How to Run Payroll in Slovenia: Employment Taxes & Setup

Milani Notshe

Research Specialist

Last Updated

February 13, 2026

In This Guide

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Running payroll in Slovenia involves many moving parts before your team sees money land in their accounts. Each month you need to calculate gross-to-net correctly, apply statutory withholdings and employer contributions, issue compliant payslips, plus file and remit on schedule. If anything slips through the cracks, you could face penalties, back-pay exposure, and unnecessary friction with your people.

If you’re hiring in Slovenia, whether you’re building a local presence or expanding your global footprint, this guide is for you. We’ll walk through the choices and compliance requirements that have the biggest impact on your speed and risk, from entity vs. no-entity hiring to worker classification and the statutory bodies you’ll interact with along the way. By the end, you’ll know exactly what to expect and how to keep payroll running smoothly, wherever you’re hiring.

Key Takeaways

Payroll cycle: Employers in Slovenia generally process payroll on a monthly basis.

Tax filing: Income tax and social security contributions are typically reported and remitted monthly through electronic filings.

Employer taxes: Employer obligations include pension, health, unemployment, and other social insurance contributions calculated as percentages of employee earnings.

Tax year: Slovenia’s tax year follows the calendar year, from January 1 to December 31.

Payroll processing methods: Payroll is commonly handled in-house or outsourced to providers familiar with Slovenian tax and social security requirements.

How to Choose Your Payroll Structure in Slovenia

Expanding into Slovenia? Building a compliant payroll setup involves much more than simply paying salaries. You’ll be responsible for employment compliance, monthly tax and social declarations, and mandatory benefits. Even small delays in filings or payments can lead to real penalties.

You have several operating models to choose from to make this easier. The right one depends on your legal footprint, your appetite for risk, and how quickly you need to start hiring. Let’s break down the main options and when to use each.

1. No Local Entity in Slovenia: Use an Employer of Record (EOR)

If you don’t yet have a legal entity in Slovenia, an Employer of Record is usually the fastest and lowest-risk way to hire. An EOR becomes the legal employer on paper, provides locally compliant employment contracts, and manages payroll under local regulations, while you continue to direct the work and manage performance.

This model is ideal for:

Testing a new market
Hiring your first team members
Scaling a distributed workforce without building local infrastructure,

Why it’s the fastest and least risky option:

You skip the lengthy process (and cost) of setting up an entity.
All local registrations, monthly declarations, and statutory payments are handled by a provider already set up in-country, dramatically reducing your compliance risk.

2. You Have a Slovenia Entity: Run In-Country Payroll

If you already operate a local entity, or you’re planning to establish one, running payroll directly gives you maximum flexibility and control. You can set your own policies, design benefits, and align payroll closely with your finance and internal approval processes. But this also comes with greater operational responsibility.

What you’re responsible for:

Registering with relevant authorities and maintaining compliance with statutory bodies (often involving CSS/IPRES or similar local institutions).
Accurately calculating and remitting payroll taxes and contributions every month – plus handling year-end requirements.
Issuing compliant payslips and maintaining audit-ready payroll documentation.

When this option makes sense:

You’re hiring at scale and want payroll fully “in-house,” even if you partner with a local provider for execution.
You need deeper integration with finance systems or custom benefit structures.

If you want to keep the entity but offload the admin, many employers choose global payroll services to handle calculations, filings, and payments while they remain the legal employer.

3. Contractors Only: Use Contractor Management

Paying independent contractors is often simpler than setting up full payroll, especially for short-term or highly specialized work.

However, you need to watch out for misclassification risk. In Slovenia, as in many jurisdictions, someone may legally qualify as an employee based on how they work – not what their contract says. If they’re under your direction, working like an employee, you may be responsible for full employer obligations.

When contractor payments work well:

You need specialised expertise for a defined scope or timeframe
The contractor operates independently, not under your control or supervision

You can also use contractor management services to streamline compliant contracts, invoicing, and payments.

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What To Know About Payroll Processing In Slovenia

Payroll in Slovenia centers on four core obligations: personal income tax withholding, mandatory social security contributions, any applicable local levies, and periodic payroll reporting to the Financial Administration of the Republic of Slovenia (Finančna uprava Republike Slovenije – FURS). You must calculate and withhold these amounts from each payroll run, pay them to the authorities on time, and keep detailed records that align with Slovenian labour and tax laws.

Non-compliance can trigger financial penalties, late-payment interest, audits by FURS or the Health Insurance Institute of Slovenia, and serious employee relations issues if net pay is wrong or delayed. This guide helps you and your team navigate calculations, deadlines, filing procedures, and setup options so you can run payroll confidently in 2026, including where rules differ by income thresholds, contract type, or company size.

