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February 20, 2018 | News February 2018 | Important amendment to the Slovak Labor Code: Changes in the amount of premium pay & Introduction of a voluntary 13th and 14th salary

On February 14, 2018, the Slovak Parliament adopted an amendment to the Slovak Labor Code. The amendment will enter into force on May 1, 2018. We present the most important changes introduced by the amendment.

(i) As of May 2018 (and then, again, as of May 2019), night premium pay will be increased. As of May 2018, premium pay for work on weekends will be introduced (its amount will again be increased as of May 2019). Further, beginning on May 2018, premium pay for work on public holidays will be increased.

The table below summarizes the relevant changes in the premium pay amounts.

PREMIUM PAY Current Situation (until April 30, 2018) From May 1, 2018 to April 30, 2019 From May 1, 2019
For night work (10:00 p.m. to 6:00 a.m.) 20% of hourly minimum wage – for non-hazardous work: 30%[1] of hourly minimum wage

– for hazardous work: 35% of hourly minimum wage

– for non-hazardous work: 40%[2] of hourly minimum wage

– for hazardous work: 50% of hourly minimum wage

For work on Saturdays (currently no mandatory premium pay exists for Saturday work) – general rule: 25% of hourly minimum wage

– exception: 20% of hourly minimum wage if so agreed (a) in a collective agreement, or (ii) in a contract of employment (provided that the employer employs fewer than 20 employees)

– general rule: 50% of hourly minimum wage

– exception: 45% of hourly minimum wage if so agreed (a) in a collective agreement, or (ii) in a contract of employment (provided that the employer employs fewer than 20 employees)

For work on Sundays (currently no mandatory premium pay exists for Sunday work) – general rule: 50% of hourly minimum wage

– exception: 40% of hourly minimum wage if so agreed (a) in a collective agreement, or (ii) in a contract of employment (provided that the employer employs fewer than 20 employees)

– general rule: 100% of hourly minimum wage

– exception: 90% of hourly minimum wage if so agreed (a) in a collective agreement, or (ii) in a contract of employment (provided that the employer employs fewer than 20 employees)

For work on public holidays 50% of the employee’s average salary 100% of the employee’s average salary 100% of the employee’s average salary

(ii) The amendment introduces a possibility for the employer to voluntarily pay a 13th (payable in June) and 14th salary (payable in December) to the employees. If certain conditions are met, the 13th and 14th salary will enjoy a preferential treatment from the perspective of taxes and health/social insurance contributions.

(iii) Employers will be required to indicate the amount of the base salary in job advertisements.

[1] Exception: 25% of hourly minimum wage if so agreed (a) in a collective agreement, or (ii) in a contract of employment (provided that the employer employs fewer than 20 employees), in both situations under the condition that the major part of the employer’s operations is conducted during the night.

[2] Exception: 35% of hourly minimum wage if so agreed (a) in a collective agreement, or (ii) in a contract of employment (provided that the employer employs fewer than 20 employees), in both situations under the condition that the major part of the employer’s operations is conducted during the night.