Insurance contributions

The system of insurance contributions in Slovakia consists of compulsory premiums for health insurance (health contributions) and social insurance (social insurance contributions). The legislation for these contributions is contained in Law No. 580/2004 Coll. On Health Insurance as Amended and Law No. 95/2002 Coll. On Insurance and on Amendments to Certain Laws as Amended (hereinafter referred to as the ‘Health Insurance Act’) and Act No. 461/2003 Coll. On Social Insurance as Amended (hereinafter referred to as the ‘Social Insurance Act’).

Contributions are mandatory for self-employed individuals in Slovakia if they have earned income from business or other self-employment in the course of a calendar year, and employees from their wages. Liabilities for contributions to social insurance and health insurance fall upon both the employee and the employer.

1. Contribution obligations for self-employed individuals

Health insurance contributions

According to the Health Insurance Act, the obligation to pay the insurance premium arises from the date at which the insured person becomes a self-employed individual. Health insurance premiums are paid in monthly instalments during the calendar year, with premiums falling due by the 8th day of the following calendar month. Paid instalments are accounted for in the annual premium settlement which is made by health insurance companies after the end of the calendar year. The annual settlement for 2016 will be sent by the relevant health insurance institution in 2017, which will specify the value of the advance payments for 2018 and will inform the self-employed individual if he/she has incurred any overpayments or arrears.

Social insurance contributions

The obligation of a self-employed individual to pay contributions to social insurance contributions falls due on 1st July of the calendar year following the commencement of his/her business activities, or on 1st October of the following calendar year if the self-employed individual has been granted an extension for submitting a tax return. A self-employed individual is not required to notify the social insurance institution about the commencement of his/her business activities or other self-employment.

In 2017, self-employed individuals will be obliged to pay the insurance premium if their total taxable income from business and other self-employment in 2016 exceeded a value equivalent to 50% of the average Slovak personal income for 2015 (i.e. 12 times the average monthly salary in the economy of the SR in 2015). If self-employed individuals declared income in 2016 from business and from other self-employment in excess of €5,298, they would be obliged to pay social insurance premiums from 1 July 2017 or from 1 October 2017 if they had been granted an extended filling date. In the event that the self-employed individual becomes subject to the obligation to pay the premium from 1 July 2017, the first social insurance premium would fall due by the 8th day of the following calendar month, i.e. by August 8, 2017.

Contribution rates for health insurance contributions

As of 2017, the minimum monthly contribution for self-employed individuals who are not employees or state dependents is 14% of the Slovak minimum tax base of €441.50. It thus follows that each self-employed individual is required to make monthly health insurance contributions of at least €61.81.

As of 1st January 2017, no maximum level of health insurance contribution exists for self-employed individuals, as an amendment to the Health Insurance Act introduced the concept of no caps on insurance contributions on the basis of income levels from business or other self-employment.

Contributions rates for social insurance

Self-employed individuals who are required to make contributions to social insurance do so at the following rates:

• 4 % of tax base to sickness insurance,
• 18 % of tax base to retirement insurance,
• 6 % of tax base to invalidity insurance,
• 75 % of tax base to the solidarity reserve fund.

Self-employed individuals pay social insurance premiums rather than the pre-payment arrangement by which they make health insurance contributions. Contributions are not accounted at the end of the year and thus self-employed individuals can have neither arrears nor overpayments from the foregoing year. According to the Social Insurance Act, self-employed individuals are obliged to pay social insurance premiums amounting to 33.15% of their tax base calculated on the basis of tax return data submitted for the previous calendar year.

The Social Insurance Act further specifies that the minimum and maximum social insurance premiums are always changed as of 1st January of each calendar year, but the obligation to pay the premium and the amount of the premiums of a particular self-employed individual is assessed on 1st July of each calendar year, or on 1st October of the calendar year if the self-employed individual has been granted an extension for submission of their tax return.

As of 1st July 2016, self-employed individuals were obliged to pay minimum social insurance premiums of €142.20, but this was to increase to €146.35 as of 1st January 2017 in line with the legislated increase in the minimum tax base. Self-employed individuals are obligated to pay the increased premiums by 8th February 2017 at the latest.

Minimum and maximum insurance contributions for self-employed individuals from 1.1.2017

2. Employee and employer contributions

Like self-employed individuals, employees also make contributions to health and social insurance which are deducted from their net salaries. Simultaneously, employers are also required to make monthly contributions to relevant health and social insurance authorities on behalf of their employees.

Assessment basis for the purposes of health and social insurance in 2017

The basis for the calculation of health and social insurance contributions of employees and employers is not the same as that used for self-employed individuals, but is instead based on the statutory minimum wage in Slovakia for the relevant period. Thus for 2017, the minimum basis of the assessment of employees and employers for social and health insurance purposes is the sum of €435.00.

Since 1st January 2017 there has been no maximum benchmark for the calculation of health insurance contributions for employees and employers since this had been abolished by the amendment to the Health Insurance Act.

Under the terms of the Social Insurance Act, the maximum benchmark for the calculation of employer and employer social insurance contributions for 2017 is set at 7 times the average monthly wage of an employee in the economy of Slovakia for 2015, meaning that the maximum basis of assessment for the purposes of social insurance is €6181.

Contribution rates for health insurance

The minimum monthly employee contribution for 2017 is 4% of the national minimum wage of € 435.00. This means that in 2017 every employee is required to make a minimum monthly health insurance contribution of €17.40. As of 1st January 2017, there was no stipulated maximum limit to employee health insurance contributions.

As of 1st January 2017, employers are required to make a minimum health insurance contribution on behalf of each employee equivalent to 10% of the national minimum wage, which amounts to €43.50. There is no maximum limit to contributions and this is dependent on the level of employee salary.

Contribution rates for social insurance

In 2017 the minimum social security insurance contribution for employees is 9.4% of the national minimum wage of €435.00, which means that each employee is obliged to pay the social insurance premium of at least €40.89. The maximum contribution is €581.01.

In 2017 the minimum social insurance contribution paid by employers on behalf of each employee is 25.2% of the national minimum wage of €435.00, which amounts to €109.61. The maximum permitted contribution is €1557.59.

Minimum and maximum insurance contributions for employees from 1.1.2017

Minimum and maximum insurance contributions for employers from 1.1.2017