News and Legislative changes from 1.1.2021

Important numbers in HR and Payroll for 2021

Minimal salary:

• Monthly - EUR 623,00
• Hourly (for 40-hour work week) - EUR 3,58

Non-taxable part:

• Monthly - EUR 375,95
• Yearly - EUR 4 511,43

Non-taxable part per spouse:

• Yearly - EUR 4 124,74

Non-taxable part — contribution to supplementary pension savings (3rd pillar):

• Yearly -  EUR 180,00

Tax bonus:

• From 1 January 2021 till 30 June 2021:
  • EUR 46,44 per child up to age of 6 years
  • EUR 23,22 per child above the age of 6 years

• From 1 July 2021 till 31 December 2021:
  • EUR 46,44 per child up to age of 6 years
  • EUR 39,47 per child from 6 years to 15 years
  • EUR 23,22 per child above the age of 15 years

Non-taxable part – SPA care:

The non-taxable deduction for spa care will no longer be in use. It can be used for a decrease of the tax base for the last time for year 2020.

Accident allowance bonus COVID-19:

From 21 November 2020, medical staff, but also other staff or volunteers, who are recognized as „unable to work“ due to COVID19 resulting from the performance of work duties are entitled to an accident allowance bonus.

Surpluses in 2021

With the amendment of the Labour Code, on 1 January 2021, the philosophy of determining compensation for standby duty and the amount of surpluses for Saturdays, Sundays, night work, worse work conditions and holiday for „part time employees (dohodári)" is changed.

These surpluses will no longer be linked to the amount of the minimum hourly wage but will be given with fixed amounts. Therefore, they will not be automatically increased each time the minimum hourly wage increases.

Salary surpluses for work on Saturday in 2021

For each hour worked on a Saturday, the employee shall receive, in addition to the salary earned, a salary surplus of at least EUR 1.79.

Salary surpluses for working on a Sunday in 2021

For each hour worked on a Sunday, the employee shall receive, in addition to the salary earned, a salary surplus of at least EUR 3.58.

Salary surpluses for night work in 2021

Night work is work carried out between 22:00 and 6:00 (see § 98 of the Labour Code). For each hour worked in the night, the employee shall receive, in addition to the salary earned, a salary surplus of at least EUR 1.43.

Standby Duty in 2021

For each hour of inactive part of Standby Duty at the workplace, the staff member shall be paid a wage equal to the proportion of the basic salary, but at least equal to the minimum wage in EUR per hour, i.e. at least EUR 3.58.

For each hour of inactive Standby Duty outside of the workspace, the employee shall receive a salary surplus of at least EUR 0.72.

Salary surpluses for worse work conditions in 2021

The wage compensation for the performance of work in worse conditions, under § 124 of the Labour Code, shall be at least EUR 0,72.

Increase in remuneration for working on a holiday for for „part time employees (dohodári)" in 2021

When working as a „part time employee (dohodár)", there is entitlement for an increase in remuneration of at least EUR 3.58 for work on a holiday.

13th and 14th salary in 2021 transport to the workplace

The 13th salary will not be exempt from Income Tax and Levies in 2021

According to the amendment to Act No. 595/2003 Coll. on Income Tax, effective from 1 January 2021, the 13th salary will not be, from 2021, exempt from Income Tax and will be fully included in the taxable income of the employee.

The 14th salary will not be exempt from Income Tax and Levies in 2021

According to the amendment to Act No. 595/2003 Coll. on Income Tax, effective from 1 January 2021, the 14th salary will not be, from 2021, exempt from Income Tax and will be fully included in the taxable income of the employee.

Transport to workplace

From 1 January 2021, the exemption from Income Tax is granted on the employee‘s nonmonetary income, defined as a transfer to workplace, which is paid by the employer up to a maximum of EUR 60 per month.

If the non-monetary income exceeds EUR 60, the value of the non-monetary surplus exceeding EUR 60 shall be included in the taxable income (partial taxable income) of the employee.

"Taking care of relative" benefit in 2021: Change in the conditions of entitlement for "Taking care of relative" (so called "OCR") compensation from 1 April 2021

The novelization is enlarging the circle of people for who the OČR can be used as follows:

In case the employee is treating a sick relative in the direct line, a sick child who is not a relative in the direct line, a sick sibling, a sick spouse or a sick parent of a spouse whose medical condition, as certified by the competent doctor:

• necessarily requires care of another person; or
• requires care of another person due to the need to provide personal care in the natural environment of the person (long-term OČR benefit)

The provision period of OČR is being extended

From 1 April 2021 the maximum possible provision period for OČR is being extended to 14 calendar days from previous 10 calendar days.

