The amended Labour Code introduced a new obligation for employers in the form of providing recreational vouchers and recreation allowances. An employer with more than 49 employees shall be obliged to provide employees who have been employed for at least 24 consecutive months and upon their request, with a recreation allowance of 55% of eligible costs, up to a total of €275 per calendar year. This means that an employee spends €500 or more a year in recreation, the employer shall contribute up to a maximum of €275. If an employee spends less than €500 on recreation, the employer shall provide a contribution up to 55% of the eligible costs.
The amended Income Tax Act states that if specific conditions are met as laid down in the Labour Code, the provided recreation allowance shall be considered as the employee’s income exempt from tax and will likewise be accepted as a tax-deductible expenditure for the employer.
A recreation voucher is a special means of payment issued by a limited provider that may be used in Slovakia with service providers in a contractual relationship with the limited provider issuing the recreation vouchers.
