SLOVAKIA: Annual Update – Labour Law Changes Expected in 2017

Social Insurance Contributions

Increased cap:  The amendment to the Act on Social Insurance increases the cap for the assessment base of social insurance contributions paid by both employer and employee. From January 1, 2017, the cap calculation is 7 times the average monthly wage (previously 5 times). The new cap for the assessment base amounts to €6,181.

Action required: Be aware of the change and ensure any internal practices and procedures are updated.

Employee Health Insurance

Removal of assessment cap: Currently, the cap for health insurance contributions paid by both employer and employee is calculated as 60 times the average monthly wage per year. The cap no longer applies as of January 1, 2017. This change will increase the financial burden for employers.

Action required: Be aware of the change and ensure any internal practices and procedures are updated.

Minimum wage

Increase in minimum pay: The minimum monthly wage is €435 and the minimum hourly wage is €2.5.

Effective from January 1, 2017.

Action required:

(1) Ensure payroll are aware of the change, and assess whether any staff are due increased pay.

(2) Ensure compliance with the new rate when offering employment.