Types Of Payroll Taxes In Slovenia

In Slovenia, payroll taxes are mainly made up of personal income tax withholding, employer and employee social security contributions, and mandatory health and pension insurance charges, all administered primarily by FURS and the Pension and Disability Insurance Institute of Slovenia (ZPIZ). Each component has its own rate structure, base, and payment schedule, and authorities actively enforce timely and accurate reporting.

Personal Income Tax (PIT) Withholding

Personal income tax is withheld by the employer from the employee’s gross salary based on progressive tax brackets, with rates typically ranging from about 16% to 50% depending on annual income. You remit the withheld PIT to FURS on a monthly basis, and incorrect withholding can result in back taxes, interest, and fines, as well as year-end reconciliation issues for employees.

The tax base is the employee’s gross employment income minus mandatory social security contributions and applicable allowances, and you must apply the correct bracket and reliefs for each worker. FURS cross-checks your monthly REK/OFD payroll reports against payments, so persistent discrepancies can trigger audits and potential assessments.

Social Security Contributions

Social security in Slovenia covers pension and disability, health insurance, unemployment insurance, and parental protection, with combined contributions typically around 16.1% for employers and 22.1% for employees on gross salary. Both employer and employee contributions are calculated on the same gross base, subject to statutory minimum and maximum bases set annually.

Employers must calculate, withhold the employee share, add the employer share, and pay the total to the state budget and relevant institutions monthly, usually together with PIT. Late or underpaid contributions can lead to surcharges, enforced collection, and issues with employees’ benefit entitlements, so accurate and timely processing is critical.

Health Insurance And Pension Insurance

Within the social security system, compulsory health insurance and pension and disability insurance are the largest components, with employer pension contributions around 8.85% and health contributions around 6.56%, and employee pension contributions around 15.5% and health contributions around 6.36%. These percentages are applied to the gross salary base and are due every month alongside other social charges.

The Health Insurance Institute of Slovenia (ZZZS) and ZPIZ rely on these contributions to fund benefits, and authorities closely monitor compliance through electronic payroll filings. Misclassification of workers or failure to contribute correctly can result in retroactive assessments, penalties, and liability for unpaid benefits, so you should regularly review rates and bases as they are updated for each calendar year.

How To Pay Employees In Slovenia

Employees in Slovenia are typically paid by bank transfer in euros (EUR) into a local or SEPA-compliant account, and cash payments are rare and administratively burdensome. Salaries are usually paid monthly, with most employers paying by the last working day of the month or by a contractually agreed date that complies with Slovenian labour law.

If you do not have a Slovenian entity, you can use an Employer of Record to hire and pay staff compliantly, or set up a local entity and register for taxes to run your own payroll or work with a local payroll provider. Payslips must clearly show gross salary, all statutory and voluntary deductions, employer contributions, net pay, pay period, and identifiers such as the employee’s tax number and employer details.

Payment Method: Use bank transfers in EUR to employees’ local or SEPA bank accounts for standard salary payments.
Pay Frequency: Set a monthly pay cycle and ensure payment occurs on or before the agreed contractual payday.
Payslip Content: Include gross pay, itemised deductions, employer contributions, net pay, pay period, and identification details.
No-Entity Hiring: Engage an Employer of Record if you need to hire in Slovenia without creating a local company.
Local Entity Route: If you have an entity, register with FURS and social security institutions before running payroll.
Overtime And Bonuses: Reflect overtime, bonuses, and allowances separately on the payslip and apply correct tax and contribution rules.
Record Keeping: Store payroll records and payslips securely for the statutory retention period to support audits and employee queries.

Payroll Set Up Checklist (Entity Vs No-Entity)

Getting payroll set up correctly in Slovenia ensures you withhold the right taxes, pay social contributions on time, and avoid penalties from FURS and social security institutions. Your approach will differ depending on whether you operate through your own Slovenian entity or hire via an Employer of Record without establishing a company.

With an entity, you are responsible for registrations, calculations, filings, and payments, often supported by a local payroll provider or in-house team. Without an entity, an Employer of Record becomes the legal employer in Slovenia and handles payroll compliance while you manage day-to-day work and costs.

Obtain Tax Identification: Register your Slovenian entity with FURS to obtain a tax number for payroll and corporate obligations.
Register For Social Security: Enrol with ZPIZ and ZZZS so you can report and pay mandatory social contributions for employees.
Set Up Payroll Software: Implement payroll software or a local provider that supports Slovenian tax tables, REK/OFD reporting, and e-filing.
Collect Employee Data: Gather employees’ tax numbers, bank details, employment contracts, and information on dependants or allowances.
Define Pay Policies: Establish clear rules for salary structure, bonuses, overtime, benefits, and reimbursement handling.
Configure Contribution Rates: Input current employer and employee social security rates and income tax brackets for the relevant year.
Establish Payment Workflows: Set internal cut-off dates for timesheets, approvals, and bank payment submissions.
Choose No-Entity Option: If you lack a Slovenian entity, contract with an Employer of Record to handle hiring, payroll, and statutory filings.
Internal Controls: Implement review and approval steps for payroll runs, filings, and payments to reduce errors.

