29.04.2022 Taxes

[Slovakia] Legislative changes in HR and payroll in 2022

The amounts of meals for domestic business trips increase as follows.

  • 6 EUR – time zone 5 to 12 hours,
  • 9 EUR – time zone 12 to 18 hours,
  • 13,70 EUR – over 18 hours.

Since the payout of the meal vouchers/meal provision is linked to the amounts of meals for domestic business trips, the amount of meal voucher/meal provision and the employer contribution has risen as well.

Please note that:

  • The maximum value of meal/meal voucher is 6,00 EUR.
  • The maximum possible employer’s contribution to meal/meal voucher is increased to 3,30 EUR.
  • The minimum value of meal/meal voucher is 4,50 EUR.
  • The minimum possible employer’s contribution to meal/meal voucher is increased to 2,48 EUR.

Please note that those employers who have so far provided less than 2,48 EUR per day must increase the subsidy for meals!

Part of the price of a meal voucher/meal can be paid from the social fund, the rest is paid by the employee.

Financial contribution

This allowance is equal to the amount the employer contributions to the employee´s meal/meal voucher:

  • min. amount of financial contribution = 2,48 EUR
  • max. amount of financial contribution = 3,30 EUR

The employer can also provide a financial contribution from the social fund, without limit.

Meal vouchers and a financial contribution for meals are provided in advance.

Change in compensation per kilometer for business trips form May 1st 2022

  • 0,059 €/km – single-track vehicles, tricycles;
  • 0,213 €/km – passenger road motor vehicles.

Non – monetary income up to 500 EUR yearly is exempt from tax and social/health deductions

If the employer decides to provide the non-monetary benefit to the employee (e.g. voucher to a store/restaurant/wellness, gift, etc.), this benefit – up to 500 EUR yearly from all employers – is not subject to tax and social/health deductions if it is not recognized as a tax expense to achieve, secure and maintain taxable income (i.e. it is not booked as a company tax deductible cost). A value exceeding 500 EUR will be subject to tax and health and social insurance.

Despite the fact that such a non-monetary income has zero effect for payroll, we kindly ask our clients to include it in the payroll inputs as these non-monetary benefits need to be tracked in the payroll.

The employee´s age as a reason for termination has been suspended

In 2021, an amendment to the Labor Code was approved (scheduled to be effective from 1 January 2022) and has introduced a new reason for the termination of the employee. According to this novelization, the employer could terminate the employment of the employee reaching the age of 65 and the age determined for entitlement to a retirement pension. In December 2021, the Constitutional Court decided to suspend its effectiveness, which means that the given reason cannot be stated as a reason for the employee’s dismissal.

“KURZARBEIT” – a permanent job protection system

Kurzarbeit is a new system applicable for companies with employees (it does not apply to self-employed person and also single-person limited liability company).

It introduced a new Social insurance deduction in the amount of 0,5% called financing of support during part-time work (PFP) but at the same time, lower the already applicable deduction of unemployment insurance from 1% to 0,5% which left the final amount that the employer pays untouched (with a few exceptions, e.g. part time retired person).

The system serves to help the employer in difficult times – to maintain jobs by reducing employer’s wage costs. The support is applicable if the employer is unable to temporarily assign the employee to full time due to an unfavorable situation beyond his control, and thus agrees to the employee on part-time.

Its effectiveness begins on March 1, 2022, and the first applications are submitted in April, always for the previous calendar month.

How does it work?

The employee is entitled to compensation of wages in the amount of min. 80%:

  • State aid – 60% of the average earnings of an employee in the calendar month for which the support is provided, but not more than 60% of 1/174  two-times the average wage in the Slovak economy published by the Statistical Office of the Slovak Republic for the calendar year preceding the calendar year in which the support is provided;
  • the rest is financed by the employer.

The subsidy from the state can be provided for a maximum of 6 months in 24 consecutive months.

A practical example

In March 2022, the employee had 110 hours of obstacles at work due to limited employer activities during part-time work. His average hourly earnings for the 4th quarter of 2021 were 5 EUR / hour.

  • State subsidy = 60% x average hourly earnings x number of hours of obstacles
  • State subsidy = 60% x 5 EUR x 110 hours = 330 EUR

Conditions for entitlement to support:

You can find more information on the website: www.skratenapraca.gov.sk

Wage compensation in case of obstacles on the part of the employer

As of March 1, 2022, in the case of an employer’s application for support during part-time work, the employee is entitled to a wage compensation in the amount of min. 80% of his average earnings.

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