Obligatory contributions for social security in Slovenia
Obligatory contributions for social security
Social security contributions are taxes in the broad sense of the word. The essential difference is that social security contributions provide an indirect service, whereas taxes are nonreciprocal. The contributions are structured according to the corresponding service: pension and disability insurance, health insurance, employment and maternity allowances. Correspondingly, the recipients of the contributions are the Institutes or Offices for health, pensions, disabilities etc., not the national budget.
The social contributions system demands payment by all persons with an income. The aforementioned types of contributions represent various levels of insurance. The obligatory minimum is determined by the law, yet there are additional optional types of insurance, which are predominantly contract-based. The payment scheme differs, depending on the work-type relationship:
- Employment contract,
- Self-employed persons,
- Other contractual relationships (service contracts et. al.),
- Student work.
Corporate employment
Employees who work on the basis of an employment contract pay social security contributions. The contributions are deducted from the gross salary at the same time as the employers withhold the tax. The employer deducts the contributions in the name of the employee. Employees whose employer is based in Slovenia are required to contribute to the social security scheme. The structure of the contributions is the following:
|
Type of Social Security Contribution |
Employee’s rate |
Employer’s rate |
|
Pension and Disability Insurance |
15,50% |
8,85% |
|
Health Insurance |
6,36% |
6,56% |
|
Insurance for Parental Protection |
0,10% |
0,10% |
|
Unemployment Insurance |
0,14% |
0,06% |
|
Injury and Illness Insurance |
/ |
0,53% |
|
Total Amount |
22,10% |
16,10% |
Self-Employed
Contributions for social security for self-employed persons are paid from the insurance base, which is regulated by the Pensions and Disability Insurance Act.
Social contributions are payed to Financial administration of Republic of Slovenia. Self-employed persons take on social contribution payments when they register their services in the national registry of self-employed persons. The rate depends on the level of insurance. The minimum calculation base is 60% of the average salary.
Self-employed pay the next contributions:
- Contribution for Pension and Disability insurance
- Contribution for health insurance
- Contribution for insurance for Parental Protection
- Contribution for Paternal Protection
- Contribution for Unemployment insurance
Minimal social contributions for self- employed:
| NAME OF CONTRIBUTION | TAX RATE | PAYMENT |
| Contributions for Pension and Disability insurance | 24,35% | 237,70 EUR |
| Contribution for Health Insurance | 13,45% | 131,29 EUR |
| Other contributions together (Paternal Protection and Unemployment Insurance) |
0,40% | 3,92 EUR |
| Contributions together: | 38,20% | 372,91 EUR |
Maximal contributions for self employed:
| NAME OF CONTRIBUTION | TAX RATE | PAYMENT |
| Contributions for Pension and Disability insurance | 24,35% | 1.386,57 EUR |
| Contribution for Health Insurance | 13,45% | 765,89 EUR |
| Other contributions together (Paternal Protection and Unemployment Insurance) |
0,40% | 22,77 EUR |
| Contributions together: | 38,20% | 2.175,23 EUR |
Contract-based Income and Student Work
Recipients of income based on a contractual relationship other than an employment contract are required to pay social contributions for pension and disability insurance at a 15,5% flat rate. Moreover, a 8,85% flat rate is paid by the ‘employer’ – the other contractual party.
Read also:
- Establishing a company in Slovenia
- Sole Trader or Limited Liability Company
- Work permit and residence permit in Slovenia
- Virtual office in Ljubljana Slovenia
- Corporate taxation in Slovenia
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