New Year 2020 brings again a number of legislative changes. It is often difficult to navigate quickly and therefore we bring to your attention the most important legislative changes in the field of labor, which come into effect from 1^st January 2020.

Wage variables

Monthly minimum wage                                                                          580, 00 EUR

Hourly minimum wage                                                                             3,333 EUR

In the area of minimum wage demands, it is also necessary to respect the degree of labor intensity

Monthly non-taxable portion of the tax base of                                367.85 EUR

Monthly tax bonus for children over 6 y.                                             22, 72 EUR

Monthly tax bonus for children under 6 y.                                           45, 44 EUR

Life minimum                                                                                              210, 20 EUR

Jobseeker's income limit                                                                          210, 20 EUR

Payments to insurance companies and maximum assessment bases

Unlimited health insurance                                                                     no limit

Social insurance                                                                                         7 091, 00 EUR

Retirement and monthly correction reports

The amendment to the Social Insurance Act brings the following change. If an employee has been awarded a retirement pension, the employer is obliged to correct monthly statements of insurance and contributions from 1^st January 2020 from the date of the decision on the granting of the pension and not from the date of his award as it was until 31.12.2019. The occurrence of overpayment shall also be assessed at the earliest from the date of the decision. The date of the award of the pension is therefore the date of the decision on the award of the pension.

Dividends and maximum assessment base

For dividends paid in 2020, a maximum assessment base of EUR 60 780, 00 will apply. The levy applies only to health insured persons in the Slovak Republic.

Signing of declarations to apply the basic non-taxable portion of the tax base

From 1^st January 2020, the employee's annual obligation to sign the declaration by the end of January shall be abolished. At the same time, the employee may, by mutual written agreement with the employer, also deliver the declaration electronically (by e-mail). This measure will significantly reduce the employer's administrative burden.

Adjusting the holiday area

The National Council of the Slovak Republic approved an amendment to the Labor Code, which provides for a change in the period of leave of at least 5 weeks (25 days). An employee who:

- at least 33 years by the end of the calendar year,

- permanently takes care of the child.

However, this novelty creates space for discussion and questions in the application practice, which the mentioned amendment does not reflect: what is permanent care for a child, as the Labor Code defines this term, and also how to proceed in the case of alternating care.

  At VGD, we will be happy to help you with any problem (not only) on this issue. For more information, please click on our website, Facebook or Linked-In.