Payroll accounting changes in 2016

From January 2016 the minimum assessment base will amount to 50% of the average wage in Slovakia for 2014 (EUR 858), which represents EUR 429.

The maximum assessment base amounts to five times the average monthly wage, i.e. EUR 4,290. For employers and employees, this means that contributions to health and social insurance will be paid from a maximum amount of EUR 4,290 per month. The advance for health insurance for employees will amount to a maximum EUR 171.60 per month, while the contribution to social insurance will amount to a maximum EUR 403.26 per month. For employers, health insurance will amount to a maximum EUR 429 per month and social insurance will amount to roughly EUR 1,046.75 per month, as the accident insurance has an unlimited assessment base.

In connection with the change to the average monthly wage, the daily assessment base for the calculation of sickness leave income reimbursement will also change. The daily assessment base is determined from 1.5-times the general assessment base (EUR 858). The maximum daily assessment base will amount to EUR 42.3124, which means, for example, that the maximum sickness leave income reimbursement will amount to EUR 721.4264 per month (for an absence lasting the whole month).

Without change in 2016:

  • subsistence minimum – EUR 198.08 per month,
  • tax bonus – EUR 21.41 per month,
  • non-taxable amount per taxpayer – EUR 316.94 per month,
  • tax 19% up to the amount of the tax base – EUR 2,918.53 per month,
  • tax 25 % from the tax base exceeding – EUR 2,918.53 per month,
  • student income – EUR 200 per month which is exempt from contributions to pension insurance.