13 June 2013: Payroll and Employment Services in Slovenia

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17 July 2013: Payroll and Employment Services in South Korea
17th July 2013

Compandben’s International HR Services

Slovenia Country Partners –

 

Payroll/ Employment Services – Slovenia

The Compandben country partner in Slovenia has been in existence since 2005. It has 5 employees. It has 25 active clients and performs payroll administration for 250 employees each month. Some well known clients are JTI, Lafarge, Peugeot, Citrix, Samsung and Volvo trucks.

 

It provides a range of services including

• Payroll Administration
• Employment Services where we will employ individuals for firms that do not want to directly employ staff
• Tax efficient salary structures
• HR Advice, employment Contracts
• Remuneration and Benefits advice, survey and implementation
• Expatriate Administration – including split payrolls and home/host social security
• Work permits for foreign employees
• Assisting clients when establishing companies in Slovenia

COUNTRY DATA

If you are thinking of employing someone in Slovenia you need to remember the following: and understand the various mandatory payments you’re obliged to include in the final cost per person.

1. It is possible for a foreign company to be registered as an Employer in Slovenia without having to set up a legal entity.

2. Apart from very senior executives, pension arrangements are normally provided by the local State. Private pensions are rare. Be careful not to automatically assume that employees will need private pensions, life insurance, health insurance, “401k” type plans, common in USA, etc

3. Payment of salaries is normally monthly. Semi monthly payments, common in USA are almost unheard of and may pose problems in calculating paysheets. They are possible but with a great reporting hassle.

4. Total MANDATORY “add on” for Employer social charges is around 16,1 % of gross salary. This includes unemployment insurance, pension, medical insurance, and accident insurance.

5. Additional Medical coverage insurance is occasionally provided in multinationals.. Some companies provide this at no charge; some require employees to pay a part of the premium. The private medical coverage can complement. The provision of medical coverage is not tax effective – it is seen as a taxable benefit.

6. Tax is normally withheld at source through the payroll.

7. The employment contract must be in Slovene local language. We can provide draft contracts for you.

8. Social charges payable by the employee and deducted from salary are around 22,1 % of gross pay. The taxable salary is then the Gross minus the Employee Social contributions. . Simulations are available on our local partner’s web site and they have developed an iPhone/iPad free App.

COUNTRY TERMS AND CONDITIONS

A. WORKING HOURS – In Slovenia the working hours are normally 40 hours per week. Overtime rates start at 1.3 the normal hourly rate and rise to 2.0 the normal hourly rate for Sundays and official holidays.

B. VACATION – The minimum annual vacation is 20 working/calendar days and the usual vacation level granted is 20 days. Employees can over vacation from one year to the next (and use it until the end of June the next year). If vacation is not taken by a certain date it can be deemed forfeited There are 11 NATIONAL HOLIDAYS.

C. PROBATIONARY PERIOD -The probationary period is normally 1 month and cannot be longer than 6 months.

D. TERMINATION PAYMENTS – If the employee is dismissed, the severance payment ranges around 1/5 of a month’s salary per year of service.

Contact Compandben or visit Compandben Main Website – Payroll/ Employment – Slovenia for more information.

John Tinsley

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