudovít Ŝtúr Day
Anniversary of the Declaration of the Slovak Nation
All Saints’ Day
Fight for Freedom and Democracy Day
St. Stephen’s Day
Day of the Declaration of Slovakia as an Independent Ecclesiastic Province
Vacation leave in Slovakia
Employees in Slovakia are usually provided with four weeks of paid vacation leave.
Sick leave in Slovakia
Employees in Slovakia are legally entitled to sick leave with pay. The amount of compensation varies, with the first three days of absence being covered at 25% of normal pay, days four to ten covered at 55% (paid by the employer), and days 11 onwards covered at 55% (paid by the government).
Parental leave in Slovakia
Mothers in Slovakia are entitled to 34 weeks of paid maternity leave (37 weeks for single mothers). This generally starts between six and eight weeks before the birth date, and at least 14 weeks of leave must be taken.
Male employees can usually take leave from the birth date until the mother returns to work, and the parents may be able to take parental leave until the child is three years old.
Terminations and severance in Slovakia
Employees in Slovakia are entitled to two months of notice upon termination. They may also be entitled to severance pay, for example, if they are made redundant, or if the company is dissolved.
The payment should be between four and ten times the average monthly earnings, depending on how long the employee has been with the company and the context of the termination.
Taxation in Slovakia
Employers in Slovakia must contribute 35.2% of salaries toward the country’s social security program. Employees are required to contribute 13.4%. The social security program funds things like sick pay, unemployment insurance, and healthcare.
The income tax rate in Slovakia is 19% to 25%, depending on income level.
The corporate tax rate in Slovakia is 21% for companies with revenues exceeding €100,000 per year.
Health coverage in Slovakia
Healthcare is provided by the Slovakian government, so health insurance is not required as part of employment benefits packages, but some employers may choose to provide it anyway.
Slovakia compensations & benefits
Compensation laws in Slovakia
The national minimum wage in Slovakia is €580 per month for full-time work.
Benefit management in Slovakia
Setting up your Slovakian benefits system as a foreign employer is a complicated process. The laws are complex, and various procedural differences need to be taken into account, which can make it a lengthy and expensive process.
Outsourcing your Slovakia benefits management to New Horizons is a fast, simple, and effective way to get everything up and running in full compliance with local laws.