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.
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 Hours: 8:00 am to 3:00 - 5:00 pm from Monday to Friday.
The standard working week is from Monday to Friday from 8:00 am - 4:00 pm.
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.
Automobiles; metal and metal products; electricity, gas, coke, oil, nuclear fuel
Dates & Numbers
Official State Name
International Dialing Code
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
Payroll reports must be kept for 10 years
Employees receive paid annual leave of 4 weeks after completing 60 days of service
Employees receive paid sick leave of 10 days
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
There are no provisions mandated by law regarding the 13th month salary
13th month salary
3.71 EUR per hour
Overtime payment is calculated at 125% of the employee's ordinary rate of pay
An employee’s severance pay is calculated at one-to-four times the employee’s average monthly wage.
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.
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
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
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.
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.
Probationary periods may be agreed between employer and employee but it cannot exceed three months and must be prepared in writing.
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.
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.
Minimum notice period for terminating an employee
Total number of public holidays
Working hours per week
Total number of days for Compassionate & Bereavement Leave
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.
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
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.
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