The National Council of the Slovak Republic approved Act No. 63/2018 Coll. as an amendment of Act No. 311/2001 Coll., the Labour Code, as amended, on 14 February 2018. This amendment of the Labour Code, which enters into force on 1 May 2018, results in several changes concerning employment.
The most significant change beginning 1 May 2018 is an increase in the premiums paid to employees for work at night, on holidays and on weekends. The premiums are set to increase in two phases, from 1 May 2018 to 1 May 2019 and there will be multiple exceptions for employers where night work is the primary form of work.
The increase of these premiums for work mean increased costs for employers.
Some employees will see a rise on their payslips beginning on 1 May 2018 with the approval of the amendment to the Labour Code, which increases the premiums for work at night, on holidays and on weekends. The increase in premiums (except for holiday premiums) will be implemented in two phases. The first phase begins on 1 May 2018 and the second follows on 1 May 2019. The premiums for work at night differ depending on if a hazardous profession is performed or not.
How premiums increase for work at night, on weekends and during holidays beginning 1 May 2018 and 1 May 2019
The following brief overview of the premiums for individual types shows:
Premiums for work are defined as percentages and are derived from the minimum hourly wage (calculated from a minimum wage of €480 in our table at the 1st level of work intensity). The actual increase in the hourly wage in Euros with the given premium. The amount presented is the minimum of the premium for every such employee regardless of work intensity level (except for work at night performed by hazardous professions, which have higher premiums). Of course, employers may offer employees higher premiums. These premiums involve all employees working under standard employment contracts, work agreements and public-sector employees.
Premiums for night work beginning 1 May 2018 and 1 May 2019
| As at 30 April 2018 | From 1 May 2018 | From 1 May 2019 | |
| Non-hazardous occupations | 20% (€0.5518 per hour) | 30% (€0.8277 per hour) | 40% (€1.1036 per hour) |
| Hazardous occupations | 20% (€0.5518 per hour) | 35% (€0.9656 per hour) | 50% (€1.3795 per hour) |
Premiums for work on holidays beginning 1 May 2018
| As at 30 April 2018 | From 1 May 2018 |
| 50% (€1.3795 per hour) | 100% (€2.7590 per hour) |
Premium for work on Saturdays beginning 1 May 2018 and 1 May 2019
| As at 30 April 2018 | From 1 May 2018 | From 1 May 2019 |
| 0% | 25% (€0.6897 per hour) | 50% (€1.3795 per hour) |
Premium for work on Sundays from 1 May 2018 and 1 May 2019
| As at 30 April 2018 | From 1 May 2018 | From 1 May 2019 |
| 0% | 50% (€1.3795 per hour) | 100% (€2.7590 per hour) |
Minimum wage effective 1 January 2018
The Slovak government approved an increase in the minimum wage effective 1 January 2018 to €480 per month for employees who earn a monthly salary at the 1st level of work intensity.
Under Act No. 663/2007 Coll. on the Minimum Wage, as amended, the minimum hourly wage represents 1/174th of the total monthly minimum wage for each hour worked by the employee. The hourly minimum wage at the 1st level of work intensity is set to €2.7590 for 2018. The minimum wage for 2018 is €480 for the 1st level of work intensity and it is used to determine the minimum salary amounts for other levels of work intensity. These rates are determined by multiplying the minimum wage at the 1st level of work intensity by the minimum wage coefficient assigned to the specific level of work intensity.
Minimum wage in 2018 for individual levels of work intensity
| 40-hour work week | |||
| Level of intensity | Minimum wage coefficient | Minimum wage | |
| hourly | monthly | ||
| 1 | 1.0 | 2.7590 | 480.00 |
| 2 | 1.2 | 3.3108 | 576.00 |
| 3 | 1.4 | 3.8626 | 672.00 |
| 4 | 1.6 | 4.4144 | 768.00 |
| 5 | 1.8 | 4.9662 | 864.00 |
| 6 | 2.0 | 5.5180 | 960.00 |
The minimum wage entitlement is proportionally increased for work weeks, as defined under §85 (5) of the Labour Code, that are less than 40 hours as follows:
| Level of intensity | Minimum salary coefficient | Minimum wage | ||
| 38.75-hour work week | 37.50-hour work week | monthly | ||
| 1 | 1.0 | 2.8480 | 2.9429 | 480.00 |
| 2 | 1.2 | 3.4176 | 3.5315 | 576.00 |
| 3 | 1.4 | 3.9872 | 4.1201 | 672.00 |
| 4 | 1.6 | 4.5568 | 4.7087 | 768.00 |
| 5 | 1.8 | 5.1264 | 5.2973 | 864.00 |
| 6 | 2.0 | 5.6960 | 5.8859 | 960.00 |
Examples of jobs at the individual levels of work intensity:
| Level of work intensity | Type of profession |
| 1 | cleaner, housekeeper, storekeeper |
| 2 | cashier, assistant cook |
| 3 | nurse, head cook, accountant |
| 4 | lead accountant, driving school instructor |
| 5 | physician, production manager |
| 6 | CEO, head physician |
13th and 14th salaries shall be exempt from tax and statutory deductions effective 1 May 2018 under the amended Labour Code
Another change implemented by the amendment to the Labour Code effective 1 May 2018 is the exempt status of the 13th and 14th salary (bonus) payments to employees. Beginning this year, employers may pay their employees summer or Christmas bonuses that will be exempt from tax and statutory deduction obligations. Just as in the case of the salary premiums, these exemptions will be rolled out gradually in several phases.
