What is the minimum salary in Slovakia?
The minimum salary in Slovakia in 2023 is 700 EUR per month, with a minimum hourly wage of 4.023 EUR. Contributions to insurance are paid by both the employer and the employee, while the taxable income base is calculated from the employee’s gross salary.
How do I calculate net salary and income tax in Slovakia?
Income tax is calculated from your tax base after the deduction of tax-exempt income, which in 2023 is 410.24 EUR. For example, you calculate the tax base using your gross salary minus the total employment contributions. This amount is the tax base, which you reduce further by 410.24 EUR for tax-exempt employee income. On the remainder, you then pay either 19% or 25% income tax. Your net salary is what remains after all taxes and contributions.
What are the income tax rates in Slovakia?
In 2023, the tax rates for personal income in Slovakia are:
19% - For annual taxable income up to EUR 41,445.46 (excluding income from business activities, capital income, and dividend income)
25% - For annual taxable income exceeding EUR 41,445.46 (excluding income from business activities, capital income, and dividend income)
How much do I pay into social and health insurance?
Both the employee and the employer must contribute to social and health insurance. Employee contributions come from their gross salary, and are as follows.
Social Security Retirement - 4%
Disability Insurance - 3%
Sickness Insurance - 1.4%
Unemployment Insurance - 1%
Health Insurance - 4%
Example employee income tax calculation.
The amount of personal income tax you pay derives from your annual taxable income after tax relief and employment contributions. In 2023, individuals are entitled to claim up to EUR 410.24 per month as tax-exempt income. For example, say your salary is EUR 800 gross per month. Below is how you would calculate your monthly payments, taxes, and remaining net salary.
Health Insurance = EUR 800 x 4% = EUR 32
Sickness Insurance = EUR 800 x 1.4% = EUR 11.20
Retirement Social Security = EUR 800 x 4% = EUR 32
Disability Insurance = EUR 800 x 3% = EUR 24
Unemployment Insurance = EUR 800 x 1% = EUR 8
Total Employment Contributions = EUR 107.20 per month
Gross salary EUR 800 - 107.20 = EUR 660.80 (tax base)
The tax base EUR 660.80 - 410.24 (tax-exempt income) = EUR 250.56 (taxable income)
EUR 250.56 x 19% (employee income tax) = EUR 47.61 income tax per month
Tax base (EUR 660.80) - income tax (47.61) = EUR 613.19 net salary Note: The above calculation is without any additional tax bonuses or tax discounts that would further reduce tax liability.
How much do employers contribute to insurance benefits?
The employer’s contributions on top of gross salary are:
Social Security Retirement - 14%, maximum limit of 1,186.78 EUR
Disability Insurance - 3%, maximum limit of 254.31 EUR
Sickness Insurance - 1.4%, maximum limit of 118.67 EUR
Unemployment Insurance - 1%, maximum limit of 84,77 EUR
Reserve Fund - 4.75%, maximum limit of 402,66 EUR
Guarantee Fund - 0.25%, maximum limit of 21,19 EUR
Accident Insurance - 0.8%, no maximum limit
Health Insurance - 10%, no maximum limit
What are the child tax bonuses in Slovakia?
For each child you have under 18 years of age, the maximum monthly bonus is EUR 140. Parents of children over the age of 18 are entitled to a maximum bonus of EUR 50 per child. It is possible to claim tax bonuses on children until they reach 26 years old. However, the child / children must be an enrolled student, and they must have no source of additional income.
How do I calculate the total tax bonus for children?
In addition to the above maximum bonuses, calculations for children tax bonuses fall under certain percentage rules. These rules set limits to how much parents can receive per child based on the tax base of the parent. For example, if the parent has only one child, they can claim up to 20% of their tax base as the bonus. For subsequent dependent children, the allowance increases. The percentage rules are as follows.
1 child - 20% limit of tax base
2 children - 27%
3 children - 34%
4 children - 41%
5 children 48%
6 and more - 55%
Example of child tax bonus calculation.
Say a taxpayer has three children in total for whom they would like to claim a child tax bonus. Two children are under 18, and the other child is over 18. Taxpayer’s Gross salary is 800 EUR and Tax base is 660.80 EUR. In this case, the calculation would be as follows.
EUR 140 x 2 (for two children under 18) + EUR 50 (for one child over 18) = EUR 330 (before applying the statutory child tax bonus limits)
EUR 660.80 x 34% (the statutory limit for 3 children) = EUR 224.67 (per month the parent is eligible to claim)
