Employer of Record and Payroll Services in Slovakia 
Mercans-owned legal entity 
We have our own legal entity to protect your business from risk and provide you and your employees with a distinctive experience.
We have our own legal entity to protect your business from risk and provide you and your employees with a distinctive experience.
Services available
- Employer of record
- Contractor management
- Global payroll
- In-country payroll
Mercans offers complete payroll, PEO and HR services in Slovakia
An export-oriented country, Slovakia presents an attractive option for foreign direct investment. A number of industry sectors remain attractive including automotive, machinery, metallurgy, chemicals and pharmaceuticals. Investments are supported in a few ways, namely, the country’s membership in the EU, a range of investment incentives and a sound financial sector. This needs to be set against weak public administration, low R&D investment and a transport network that requires more attention.
Doing Business in Slovakia
Slovakia ranks 118 out of 190 countries in terms of ease in starting a business, according to the World Bank’s Doing Business 2020 report and the business environment is continually improving. Strategically located at the center of Europe, Slovakia is also one of the safest, most stable countries in Europe.
Entity Registration and Incorporation Requirements
Setting up a new business or expanding an existing one in Slovakia is straightforward. Choose how your company operates from a range of entity types that suit your individual circumstance.
Banking
Banking Hours: 8:00 am to 3:00 - 5:00 pm from Monday to Friday.
Working Week
The standard working week is from Monday to Friday from 8:00 am - 4:00 pm.
Labor Law
Under Slovak law, there is more than one type of employment contract recognised. However, fixed-term employment contracts may only be entered into for a maximum of two years.
Main Industries
Automobiles; metal and metal products; electricity, gas, coke, oil, nuclear fuel
GDP Growth
0.40%
Dates & Numbers
dd/mm/yyyy
Official State Name
Slovak Republic
Population
5.46 million
Capital
Bratislava
Major Languages
Slovak
Currency
Euro (EUR)
Internet Domain
.sk
International Dialing Code
+421
15°C
Payroll
Wages are a basic requirement of the employment contract and may only be amended through mutual agreement of both the employer and employee.
It is acceptable to provide employees with online payslips
Payslip
Payroll reports must be kept for 10 years
Reports
Employees receive paid annual leave of 4 weeks after completing 60 days of service
Annual Leave
Employees receive paid sick leave of 10 days
Sick Leave
Employees receive 34 weeks of paid maternity leave and 31 weeks of paid paternity leave
Maternity & Paternity Leave
Three months notice is required for termination
Employee Termination
There are no provisions mandated by law regarding the 13th month salary
13th month salary
3.71 EUR per hour
Minimum Wage
Overtime payment is calculated at 125% of the employee's ordinary rate of pay
Overtime
An employee’s severance pay is calculated at one-to-four times the employee’s average monthly wage.
Severance Pay
Tax and Social Security
Tax residents in Slovakia are subject to tax on worldwide income, wherever the income may be remitted. Social security contributions are mandatory except in cases where exemptions may apply.
Tax
There are no local taxes on personal income. There may, however, be foreign tax relief for foreign-source income, in certain circumstances.
Corporate Income Tax
Personal Income Tax
Sales Tax
VAT
Social Security
Contributions must be made to the statutory social security as well as health insurance schemes
Social Security Rate
Social Security Rate for Employers
Social Security Rate for Employees
Employment Law
There are two types of employment agreements in Slovakia, namely, agreements for a defined period of time and agreements for an indefinite period. The relevant law applicable is the Slovak Labor Code. The employment contract may specify the choice of law and jurisdiction. Where this is not outlined, the contract will be governed by the law of the country in which the employee carries out their work.
Employment Agreement
Other than the two types of employment agreements, employees may also perform work under other agreements such as agreements for on-call work or student part-time work.
Working condition
Probationary periods may be agreed between employer and employee but it cannot exceed three months and must be prepared in writing.
Leaves
The basic allowance for leave of absence is at least four weeks. Generally, an employer may ask its employees to work during non-working days but only in special circumstances.
Employment termination
Slovak law recognises five ways in which employment may be terminated, that is, by mutual agreement, by notice, by instant termination defined by law,, termination within a probationary period without providing a reason and expiry of the period of employment. Instant termination may be allowed in the case of an employee’s gross misconduct.
2 months
Minimum notice period for terminating an employee
15 days
Total number of public holidays
40 hours
Working hours per week
2 days
Total number of days for Compassionate & Bereavement Leave
Immigration
Citizens of the EU do not require a work permit in most instances. An employer is generally allowed to employ an individual who is not a citizen from the EU on a number of limited grounds which include that the individual holds the EU blue card, has been granted a permit for temporary stay for employment, has been granted a work permit for employment or for the purpose of reuniting the family.
Residency permits
Work permits are issued by the Office of Labor, Social Affairs and Family while permits for temporary stay are issued by the Slovak Immigration Authority.
Work Permit Validity
Type A permits are of unlimited duration
Type B permits are for four years
Type C permits are for one year
Required Documents
A valid passport
A signed application form completed in the Slovak language
An employment contract or official job offer from an employer based in Slovakia
Officially translated documents that support the applicant’s professional and educational qualifications for the position.
Build the best team and hire top talent compliantly in Slovakia. Get in touch with Slovakia payroll outsourcing & PEO specialists for a free consultation!