Employer of Record in Slovenia

Hiring in Slovenia for the first time can be overwhelming, especially when navigating unfamiliar employment laws. Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success. Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Slovenia in the following three ways:

• Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Slovenia.
• Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Slovenia’s labor laws and tax regulations.
• Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Businesses can only operate smoothly in Slovenia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Slovenia below, to avoid any compliance issues.

Employment Contract Requirements

Employment contracts in Slovenia must be written in Slovenian, although bilingual contracts are acceptable. These agreements should clearly outline crucial terms such as:

• Salary
• Working hours
• Probation period
• Termination details
• Confidentiality obligations
• Other relevant provisions

Onboarding Process

We can help you get a new employee started in Slovenia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Slovenia

A standard workweek in Slovenia is 40 hours - must be at least 36 hours for full-time employment. An employees weekly working time must be spread over at least 4 days, with a 5-day workweek being most common.

Overtime in Slovenia

Overtime in Slovenia is work exceeding the standard 40-hour weekly limit. It can only be requested under exceptional circumstances, documented in writing. Limits apply: 8 hours per week, 20 hours per month, and 170 hours annually. Overtime is not available to all categories of employees, certain limits apply.

Probation Period in Slovenia

Probation periods in Slovenia are optional, with a minimum duration of 30 days and a maximum of 180 days (6 months).

Fiscal Year in Slovenia

1 January - 31 December is the 12-month accounting period that businesses in Slovenia use for financial and tax reporting purposes.

Payroll Cycle in Slovenia

The payroll cycle in Slovenia is usually monthly, with employees being paid on the last working day of each month..

Minimum Wage in Slovenia

The minimum wage for employees in Slovenia is typically 7.84 EUR per hour, amounting to ~1,253.90 EUR per month for a typical 40 hour work week.

Bonus Payments in Slovenia

In Slovenia, 13th-month payments are not mandatory.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 16.64% on top of the employee salary in Slovenia.

Employee Payroll Tax Contributions

In Slovenia , the typical estimation for employee payroll contributions cost is around 22.1%.

Individual Income Tax Contributions

The individual income tax in Slovenia ranges from 16% to 50%, calculated based on progressive rates. Various factors, including household status and the number of children, can influence the overall tax rates.

Pension in Slovenia

In the Republic of Slovenia, the pension system operates on the principle of intergenerational solidarity. Individuals who reach the specified age and meet the requisite number of years in the pension qualifying period are eligible for an old-age pension.

Mandatory Leave Entitlement in Slovenia

The annual leave entitlement in Slovenia is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Slovenia

Slovenia has 15 national holidays:

Paid Time Off in Slovenia

Both full-time and part-time employees in Slovenia are entitled to 20 working days of paid time off (PTO) per year, accruing monthly at a rate of 1.66 days.

Maternity Leave In Slovenia

Employees in Slovenia are entitled to 105 days of maternity leave. Maternity leave should commence 28 days before the birth date and 77 days after childbirth. The Health Insurance Institute will cover the base salary during this period subject to the minimum and maximum salary caps.

Paternity Leave In Slovenia

Employees in Slovenia are entitled to 30 days of paternity leave, which should commence after the birth of the child. During this period, the government will pay the salary, calculated based on the average monthly wage of the past 12 months subject to the applicable caps.

Sick Leave In Slovenia

There is no limitation to sick leave in Slovenia as long as the employee presents a medical certificate. If the illness or injury is work-related, the employer covers the first 30 days, after which it is covered by social security. The amount of payment depends on the reason for sick leave.

Parental Leave In Slovenia

Employees in Slovenia are entitled to 130 days of parental leave each (260 days in total). This entitlement may be extended in specific circumstances, such as the birth of twins or more children simultaneously, the premature birth of a child, or if a child requires additional care.

Termination Process in Slovenia

According to the Employment Relationships Act , employers are required to provide advance notice before terminating an employee. Dismissal must be objectively justified based on factors related to the business, the employer, or the employee.

Notice Period in Slovenia

In Slovenia, the notice period varies based on the employee's seniority:

• 7 days' notice for dismissal during probation period
• 15 days' notice for up to 1 year of service
• 30 days' notice for 1 to 2 years of service
• 80 days notice for above 25 years of service.

Severance in Slovenia

If an employee's contract is terminated due to business reasons (such as redundancy, organizational changes, or economic difficulties) or if the employee becomes permanently unable to perform their job due to medical reasons, severance pay is mandatory. The minimum period of continuous employment required for acquiring severance payment is one year.

• 1/5 of average monthly salary for employment between 1 and 10 years
• 1/4 of average monthly salary for employment over 10 and less than 20 years
• 1/3 of average monthly salary for employment over 20 years