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January 11 2018
FINANCIAL ADMINISTRATION OF THE REPUBLIC OF SLOVENIA
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Source: http://www.doksinet REPUBLIC OF SLOVENIA MINISTRY OF FINANCE FINANCIAL ADMINISTRATION OF THE REPUBLIC OF SLOVENIA Šmartinska cesta 55, PO Box 631, 1001 Ljubljana, Slovenia T: +386 1 478 38 00 F: +386 1 478 39 00 E: gfu.fu@govsi www.fugovsi SOCIAL SECURITY CONTRIBUTIONS Questions & Answers 1ST version, MARCH 2016 Source: http://www.doksinet TABLE OF CONTENTS Question 1: What social security contributions do I have to pay when I am employed on the basis of the employment contract in Slovenia as a nonresident?. 3 Question 2: How are social security contributions paid in Slovenia? . 4 Question 3: What social security contributions do I have to pay if I receive income from employment on the basis of other contractual relationship and not on the basis of employment contract? . 4 2 Source: http://www.doksinet Question 1: What social security contributions do I have to pay when I am employed on the basis of the employment contract in Slovenia as a nonresident? Answer
Employees in an employment contract with their employer situated in Slovenia are required to pay social security contributions in Slovenia regardless of their tax residency status, if they are required to integrate into the social security system of Slovenia. This depends on EU Social Security Coordination rules for workers from EU Member States and on bilateral treaties on the social security for workers from other counties. Social security system in Slovenia consists of 5 types of compulsory social security contributions instituted by the Social Security Contributions Act. The types and the rates of contributions the employees and the employers are required to pay can be found in the following table: Type of Social Security Contribution Pension and Disability Insurance Health Insurance Insurance for Parental Protection Unemployment Insurance Injury and Illness Insurance Total Amounts Employee’s rate Employer’s rate 15,50% 8,85% 6,36% 0,10% 6,56% 0,10% 0,14% / 22,10% 0,06%
0,53% 16,10% The base from which the social security contributions (for employees and employers alike) are paid is determined by the gross amount of income from employment based on the employment contract. Social security contributions on certain types of income from employment based on the employment contract (benefits in kind) are only paid when such income surpasses the amounts determined by the Decree on the level of work-related expenses and other expenses not included in the tax base set by the government. These types of income are: award for career jubilee, severance pay, solidarity payment, supplemental insurance for retirement and workrelated expense reimbursement. On other benefits in kind social security contributions are paid on their determined gross amounts except for the vacation allowance. Social security contributions in this case are only paid, when the gross vacation allowance surpasses 70% of the average salary in Slovenia two months prior to the payment. The base
from which social security contributions are paid cannot be lower than the minimal base, set by the Pension and Disability Insurance Act: • • • • • from 2015 – 2017: 52 % of the amount of the last known average annual wage of employees in the Republic of Slovenia, calculated per month (AW): from 2018: 54 % AW, from 2019: 56 % AW, from 2020: 58 % AW, from 2021: 60 % AW. 3 Source: http://www.doksinet Question 2: How are social security contributions paid in Slovenia? Answer Employees that work on the basis of the employment contract pay social security contributions at the same time as the tax is withheld by their employers. Upon the calculation and payment of the salary the employer has to withhold the social security contributions in the name of the employee for the employee’s share of contributions and in its own name for its share of contributions. Social security contributions for self-employed persons are paid from the insurance base, defined by the Pension and
Disability Insurance Act. The insurance base in the current year is defined in relation to the profit earned by the individual self-employed person in the previous year and by taking into consideration data about the average and minimum wage. Selfemployed persons shall calculate and pay all the contributions by themselves The rates of contributions that apply to self-employed persons are equal to the rates paid by both employees and employers as displayed in the table above (the answer to question no. 1) Question 3: What social security contributions do I have to pay if I receive income from employment on the basis of other contractual relationship and not on the basis of employment contract? Answer a) Contributions for pension and disability insurance If the recipient of income from other contractual relationship does not have full time compulsory pension and disability insurance from other legal basis or if they are not pensioners, they have to pay contributions for pension and
disability insurance from such income, at rates, listed in the table below: For pension and disability insurance Contribution of the insured person Contribution of the employer 15,50 % 8,85 % From income based on other contactual relationship, the contributions for pension and disability insurance do not have to be paid, if the legislation of another country for all compulsory social security insurance applies based on the EU Regulation 883/2004 and the taxpayer is also employed or runs his own business in that other EU country. If this is the case, the legislation of the Republic of Slovenia does not apply. This applies to all cases where the foreign insurance institution issues the form A1, which determines that another EU Member States legislation must be applied. When the EU Regulation 884/2004 does not apply (for example for taxpayers from third countries), the taxpayer has to pay contributions for pension and disability insurance from other contractual relationship. The
