Summary

Slovenia operates a comprehensive social security system which provides a range of old age, invalidity, unemployment and other social benefits, including family allowances and income guarantees. While health services are generally covered, some elements require co-payments. Entitlement to benefits generally derives from and individual’s contribution history, although some benefits arise due to residence in Slovenia.

Details

Contributions

Social Security is payable on total employee compensation and, for employer contributions, is not subject to an income cap. The employer contribution rate is between 16.1%. Employee contributions are paid at a rate of 22.1%. There is no earnings cap on either employee or employer contributions (although a contribution ceiling of 350% of the average annual salary applies to self-employed individuals). In addition, individuals also pay compulsory health contributions of €35 per month.

Treaties

Slovenia has social security agreements with all European Economic Area countries and 9 non-EEA countries, including the US, Canada, Australia, Korea and all the countries of the former Yugoslavia except Kosovo. These agreements generally determine which country has the right the levy social security contributions, has the obligation to provide benefits, and prevent social security being levied twice on the same income. Most inbounds expatriates to Slovenia therefore continue to pay home country social security contributions.

There is no UK agreement but moves between the two countries are in general covered by the UK/EU Trade and Cooperation agreement, although this limits home country coverage to two years, without the possibility of extension. Special rules apply to individuals working in Slovenia and other EEA countries (plus the UK) on a regular basis.

Exemptions

There are few exemptions available in Slovenia. Salary and all other employment-related remuneration, including bonuses and the reimbursement of work-related expenses, paid in cash, vouchers or in kind are subject to social security.

Administration

Social security contributions in Slovenia are paid as a withholding tax by the employer using the gross salary as the basis. Employers are responsible for most social security registration and calculation requirements.

Benefits

Social security contributions create an entitlement to the full range of state benefits. Entitlement to an old age pension is at 60 years of age (with 40 years of pensionable service) or at 65 with a 15 year insurance period.

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