Employer of Record in Slovenia

Guide to Hiring Employees in Slovenia

Your guide to hiring employees in Slovenia, covering the employment landscape, employer of record responsibilities, working customs, and local labor laws.

Hiring Employees In Slovenia
Employer Of Record In Slovenia

Capital City

Ljubljana

Currency

Euro

 (

)

Timezone

GMT +1

Payroll Frequency

monthly

Tax Year

1 January - 31 December

Employer Tax

16.64%

Languages

Italian

Hungarian

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How to Hire Employees In Slovenia

Hiring in Slovenia for the first time can be overwhelming, especially when navigating unfamiliar employment laws.  Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success.  Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Slovenia in the following three ways:

  • Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Slovenia.
  • Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Slovenia’s labor laws and tax regulations.
  • Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Good To Know

Slovenia, with over 80% of its population holding tertiary-level degrees, boasts a highly educated and skilled workforce, ensuring a continuous talent supply.

Proficiency in multiple languages, particularly English, facilitates seamless communication with international partners.

Its strategic location in Europe provides easy access to major markets and transportation networks, fostering international business.

Slovenia also nurtures innovation and entrepreneurship, evident in its thriving startup scene and supportive government policies.

Employment and Labor Laws in Slovenia

Businesses can only operate smoothly in Slovenia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Slovenia below, to avoid any compliance issues.

Employment Contract Requirements

Employment contracts in Slovenia must be written in Slovenian, although bilingual contracts are acceptable. These agreements should clearly outline crucial terms such as:

  • Salary
  • Working hours
  • Probation period
  • Termination details
  • Confidentiality obligations
  • Other relevant provisions

Onboarding Process

We can help you get a new employee started in Slovenia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Slovenia

A standard workweek in Slovenia is 40 hours - must be at least 36 hours for full-time employment. An employees weekly working time must be spread over at least 4 days, with a 5-day workweek being most common.

Overtime in Slovenia

Overtime in Slovenia is work exceeding the standard 40-hour weekly limit. It can only be requested under exceptional circumstances, documented in writing. Limits apply: 8 hours per week, 20 hours per month, and 170 hours annually. Overtime is not available to all categories of employees, certain limits apply.

Probation Period in Slovenia

Probation periods in Slovenia are optional, with a minimum duration of 30 days and a maximum of 180 days (6 months).

Employer of Record in Slovenia

An Employer of Record (EOR) acts as the legal employer for workers in Slovenia, taking on key responsibilities to ensure compliance with local labor laws and regulations. The EOR facilitates the hiring process for businesses that want to employ workers without establishing a legal entity in the country.

The employer of record in Slovenia is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Slovenia's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Slovenia's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Slovenia's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Slovenia's labor laws, such as health insurance, pension contributions, and statutory leave.
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Payroll Management in Slovenia

Fiscal Year in Slovenia

1 January - 31 December is the 12-month accounting period that businesses in Slovenia use for financial and tax reporting purposes.

Payroll Cycle in Slovenia

The payroll cycle in Slovenia is usually monthly, with employees being paid on the last working day of each month..

Minimum Wage in Slovenia

The minimum wage for employees in Slovenia is typically 7.84 EUR per hour, amounting to ~1,253.90 EUR per month for a typical 40 hour work week.

Bonus Payments in Slovenia

In Slovenia, 13th-month payments are not mandatory.

Employment Taxes in Slovenia

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 16.64% on top of the employee salary in Slovenia.

Tax TypeTax Rate
Pension and invalidity insurance 8.85%
Health insurance contributions 6.56%
Unemployment insurance contribution0.6%
Occupational injury contribution0.53%
Parental protection contribution0.1%

Employee Payroll Tax Contributions

In Slovenia , the typical estimation for employee payroll contributions cost is around 22.1%.

Tax TypeTax Rate
Pension15.5%
Unemployment0.14%
Health Insurance6.36%
Maternity/Parental Care0.1%

Individual Income Tax Contributions

The individual income tax in Slovenia ranges from 16% to 50%, calculated based on progressive rates. Various factors, including household status and the number of children, can influence the overall tax rates.

Income BracketTax Rate
0 - 8,755 EUR16%
8,756 EUR - 25,750 EUR26%
25,751 EUR - 51,500 EUR33%
50,501 EUR - 74,160 EUR39%
72,161 EUR - And above50%

Pension in Slovenia

In the Republic of Slovenia, the pension system operates on the principle of intergenerational solidarity. Individuals who reach the specified age and meet the requisite number of years in the pension qualifying period are eligible for an old-age pension.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Slovenia tailored to your needs.

