Setting up and running a payroll in Slovakia
Slovakia, officially known as the Slovak Republic, is an exciting country with a rich culture and a growing economy, making it an excellent place for foreign businesses to expand and grow their international presence.
If your business is planning an expansion into Slovakia, it is likely that you’ll need to employ a local workforce and set up an in-country payroll. To do this, you will generally need to establish an entity in Slovakia and follow the country’s unique set of business and employment regulations. This can be a long and drawn-out process, potentially causing delays to your expansion efforts and resulting in spiraling costs.
At Horizons, we offer full Slovakia payroll outsourcing services for organizations expanding into the country, whether you have already registered a legal entity in Slovakia or not.
Why choose the Horizons payroll solution?
If you have an entity
For any organization that already has an official entity in Slovakia, we can set up and run your in-country payroll, managing everything from HR to contracts and compliance work.
This is a great option for larger businesses and those aiming for a medium to long-term operation in Slovakia.
If you don’t have an entity
For organizations that have not yet established an entity in Slovakia, we offer a comprehensive payroll outsourcing service using our Slovakian subsidiary to act as employer of record, while also taking care of HR, contracts, and legal compliance.
This flexible service helps you to achieve all the key benefits of hiring locally in Slovakia, without the risk.
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Slovakia payroll guide
Taxation and withholdings in Slovakia
Employers in Slovakia are required to contribute 35.2% of salaries toward the country’s social security program. Employees are required to contribute 13.4%. The social security program funds things like sick pay, unemployment insurance, and healthcare.
The income tax rate in Slovakia is 19% to 25%, depending on income level.
The corporate tax rate in Slovakia is 21% for companies with revenues exceeding €100,000 per year.
Entitlements and terminations rules in Slovakia
Employees in Slovakia are entitled to two months of notice upon termination. They may also be entitled to severance pay, for example, if they are made redundant or if the company is dissolved.
The payment should be between four and ten times normal monthly pay, depending on how long the employee has been with the company and the context of the termination.
How to establish a Slovakia payroll
Setting up a payroll and hiring in Slovakia can be a drawn-out and complex process. You will potentially need to establish a Slovakian entity, then you will need to closely adhere to all the relevant regulations, which includes both EU and Slovakian law. An alternative to this process is to outsource your Slovakia payroll setup and management.
At Horizons, we provide extensive Slovakia payroll outsourcing services, giving businesses everything needed to stay compliant and successfully expand into the country. For organizations without a registered entity in Slovakia, we can also use our Slovakian subsidiary to act as employer of record for your Slovakian employees.
Manage payroll in Slovakia
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.