Employers still have the option of paying employees these 13th and 14th salaries or not. If the employer pays them, they must meet specific conditions to apply the exemptions. The first is that the payments equal the employee’s average monthly earnings at a minimum. Another condition is that the exemption is capped at €500.
An employer may pay a 13th salary exempt from tax and statutory deduction obligations in the calendar month of June to an employee who they have employed continuously for at least two years as of 30 April 2018 based on their income for the last 12 months and the previous 12 months before that. The 13th salary may be paid for the first time in the salary for the month of May 2018. In addition to a 13th salary, an employer may pay a 14th salary in the calendar month of November to those employees they have employed for at least 4 consecutive years. Payment of the 13th salary is the prerequisite for paying the 14th salary.
Therefore, if an employee pays an employee a bonus (14th salary) in the calendar month of November without paying the 13th salary in May, such payment shall be subject to the same tax and statutory deduction obligations as before.
Obligation to disclose salary conditions in job ads effective 1 May 2018
The amended Labour Code also introduces the obligation for employers to disclose salary conditions in job ads. If an employment agreement is consequently concluded, the employer shall provide the employer with the salary identified in the job ad itself at a minimum.
Social insurance – Working pensioners exempt from statutory deduction payments on income up to €200 effective 1 July 2018.
This stipulation is based on an amendment to the Social Insurance Act approved by the National Council of the Slovak Republic and which entered into effect on 1 January 2018; this provision on working pensioners and statutory deduction relief on income up to €200 per month is valid and enters into force on 1 July 2018.
Working pensioners who have work agreements and similar work arrangements will no longer have to pay statutory deductions on income up to €200 beginning on 1 July 2018. Pensioners will only be allowed to apply this waiver to one agreement if they work under multiple such arrangements.
Working pensioners who were granted early pensions may also work under work agreements effective 1 July 2018. These pensioners will also have health insurance.
Amendment of the Employment Services Act effective 1 May 2018
The National Council of the Slovak Republic approved a proposal from MPs to issue a new Act to amend Act No. 5/2004 Coll. on Employment Services and on amendment of certain acts, as amended, on 8 February 2018. This act amends various procedures with respect to employing third-country nationals in Slovakia and ways to increase the motivation of job seekers to commute or move for work.
Employment of third-country nationals
– Expansion of the obligations of employers to which third-country nationals are assigned for work to include the provisioning of suitable accommodations and the submission of documentation as proof of their assignment.
– Simplification of the conditions for employing third-country nationals in specific professions in which there is a demonstrable lack of qualified labour in districts where the average level of recorded unemployment in the previous year was below 5%.
– The introduction of additional conditions for issuing confirmation to fill an available position considered highly qualified employment (EU blue card applicants), confirmation to fill an available position, and to award work permits whereby the employer seeking to hire a third-country national may not have violated the prohibition on illegal employment in the two years before filing such application.
Labour mobility
Support is directed on the mobility of job seekers by improving the conditions to establish entitlement to benefits for commuting to work and to support labour mobility:
- increasing the maximum monthly amount of such benefits,
- the ability to provide the benefit for commuting to work regardless of the specific form of transport to work,
- extending the award period for disadvantaged job seekers,
- cancellation of the restrictions for award in a single municipality,
- permitting the combination of both benefits so that mobility support benefits may be provided to employees who move to their place of employment while receiving commuting benefits or immediately after the term during which they are drawn.
A benefit is being introduced to encourage people to move for work and shall be intended to pay costs associated with an individual moving to a new place of permanent residence.