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Work Permits & Visas in Slovenia

Annual Leave & Company Policies In Slovenia

Mandatory Leave Entitlement in Slovenia

The annual leave entitlement in Slovenia is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Slovenia

Slovenia has 15 national holidays:

HolidayDate
New Years Day1 January
Day after New Years Day2 January
Prešeren Day, Slovenian Cultural Holiday8 February
Easter Sunday9 April
Easter Monday10 April
Labor Day1 May
May Day Holiday2 May
Whit Sunday28 May
Statehood Holiday25 June
Feast of the Assumption15 August
Reformation Day31 October
Independence and Unity Day26 December

Paid Time Off in Slovenia

Both full-time and part-time employees in Slovenia are entitled to 20 working days of paid time off (PTO) per year, accruing monthly at a rate of 1.66 days.

Maternity Leave In Slovenia

Employees in Slovenia are entitled to 105 days of maternity leave. Maternity leave should commence 28 days before the birth date and 77 days after childbirth. The Health Insurance Institute will cover the base salary during this period subject to the minimum and maximum salary caps.

Paternity Leave In Slovenia

Employees in Slovenia are entitled to 30 days of paternity leave, which should commence after the birth of the child. During this period, the government will pay the salary, calculated based on the average monthly wage of the past 12 months subject to the applicable caps.

Sick Leave In Slovenia

There is no limitation to sick leave in Slovenia as long as the employee presents a medical certificate. If the illness or injury is work-related, the employer covers the first 30 days, after which it is covered by social security. The amount of payment depends on the reason for sick leave.

Parental Leave In Slovenia

Employees in Slovenia are entitled to 130 days of parental leave each (260 days in total). This entitlement may be extended in specific circumstances, such as the birth of twins or more children simultaneously, the premature birth of a child, or if a child requires additional care.

Employment Termination and Severance Policies in Slovenia

Termination Process in Slovenia

According to the Employment Relationships Act , employers are required to provide advance notice before terminating an employee. Dismissal must be objectively justified based on factors related to the business, the employer, or the employee.

Notice Period in Slovenia

In Slovenia, the notice period varies based on the employee's seniority:

  • 7 days' notice for dismissal during probation period
  • 15 days' notice for up to 1 year of service
  • 30 days' notice for 1 to 2 years of service
  • 80 days notice for above 25 years of service.

Severance in Slovenia

If an employee's contract is terminated due to business reasons (such as redundancy, organizational changes, or economic difficulties) or if the employee becomes permanently unable to perform their job due to medical reasons, severance pay is mandatory. The minimum period of continuous employment required for acquiring severance payment is one year.

  • 1/5 of average monthly salary for employment between 1 and 10 years
  • 1/4 of average monthly salary for employment over 10 and less than 20 years
  • 1/3 of average monthly salary for employment over 20 years

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQS

FAQs About Hiring In Slovenia

Questions and Answers

What Is an EOR in Slovenia?

An Employer of Record (EOR) in Slovenia is a third-party organization that legally employs workers on behalf of your company. The EOR handles all local employment tasks, including compliance with labor laws, payroll, taxes, benefits, and employment contracts. This allows businesses to easily hire talent in Slovenia without the need to set up a legal entity there, saving time and ensuring compliance with local regulations.

Can I Hire in Slovenia Without an Employer of Record?

Yes, you can hire in Slovenia without an Employer of Record, but this typically requires setting up a legal entity in the country. Establishing a local entity involves navigating registration processes, tax systems, and employment regulations. This can be costly and time-consuming, often taking between 4-6 months to enter a new market. An EOR provides an alternative by allowing you to hire talent quickly and compliantly without the need to establish a legal presence in Slovenia.

How Much Does It Cost To Employ Someone In Slovenia?

The cost of employing someone in Slovenia includes more than just their salary. You also need to consider mandatory contributions such as taxes, social security, insurance, and benefits. These additional costs can vary based on the role, location, and specific employment laws in Slovenia. When using an Employer of Record, there are additional service fees, usually charged as a percentage of the employee's salary or as a monthly or annual fee. This ensures compliance and covers administrative tasks.

What Is the Minimum Wage In Slovenia?

As of January 1, 2024, Slovenia's minimum wage rates are:

  • 7.84 EUR p/h EUR per month.
  • Applies nationwide across all sectors.
  • Adjustments typically occur annually.

How Does an EOR Help You Run Payroll In Slovenia?

An EOR simplifies payroll management in Slovenia by handling all aspects of salary payments, tax deductions, and compliance with local labor laws for your international employees. The EOR calculates gross pay, deducts necessary taxes and contributions, and ensures employees are paid accurately and on time. They also manage year-end tax reporting and compliance filings, reducing the administrative burden on your team and minimizing the risk of errors or penalties.

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