Example Of Salary Tax Calculation

Assume a full-time employee in Slovenia earns a monthly gross salary of EUR 2,500 in 2026. You first calculate employee social security contributions (around 22.1%), subtract them from gross to get the taxable base, apply the appropriate progressive income tax rate, and then arrive at net pay.

In parallel, you calculate employer social security contributions (around 16.1%) on the same gross salary to determine your total employment cost. The process is the same each month, but you must update brackets and rates annually and adjust for bonuses, overtime, or benefits in kind.

Step 1 – Employee Contributions: Apply employee social security rates to EUR 2,500 to calculate total employee contributions and subtract from gross.
Step 2 – Taxable Base: Determine the taxable base after social contributions and any applicable allowances.
Step 3 – Income Tax: Apply the correct progressive PIT rate to the taxable base to calculate income tax withholding.
Step 4 – Net Pay: Subtract employee contributions and PIT from gross salary to obtain net salary for payment.
Step 5 – Employer Cost: Apply employer social security rates to EUR 2,500 and add to gross salary to find the total employer cost.

Submitting Employee Tax In Slovenia

In Slovenia, you submit payroll taxes and social contributions electronically via FURS’s eDavki portal, usually supported by your payroll software or provider. You need your company tax ID, employee tax numbers, payroll period details, and the correct REK/OFD forms to file and then pay via bank transfer using the prescribed reference numbers.

eDavki Portal Filing: Upload or generate monthly REK/OFD payroll reports through the eDavki online system.
Bank Transfer Payments: Pay PIT and social contributions via bank transfer using the correct payment reference and purpose codes.
Integrated Payroll Software: Use payroll software that can create compliant XML files and submit them directly to eDavki.
Third-Party Provider: Engage a local payroll bureau or Employer of Record to manage filings and payments on your behalf.
Reconciliation: Regularly reconcile filed amounts with bank payments and FURS confirmations to catch discrepancies early.

Payroll Tax Due Dates In Slovenia

Tax Type	Due Dates
Monthly Personal Income Tax Withholding	By the 18th day of the month following the month in which wages are paid.
Monthly Social Security Contributions	By the 18th day of the month following the month in which wages are paid.
REK/OFD Payroll Reporting To FURS	On or before the day wages are paid, and no later than the 18th of the following month.
Annual Personal Income Tax Reconciliation (Employee Level)	By 31 July of the year following the tax year, based on FURS assessments and employee responses.
Annual Employer Reporting Of Income (If Required)	Typically by the end of January of the year following the tax year, according to FURS instructions.
Correction Filings For Payroll Declarations	As soon as an error is identified, generally within 30 days of discovery or as directed by FURS.

Running Payroll Processing in Slovenia

So, what does it actually take to run payroll in Slovenia? It involves calculating monthly salaries, applying the right statutory deductions, and making sure your team gets paid accurately and on time, while staying fully compliant with local tax and labour laws.

Let’s walk through what that looks like in practice:

Monthly Payroll Workflow

Gather all the essentials: hours worked, leave taken, new joiners, leavers, and any salary or benefit changes.
Double-check timesheets, leave balances, overtime, and any variable pay to make sure everything is accurate.
Work out gross earnings, including base salary, bonuses, commissions, and allowances.
Apply mandatory and voluntary deductions, like income tax, pension contributions, benefits, and any company-specific deductions. Then, calculate net pay after all deductions.
Run internal reviews, compare with previous payroll cycles, and get the necessary approvals.
Pay employees via bank transfer and share payslips through email or your payroll system.
Send statutory payments and required reports to tax authorities.
Update your records and ensure payroll entries flow correctly into your accounting system.
Share payroll summaries with finance and address any open questions or discrepancies.

How Playroll Streamlines Processing

Keeping track of all these steps, especially in a new market, is no easy task. Regulations change, requirements shift, and it’s easy for things to fall through the cracks. Playroll makes this effortless by managing the entire payroll process for you: onboarding employees, handling calculations and deductions, issuing payslips, transferring funds in Euro, and taking care of statutory filings and compliance.

Income Tax And Social Security In Slovenia

Understanding the tax obligations for both employers and employees is crucial when operating in Slovenia's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Slovenia.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 16% – 18% on top of the employee salary in Slovenia. These contributions mainly cover pension and disability insurance, health insurance, unemployment insurance, and parental protection, and are calculated on the employee’s gross salary within statutory minimum and maximum bases.

