Social security contributions in detail
The statutory contributions to be paid by the employer and employee consist of two types of contribution: one to health insurance and the other to social insurance. The health contribution paid by the employer represents 10% of the monthly remuneration of the employee. The employer’s contribution to social insurance represents, in all, 25.20% of the monthly salary of the employee. The overall contributions payable by the employer based on the above equate to 35.20% of the monthly pay of the employee.
The health contribution paid by the employee represents 4% of the monthly remuneration. The employee´s contribution to social insurance represents, in all, 9.40% of the monthly salary. The overall contributions payable by the employee based on the above equate to 13.40% of monthly pay.
The contribution rates are pre-defined and fixed based on the Slovak Social Insurance Act and Slovak Health Insurance Act. The contributions are paid out of the employee’s pay on a monthly basis.
Note that the threshold for liability to pay contributions is the minimum wage and there are caps on what the employer and employee need to pay for social insurance. Monthly earnings over seven times the official average salary in Slovakia (EUR 6,678) are not subject to social security contributions. Therefore, there is an overall cap for these, but health insurance is not capped.
Author: Nitschneider & Partners
Date: March 2019
Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.