rates are listed in the table above b) Contributions for health insurance If the recipient of income has the compulsory health insurance in Slovenia, they have to pay the contribution at the rate of 6,36 % from every income received (Article 15 and 20 of the Health Care and Health Insurance Act). 4 Source: http://www.doksinet If the recipient of income is not obligated to have the compulsory health insurance in Slovenia (Articles 15 and 20 of the Health Care and Health Insurance Act), the health care contribution does not have to be calculated and paid. 5
Employees in an employment contract with their employer situated in Slovenia are required to pay social security contributions in Slovenia regardless of their tax residency status, if they are required to integrate into the social security system of Slovenia. This depends on EU Social Security Coordination rules for workers from EU Member States and on bilateral treaties on the social security for workers from other counties. Social security system in Slovenia consists of 5 types of compulsory social security contributions instituted by the Social Security Contributions Act. The types and the rates of contributions the employees and the employers are required to pay can be found in the following table: Type of Social Security Contribution Pension and Disability Insurance Health Insurance Insurance for Parental Protection Unemployment Insurance Injury and Illness Insurance Total Amounts Employee’s rate Employer’s rate 15,50% 8,85% 6,36% 0,10% 6,56% 0,10% 0,14% / 22,10% 0,06%
0,53% 16,10% The base from which the social security contributions (for employees and employers alike) are paid is determined by the gross amount of income from employment based on the employment contract. Social security contributions on certain types of income from employment based on the employment contract (benefits in kind) are only paid when such income surpasses the amounts determined by the Decree on the level of work-related expenses and other expenses not included in the tax base set by the government. These types of income are: award for career jubilee, severance pay, solidarity payment, supplemental insurance for retirement and workrelated expense reimbursement. On other benefits in kind social security contributions are paid on their determined gross amounts except for the vacation allowance. Social security contributions in this case are only paid, when the gross vacation allowance surpasses 70% of the average salary in Slovenia two months prior to the payment. The base
from which social security contributions are paid cannot be lower than the minimal base, set by the Pension and Disability Insurance Act: • • • • • from 2015 – 2017: 52 % of the amount of the last known average annual wage of employees in the Republic of Slovenia, calculated per month (AW): from 2018: 54 % AW, from 2019: 56 % AW, from 2020: 58 % AW, from 2021: 60 % AW. 3 Source: http://www.doksinet Question 2: How are social security contributions paid in Slovenia? Answer Employees that work on the basis of the employment contract pay social security contributions at the same time as the tax is withheld by their employers. Upon the calculation and payment of the salary the employer has to withhold the social security contributions in the name of the employee for the employee’s share of contributions and in its own name for its share of contributions. Social security contributions for self-employed persons are paid from the insurance base, defined by the Pension and
Disability Insurance Act. The insurance base in the current year is defined in relation to the profit earned by the individual self-employed person in the previous year and by taking into consideration data about the average and minimum wage. Selfemployed persons shall calculate and pay all the contributions by themselves The rates of contributions that apply to self-employed persons are equal to the rates paid by both employees and employers as displayed in the table above (the answer to question no. 1) Question 3: What social security contributions do I have to pay if I receive income from employment on the basis of other contractual relationship and not on the basis of employment contract? Answer a) Contributions for pension and disability insurance If the recipient of income from other contractual relationship does not have full time compulsory pension and disability insurance from other legal basis or if they are not pensioners, they have to pay contributions for pension and
disability insurance from such income, at rates, listed in the table below: For pension and disability insurance Contribution of the insured person Contribution of the employer 15,50 % 8,85 % From income based on other contactual relationship, the contributions for pension and disability insurance do not have to be paid, if the legislation of another country for all compulsory social security insurance applies based on the EU Regulation 883/2004 and the taxpayer is also employed or runs his own business in that other EU country. If this is the case, the legislation of the Republic of Slovenia does not apply. This applies to all cases where the foreign insurance institution issues the form A1, which determines that another EU Member States legislation must be applied. When the EU Regulation 884/2004 does not apply (for example for taxpayers from third countries), the taxpayer has to pay contributions for pension and disability insurance from other contractual relationship. The
rates are listed in the table above b) Contributions for health insurance If the recipient of income has the compulsory health insurance in Slovenia, they have to pay the contribution at the rate of 6,36 % from every income received (Article 15 and 20 of the Health Care and Health Insurance Act). 4 Source: http://www.doksinet If the recipient of income is not obligated to have the compulsory health insurance in Slovenia (Articles 15 and 20 of the Health Care and Health Insurance Act), the health care contribution does not have to be calculated and paid. 5
