Capital
Ljubljana
Population
2.1 million
Languages
Slovene
Timezone
UTC +1
Work week
40 hours
Employer taxes
16.1%
Currency
Euro (EUR)
Payroll cycle
monthly
This country guide is for informational purposes only and should not be construed as legal advice. The content of this guide contains general information, and although we update this guide regularly, it may not reflect current legal developments. Lano Software GmbH disclaims any liability for any actions you take or refrain from taking based on the content contained in this country guide.
Modern infrastructure, a strategic position in the center of Europe and the access to the EU market make Slovenia a popular destination for international business expansion, especially for overseas companies that want to do business in Europe.
The local workforce is highly educated and presents a vast variety of professional skills. Innovation and flexibility are common attributes found in Slovene employees, and language skills are widely spread.
Unless stated otherwise in the individual contract, employment relationships are considered open-ended. Fixed-term contracts are only possible in certain circumstances determined by law, such as the temporary replacement of a worker or seasonal work. Contract renewal is strictly regulated and the maximum contract duration for fixed-term contracts is 2 years.
All employment contracts must be concluded in writing and a copy must be provided to the employee before their first day of work. The contract language is Slovene - bilingual contracts are required if either of the employment parties is unable to understand Slovene.
Employment contracts should include the following information:
Identification of both parties
Date of commencement (and employment duration for temporary contracts)
Workplace
Job description, duties and responsibilities
Basic salary as well as other compensation or benefits
Working hours
Total number of holidays
Notice period
Probation period
It is possible for employees and employers to agree on a probationary period. Trial periods must be included in the individual employment contract and cannot be longer than 6 months. During the probation period, the notice period is shortened to 7 days. Pay in lieu of notice is possible if both parties agree on it in writing.
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A standard workweek in Slovenia is 40 hours - must be at least 36 hours for full-time employment. An employee’s weekly working time must be spread over at least 4 days, with a 5-day workweek being most common.
Full-time workers must have a 30-minute lunch break and the daily rest period cannot be shorter than 12 hours - 11 hours for employees with irregular working hours. The weekly rest period must be at least 24 hours.
Work performed in excess of the statutory weekly working time of 40 hours is considered overtime. Overtime can only be requested under exceptional circumstances (written form required) and is limited to 8 hours per week, 20 hours per month and 170 hours per year.
Employees are not allowed to work more than 10 hours in a single day - 13 hours for employees with an irregular work schedule. Pay rates for hours worked overtime are higher and are stipulated by collective agreements. Night and shift work as well as work on Sundays and public holidays must also be paid at higher rates.
Employees in Slovenia must be paid at least once per month. Payments must be issued within 18 days after the end of the respective pay period.
Slovenia’s national minimum wage currently (February 2023) stands at EUR 1,203.36 per month.
If an employee is unable to work due to sickness or injury, he or she is entitled to sick pay. Under Slovenian law, employers are obligated to provide sick pay for a duration of 20 days per individual absence and up to 80 days per year - reduced from 30 days and 120 days following legal changes in January 2022. The sick pay rate is 80%. For any additional sick days, the employee receives sickness benefits from the Health Insurance Institute (ZZZS).
Many employers in Slovenia offer their staff annual bonuses in the form of a 13th month salary or a Christmas bonus. Seniority bonuses are also quite common. However, there is no legal obligation to pay employees a bonus.
Employees and employers in Slovenia are subject to the following tax and social security contribution rates (last review February 2023):
Employers
19%
19% corporate tax rate
22% VAT (standard rate)
Employees
up to 50% *
Employment income is taxed at progressive rates ranging from 16% to 50%.
Employers
16.1%
8.85% Pension and Disability Insurance
6.56% Health Insurance
0.06% Unemployment Insurance
0.1% Fund for Parental Care
0.53% Occupational Accident Insurance
Employees
22.1%
15.5% Pension and Disability Insurance
6.36% Health Insurance
0.14% Unemployment Insurance
0.1% Fund for Parental Care
* Read more
Individual income is taxed progressively based on the following tax brackets:
Up to EUR 8,755: 16%
EUR 8,555 - EUR 25,750: 26%
EUR 25,750 - EUR 51,500: 33%
EUR 51,500 - EUR 74,160: 39%
Over EUR 74,160: 50%
Please note that the social security contributions indicated above do not necessarily reflect the actual employment costs. These may differ depending on the employment contract and due to other factors (e.g. 13th and 14th salary, health insurance allowances, accrual for severance pay, etc.).
Every employee must receive at least 4 weeks of paid annual leave. Leave entitlement increases for senior and disabled employees as well as for workers who have a disabled child to look after.
Under Slovenian labor law, employers are obligated to pay their employees a holiday allowance equal to the national minimum wage or higher. The allowance must be paid out no later than by 1 July of the respective year. Slovenia further observes 11 public holidays.
Maternity leave in Slovenia lasts for 105 days and is fully paid. The leave can start up to 28 days before the expected date of birth.
Fathers have the right to take 30 days of fully-paid paternity leave which is also paid by Social Security. However, payments are capped at 2.5 times the national average monthly wage.
Mother and father are entitled to 130 days of parental leave each - leave can be extended in case of multiple births. Parental leave is covered by statutory payments amounting to the employee’s base salary - the same cap applies as for the paternity benefits.
Collective agreements may provide for additional leave under certain circumstances such as wedding or death of a close relative.
Slovenia’s labor law distinguishes between two different kinds of dismissal, which are regular dismissal and dismissal for serious cause. Reasons for regular dismissal include:
Business reasons such as restructuring or economic circumstances
Non-fulfillment of employment-related responsibilities
Inability to perform work due to medical reasons
Circumstances which validate a dismissal for serious cause include:
Severe breach of contract
Criminal offense
Unexcused absence from work during at least 5 consecutive days
Gross negligence
In case of a dismissal for serious cause, the termination enters into effect immediately. For regular dismissal, the length of the notice period depends on the employee’s length of service. In any case, the employee must be notified in writing.
Length of service
Notice period
If the employee is terminated due to his or her own fault, the notice period is reduced to 15 days, regardless of the length of service. The notice period can further be shortened if the employer offers pay in lieu of notice.
Employees wishing to resign must give 15 days’ notice (if their length of service is less than 1 year) or 30 days’ notice (if their length of service is more than 1 year). Notice periods for employees can be extended to 60 days in the individual employment contract.
Workers who are terminated because of business reasons or due to incapacity to perform work are entitled to severance pay. The amount of severance pay is calculated based on the employee’s length of service.
Length of service
severance pay
Workers whose length of service exceeds 5 years and who are close to retirement upon termination of their employment must receive additional severance pay equal to two monthly salaries. Different regulations apply to employees under a fixed-term contract.
Pregnant employees, mothers with children under 1 year of age and employees on parental leave are protected from dismissal, among other groups.
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