Tax Type	Tax Rate
Pension And Disability Insurance (Employer)	8.85%
Health Insurance (Employer)	6.56%
Unemployment Insurance (Employer)	0.06%
Parental Protection Insurance (Employer)	0.10%
Injury At Work And Occupational Disease (Employer)	0.53%
Total Typical Employer Social Contributions	Approximately 16.1%

Employee Payroll Tax Contributions

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

Tax Type	Tax Rate
Pension And Disability Insurance (Employee)	15.50%
Health Insurance (Employee)	6.36%
Unemployment Insurance (Employee)	0.14%
Parental Protection Insurance (Employee)	0.10%
Total Typical Employee Social Contributions	Approximately 22.1%
Supplementary Pension (Voluntary, If Any)	Rate per employer scheme, often 2% – 5%

Individual Income Tax Contributions

Individual income tax in Slovenia is progressive, with several brackets that apply to annual taxable income after social contributions and allowances. Employers withhold PIT through payroll, and FURS performs an annual assessment based on total income for the year.

Income Bracket	Tax Rate
Up to EUR 8,755	16%
EUR 8,756 – EUR 25,750	26%
EUR 25,751 – EUR 51,500	33%
EUR 51,501 – EUR 74,160	39%
Above EUR 74,160	50%

Pension in Slovenia

Pension contributions in Slovenia are mandatory for both employers and employees and finance the public pay-as-you-go pension and disability system managed by ZPIZ. Contributions are calculated as a percentage of gross salary, and years of contributions and earnings history determine future pension entitlements for employees.

Managing Common Payroll Challenges in Slovenia

Global employers operating in Slovenia often encounter unique payroll challenges that can affect compliance and efficiency, like navigating evolving tax laws and managing employee data. With a need for real-time accuracy, modern organizations must develop strategies to overcome these challenges effectively. Below, we explore some of the most common payroll hurdles and provide actionable solutions to streamline payroll processes in Slovenia.

Maintaining Accurate And Detailed Payroll Reports

Maintaining accurate global payroll reports is often challenging due to currency exchange complexities, data integration issues, and the need to keep employee information up-to-date –including tax information, hours worked, leave balances, and any changes in salary or job status. Generating accurate reports is easy with a comprehensive payroll automation tool that consolidates fragmented data sources, and can keep track of employee payments and deductions.

Keeping up with ever-changing tax laws & Compliance Laws

In Slovenia, tax laws and compliance regulations can change frequently, presenting a significant challenge for global employers. Monitoring updates to federal, state, and local tax codes is crucial to avoid non-compliance and costly penalties, but requires significant time and resources. Partnering with local experts or a reputable global HR platform is an effective way to maintain compliance. These services can help employers stay compliant with evolving regulations while freeing up time for more strategic work.

Consolidating Multi-Vendor Payroll Analytics

Managing payroll across multiple vendors often leads to fragmented data and inefficiencies, making it difficult to consolidate analytics. These challenges can hinder decision-making, especially when trying to gain a clear view of workforce costs and trends. To address this, organizations can invest in a centralized payroll management system that unifies data from multiple vendors. A consolidated platform simplifies payroll tracking, ensures data accuracy, and provides actionable insights into payroll expenditures.

Integrating Multiple HR & Payroll Systems

Global companies are prone to using multiple HR or payroll systems across regions, which can easily lead to fragmented payroll data, increasing the risk of delays and errors in employee compensation. To combat this, seamless integration between payroll and other systems is critical.

Payroll management systems that connect with existing HR and financial platforms can help streamline workflows by reducing manual inputs and ensuring that all departments operate with up-to-date, accurate information. In turn, this helps guarantee on-time, accurate payroll, boosting employee satisfaction.

How Playroll Can Streamline Payroll & Taxes In Slovenia

Expanding globally is an exciting milestone for any company, but it comes coupled with complex payroll challenges. It doesn’t have to be complicated. At Playroll, our easy-to-implement global payroll management software combines automation with hands-on support to make global payroll truly simple. Here's how Playroll helps:

Multi-Vendor Integration: Our platform syncs seamlessly with your providers and in-house systems to unify global payroll services in one platform.
Standardize Payroll Processes: Unify your operations in one dashboard to ensure payroll is running smoothly globally, with advanced approval flows and reports.
Improve Governance & Compliance: Improve compliance by centralizing all your compliance tasks and processes. Easily track your payment obligations, with digitized audit trails.
Advanced Reporting: Access and configure your data, your way, with a comprehensive suite of payroll analytics and reporting tools.

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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