G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Slovenia. Your candidate is hired via G-P’ Slovenia PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our solution enables customers to run payroll in Slovenia while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Slovenia.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
Slovenia is located in Central Europe and has a population of 2 million. Slovene is the national language, but 92% of the population speaks at least two languages and 72% speaks at least three languages.
When negotiating the terms of an employment contract and offer letter with an employee in Slovenia, it may be useful to keep the following standard benefits in mind:
Employment Contracts in Slovenia
The general rule in Slovenia is that employment contracts are executed for an indefinite duration. Fixed-term contracts are also allowed for a specific project, either to replace an employee who is temporarily absent or as a result of a temporary increase in work load, They cannot exceed a period of 2 years.
A draft of the employment contract should be given to the prospective employee three days before the start date, and it should be signed on the start date. The contract should be in the local language and spell out the terms of the employee’s compensation, benefits, termination requirements, and a list of collective bargaining agreements that pertain to the contract. An offer letter and employment contract in Slovenia should always state the salary and any compensation amounts in Euro rather than a foreign currency.
This information is provided as generally accepted information and is not intended as advisory services.
Working Hours in Slovenia
The standard work week in Slovenia consists of up to 8 hours per day, 40 hours per week. Working hours may not exceed 48 hours per week including overtime. Overtime generally should not exceed 8 hours per week, 20 hours per month, or 170 hours per year.
Holidays in Slovenia
Slovenia celebrates 11 public holidays for which employees are given the day off, including:
- New Year’s Day
- Culture Day
- Easter Monday
- Resistance Day
- May Day
- Statehood Day
- Assumption Day
- Reformation Day
- All Saints’ Day
- Christmas Day
- Independence Day
Vacation Days in Slovenia
Employees are generally entitled to four weeks of paid annual leave. Workers over the age of 55, the disabled, and caretakers are eligible for at least an additional three days leave, depending on the collective agreement.
Workers are also generally entitled to up to seven days of paid personal leave.
Slovenia Sick Leave
Workers who present a medical certificate are generally entitled to unlimited time of for illness or injury.
If the absence is not due to a work related illness or injury, the employee is entitled to 80% of his/her prior month’s salary.
If the absence is due to work, the employee is entitled to receive 100% of his/her pay, based on the average salary from the prior three months. The employee receives pay until s/he is determined to be permanently disabled and the employment contract is terminated as a result.
The employer pays for the leave for the first 30 work days. The state generally pays the leave from then on.
Maternity/Paternity Leave in Slovenia
Female employees are generally entitled to 105 days of paid maternity leave, which must start 28 days prior to the expected delivery date, if:
- she has been insured at least one day prior to beginning the leave
or
- the contributions to parental protection insurance have been made for a period of at least 12 months in the last three years prior to claiming the leave.
The employee’s maternity pay is based on an average of her salary, but must be at least 55% of Slovenia’s minimum net monthly wage.
Employees are entitled to 30 days of spousal leave, regardless of gender. If Slovenian economic growth exceeded 2.5% of GDP in the year before or the year of the birth, the spouse is then generally entitled to 90 days of leave, the first 15 of which is paid provided:
- the employee was insured at least one day prior to entering into the leave
or
- the contributions to parental protection insurance had been made for a period of at least 12 months in the last three years prior to claiming the leave.
The employee’s paid paternity leave is based on an average of the employee’s salary, but it must be more than 55% of Slovenia’s minimum net monthly wage. The paid leave cannot exceed two times the average monthly Slovenian salary per month.
After the maternity leave has been taken, parents are entitled to share 260 days of child care leave (30 of these days must be taken by the mother.) Up to 75 days of the leave can be transferred and used until the child is 8 years of age. The amount of the paid parental leave is calculated based on an average of the employee’s salary, though there is a minimum amount of 55% of the minimum net monthly wage in Slovenia and a maximum amount prescribed for parental leave in the amount of 2 times the average monthly salary in Slovenia per month.
Parents caring for a disabled child up to 18 years of age or a child with a moderate to severe mental disorder have the right to work part-time. If an employee is caring for a child of at least 7 years of age with a moderate to severe mental or physical disability, that parent is entitled to at least 15 days or up to 6 months of paid leave. An employee caring for an ill spouse can take 7 to 14 days of paid leave.
Each adoptive parent is entitled to 130 days of leave that can be taken until the child completes their first grade of primary school.
Health Insurance in Slovenia
Slovenia has compulsory public health insurance and supplemental private health insurance.
Slovenia Supplementary Benefits
Additional private health insurance coverage is typically not provided by employers.
Large corporations typically provide meal vouchers to their employees.
Bonuses
Common bonuses to include in employee contracts are:
- 13th salary, considered a gratuity and not required by law
- Christmas bonus
- Jubilee bonus, amount usually dependent on length of service
- Performance-based bonus
Termination/Severance in Slovenia
The employer can set a probationary period in the employment contract of up to 6 months. A notice period of 7 days must be provided if an employee is terminated during the probationary period.
If an employee is dismissed for business reasons or employee incompetence, the following notice periods apply:
- 15 days if employed up to 1 year
- 30 days if employed more than 1 year but less than 2 years
- 30 days plus two days for each additional year of service over 2 years, up to a maximum of 60 days if employed for more than 2 years
- 80 days if employed for 25 years or more
If an employee is dismissed for business reasons or as a result of incompetence, they are entitled to severance pay in the following amounts:
- 1/5th of the employee’s basic monthly salary for each year of service if employed for at least 1 year or up to 10 years.
- 1/4th of the employee’s basic monthly salary for each year of service if employed for more than 10 years and up to 20 years.
- 1/3rd of the employee’s basic monthly salary for each year of service if employed for more than 20 years
- There is severance pay limit of 10 times the employee’s basic monthly salary stipulated by law. Severance pay for fixed-term contracts may also apply.
Paying Taxes in Slovenia
Both employees and employers pay into social security at the following rates:
- Pension and disability insurance (employee 15.5%, employer 8.85%)
- Health insurance (employee 6.36%, employer 6.56%)
- Parental protection (both pay 0.10%)
- Employment (employee 0.14%, employer 0.06%)
- Injury at work and occupational disease (the employer pays 0.53%)
Employee total: 22.10%
Employer total 16.10%
Why G-P
Establishing a branch office or subsidiary in Slovenia to engage a small team is time-consuming, expensive and complex. Slovenian labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. G-P makes it painless and easy to expand into Slovenia. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Slovenia PEO and Global Employer of Record solution provides you peace of mind so that you can focus on running your company.
If you would like to discuss how G-P can provide a seamless employee leasing or PEO solution for hiring employees in Slovenia, please contact us.