Payroll & Employment Guide Slovenia

In Slovenia, employment contracts must be concluded in written form and adhere to the country’s Employment Relationship Act. Contracts can be for a fixed or indefinite term and must clearly define the terms of employment, including job duties, salary, working hours, and the rights and obligations of both parties.

Notice periods: Ranging from 15 to 60 days

Termination of employment: Upon termination, employers must pay all outstanding wages - including compensation for unused paid time off (PTO) - by the employee’s final working day or no later than the regular payday for the final pay period. Notice indemnity applies if an employee is dismissed without notice or if they resign with the employer’s agreement.

Severance pay is owed when termination occurs due to redundancy or other valid business-related reasons. The amount depends on the length of service:

• 1–10 years: one-fifth of the average monthly salary per year of service
• 10–20 years: one-quarter per year of service
• 20+ years: one-third per year of service

Employers in Slovenia must provide statutory employee benefits in line with national labour laws. Many companies also offer additional perks to stay competitive and support employee well-being.

Mandatory benefits:

• Social security contributions covering pension, health, unemployment, and parental protection
• Paid annual leave (minimum 20 working days per year; additional days may apply based on age, seniority, disability, or collective agreements; unused leave must generally be taken by 30 June of the following year)
• Paid public holidays (holidays falling on weekends are not replaced)
• Sick leave with a valid doctor’s note (generally 80% pay for non-work-related cases, 100% for work-related cases; other cases range from 60%–100%)
• Maternity, paternity, and parental leave
• Overtime pay or compensatory time off
• Notice periods, severance protections, and seniority-related benefits where applicable

Social security & insurance:

• Total employee contributions: approx. 22.1% of gross salary
• Total employer contributions: approx. 16.1%
• Health insurance is mandatory and provided via ZZZS
• Unemployment, workers’ compensation, and disability insurance are included in statutory contributions

Additional and common benefits:

• Voluntary pension schemes (second and third pillars)
• Meal vouchers, transportation allowances, training and development programmes
• Flexible or remote working arrangements

Reimbursements and allowances:

• Work-related expenses must be reimbursed with proper documentation
• Business travel requires a travel order; expenses and daily allowances are reimbursed and reported via the REK form
• Employers may reimburse home-office costs up to €4.79 per day, which is tax-exempt within the legal limit

Slovenia has a well-defined tax system that applies to individuals and employers, with progressive personal income tax, mandatory social contributions, and separate taxation for certain capital income. Employers are responsible for withholding income tax and social security contributions, while individuals may also benefit from allowances and reliefs depending on their status.

Individuals, regardless of nationality, are considered residents of Slovenia if they have either a formal or actual residence connection to the country.

A formal residence connection includes having a registered permanent home in Slovenia, being a Slovenian public employee working abroad, or being employed by an EU institution while previously residing in Slovenia.

An actual residence connection exists if the individual has their habitual abode or the centre of their personal and economic interests in Slovenia, or if they are physically present in Slovenia for more than 183 days during the tax year.

Personal income tax: Slovenia applies progressive personal income tax rates, as follows:

• Income up to €9,210.26 - 16%
• Income from €9,210.26 to €27,089.00 - 26%
• Income from €27,089.00 to €54,178.00 - 33%
• Income from €54,178.00 to €78,016.32 - 39%
• Income over €78,016.32 - 50%

Withholdings and contributions:

• Dividends: Generally taxed at 25% - may be reduced for non-residents under an applicable tax treaty.
• Interest: Generally taxed at 25% - may be reduced for non-residents under an applicable tax treaty, and exemptions for certain types of interest apply.
• Capital gains: Generally taxed at 25% - often reduced up to 15% or fully exempt if certain conditions apply.

Tax allowances and non-taxable benefits: Slovenia does not have a single universal personal allowance. Instead, relief is provided through structured allowances and targeted exemptions:

• General annual allowance of €5,260 (2025) for all resident individuals.
• Additional allowances depending on status:
  -Senior allowance of €1,578 for individuals aged 70+.
  -Allowances for people with disabilities, students, employees under 29, and long-term volunteers in the security and rescue sectors (subject to conditions).

Deductions and tax reliefs: Slovenian tax residents can benefit from several deductions and reliefs defined under statutory conditions:

• Dependent family members: Tax relief available under specific conditions.
• Voluntary pension contributions: Eligible for tax advantages within statutory limits.
• Donations: Certain item-specific tax credits or deductions may apply under defined rules.
• Capital gains tax relief (holding period-based reduction):
  -25% standard rate.
  -20% after 5 years.
  -15% after 10 years.
  -Full exemption after 15 years.

Employers in Slovenia are required to process and pay salaries in accordance with employment contracts and national labour regulations. Salaries must not fall below the statutory minimum wage and must be paid on a monthly basis.

Employers are also responsible for submitting payroll declarations to the Financial Administration of the Republic of Slovenia, which include detailed reports of gross salaries, deductions, and contributions for every employee. This ensures compliance with national labour and tax laws and helps maintain transparency in payroll operations.

Salary payment deadline: By the 10th of the following month.

Taxes and contributions payment deadline: By the 15th of the following month.

Payroll declarations deadline: By the 20th of the following month

Payroll currency: EUR

Slovenia’s labour framework is governed by the Employment Relationship Act, which outlines key aspects of employment such as contract types, minimum wage, working hours, probation periods, and employer obligations. Ensuring compliance with these regulations is essential for businesses hiring locally or managing remote teams.

Employers must provide a mandatory allowance known as the minimum wage, which represents the lowest legal salary payable to employees. While a private pension system exists in Slovenia, participation is voluntary and depends on each employee’s choice.

Total employment cost:

• Employer’s social security contributions: 16.44%
• Employer’s health insurance costs: 7.75%
• Employees’ social security contributions: 22.1%
• Employees’ health insurance costs: 6.36%

Minimum wage: €1,481.88 gross per month

Probation period: Up to six months

Using EOR services in Slovenia allows you to employ individuals legally in the country without establishing a local legal entity. The EOR takes over all the legal responsibilities as an official employer, including:

• Legal employment and contracts
• Payroll processing
• Tax withholding
• Benefits administration
• Onboarding/offboarding employees

Using PEO services in Slovenia offers HR and administrative support, allowing you to remain the legal employer. PEO services are ideal for employers who already have legal entities in Slovenia but need support to manage their workforce operations, including:

• HR support and workforce administration
• Payroll and benefits management
• Compliance and local labour law guidance
• Employment contracts assistance

Native Teams provides a payroll calculator adjusted per Slovenia’s labour laws. Using our calculator, you can easily estimate net and gross salaries, employer/employee contributions, and other mandatory deductions in the country.

Here is a list of public holidays in Slovenia: