Employer's contribution to recreation

With the holiday season approaching, more and more employers are dealing with the topic of regeneration and holidays of their employees.

We bring to your attention a summary of the legislative framework on the topic of the Employer's contribution to recreation in 2022.

The provision of an allowance for employee recreation (§ 152a of Act No. 311/2001 ZP) applies to employers who employ more than 49 employees. This obligation follows from the law.

Conditions for entitlement to recreation allowance and recreation voucher in 2022

  • the employee's employment with the employer lasts continuously for 24 months (as of the day the vacation starts)
  • the employee works on the basis of an employment contract
  • the employee is employed by an employer who employs 50 or more employees
  • the employee submitted a request for a recreation voucher contribution
  • the employee submitted the correct accounting documents on recreation

The amount of the recreation allowance in 2022

  • the allowance for recreation is in the amount of 55% of authorized expenses for recreation, but a maximum of €275 per calendar year
  • if the employee works part-time, the amount of the recreation allowance is reduced in proportion to the shorter working hours.

Levies and taxes on recreation allowance:

  • according to § 5 par. 7 letters b) Act no. 595/2003 Coll. about tax, the amount of this contribution (max. €275 per year) is exempt from paying taxes and levies by employees and employers

Eligible expenses incurred for recreation

  • tourism services associated with accommodation for at least two overnight stays in the Slovak Republic
  • stay package containing accommodation for at least two nights and catering services, or other services related to recreation in the Slovak Republic
  • accommodation for at least two overnight stays in Slovakia, which may include catering services
  • organized multi-day activities during school holidays (children's camp) on the territory of the Slovak Republic for the child of an employee attending elementary school, or one of the first four grades of eight-year high schools

The employee is entitled to a recreation allowance even if he participated in recreation for several nights in a row in several accommodation facilities.

Proven expenses spent on recreation are also expenses, e.g. for catering services, wellness services, spa and health services, entrance to the fitness center, guide services, tickets for cable cars and lifts, entrances to swimming pools..., but they must be related to accommodation and must be part of the accounting document where the name of the employee is indicated.

The employer will also provide a contribution for eligible expenses related to the recreation of the employee's family, but the recreation expenses must be paid from the employee's account or from the spouse's account (if the joint ownership of the spouses has not been canceled).

Providing a recreation allowance is possible in the following two ways:

  1. by providing a recreation voucher - the employer hands over the voucher to the employee
  2. by reimbursing accounting documents - the employee submits no later than 30 days from the end of the recreation

If the employee meets the conditions for providing the allowance for recreation, the employer will pay the allowance to the employee on the next pay date (unless otherwise agreed).

An employee of the same employer can apply for the allowance repeatedly during the calendar year, until the maximum amount of the allowance is used up.

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