The National Council of the Slovak Republic has passed a law amending and supplementing Act No 461/2003 Coll., on Social Security.
In practice, many companies are already applying tax and levy benefits on wages paid during summer holidays (13th wage) and the Christmas holidays (14th wage). These were approved in 2018. Before the introduction of an annual settlement of social insurance, i.e. before 1 January 2022, this new law will regulate the assessment basis for the payment of social security contributions to employees and employers from the 13th wage provided to employees in 2021 and the 14th wage provided to employees between 2019 and 2021.
In 2021, neither employees nor employers will pay social insurance contributions from the 13th wage provided by every employer from a sum of up to €500, provided that the following conditions are met at the same time:
- the 13th wage is provided in June 2021;
- the 13th wage is a minimum amount of €500;
- as of 30 April 2021, the employee has worked for the employer for an uninterrupted period of at least 24 months.
Similarly, neither employees nor employers will pay social insurance contributions from the 14th wage provided by every employer from a sum of up to €500 from 2019 to 2021, provided that the following conditions are met at the same time:
- the 14th wage is provided in December of the relevant calendar year;
- the 14th wage is equal to the employee’s average monthly earnings;
- as of 31 October of the relevant calendar year, the employee has worked for the employer for an uninterrupted period of at least 48 months;
- the employer has also paid the employee a 13th wage.
The National Council of the Slovak Republic has approved this legislation, which will go into effect 1 September 2019.