Long-term OČR

From 1 April 2021, a new sickness insurance benefit is introduced - long-term OČR. The aim is to provide care for the sick relative in his home environment; a long-term taking care of relative benefit will be provided to the insured person who is treating sick relative personally and on a daily basis.

This benefit can be provided for a maximum period of 90 calendar days. In the case of the treatment of a relative, several insured persons may rotate and receive this benefit, however the period of provision of the benefit is still 90 calendar days in total.

The insured person may take over the care of a relative from another insured person no sooner than 30 calendar days.

The amount of the benefit shall be 55% of the daily assessment basis, or the probable daily assessment basis, i.e. the same as for a "normal" OČR benefit.

Pregnancy benefit in 2021

Who is entitled to receive pregnancy benefi?

Pregnant future mothers will be entitled to receive a new sickness benefit if they are insured or in a protection period at the beginning of the 27th week prior to the expected date of delivery set by the doctor. The second condition for the granting of a pregnancy benefit is to have completed at least 270 days of contributory sickness insurance in the last two years before the 27th week prior to the expected date of birth.

Pregnancy benefit

The amount of „pregnancy benefit“ per day is 15% of the daily assessment basis (DVZ), or the probable daily assessment basis (PDVZ). The law will also specify the minimum amount of "pregnancy benefit" as 10% of the maximum possible DVZ pursuant to § 55 art. 2. The law does not exclude obtaining the „pregnancy benefit“ and other benefits at the same time.

This benefit is paid by the Social insurance and the employer does not have to take any steps in this regard.

Catering for employees – possible change from 1 march 2021

The National Council of the Slovak Republic currently discusses the changes of the provision of meal for the employees. The proposed Amendment should take effect from 1 March 2021.

Catering for employers

From 1 March 2021, the possible ways of providing the meal for the employees are being extended by providing a financial contribution.

The employee has the right to choose

If the employer does not provide meals in his own canteen or in the canteen of another employer, he shall be obliged to allow the employees to choose between:

• provision of catering in the form of so-called ‘ food vouchers ’; or
• provision of financial contribution for catering.

Employer has a right to set the conditions of the entitlement

The employer has a right to specify in an internal regulation the deadline for making the choice of the above, the minimal period for which the choice of the employee cannot be changed and the guidance what to do in case the employee does not make the choice.

Amount of the financial contribution for catering

If a part of the employees is using the benefit of catering in the employer’s own canteen or in the canteen of another employer, the financial contribution for catering shall be:

• the amount with which the employer contributes to the catering of those employees who are eating in the employer’s own canteen or in the canteen of another employer and at the same time

• minimum of 55% from the amount of 75% of catering provided for a work trip of between 5 and 12 hours under the Travel Compensation Act (EUR 5,10), i.e. currently the minimum of EUR 2,11.

If no staff members are eating in the employer’s canteen or in the canteen of another employer, the financial contribution shall be:

• minimum of 55% from the amount of 75% of catering provided for a work trip of between 5 and 12 hours under the Travel Compensation Act (EUR 5,10), i.e. currently the minimum of EUR 2,11.
• maximum of 55% of catering provided for a work trip of between 5 and 12 hours under the Travel Compensation Act (EUR 5,10), i.e. currently the maximum of EUR 2,81.

* In addition, the employer can increase the amount of the financial contribution for catering from the resources of the Social Fund.

First aid plus for businesses suffering during Covid19 - Contributions to Employers and Self Employed Persons from October 2020

From October 2020, the current 'First Aid' project has shifted into an innovative form for the second wave of the pandemic, called 'First Aid Plus‘.

It is possible to withdraw contributions from the new project from 1 November 2020, for the month of October 2020. Contributions up to September 2020 (including) can be withdrawn under the terms of the initial 'First Aid' project, which was announced in April 2020. Under the new 'First Aid Plus' project, it will be possible to withdraw contributions up to March 2021 (including).

* The new project continues to be divided into 6 measures. For Employers are designated measures No. 1, 3A and 3B.

According to all present measures (1 to 4B), the contributions are increased:

• in the case of the measure No. 1 and 3A, the contributions are increased, from the amount of the wage compensation paid to the employee for the employer’s obstacles to work, to 80% of the labour price calculated from the amount of the wage compensation paid to the employee for the employer’s obstacles to work
• maximum amount per employee and per one month for measure No. 3A increases from €880 to €1,100
• in the case of the measure No. 2, 3B, 4A and 4B, the amount of the contributions is 50% higher than the initial amounts
• in the case of the measure No. 3B, the new maximum allowable contribution has been bounded at 80% of the total labour price of the employee.