Employee Benefits and Compensation in Slovenia

What are Employee Benefits? 

Compensation offered to employees in addition to their regular salary is known as employee benefits. These are a company’s lucrative aspects that help recruit and retain top employees, boost their morale, and improve employee satisfaction.

Some standard employee perks include health insurance, retirement plans, vacation time, flexible work schedules, and paid time off. Employees may also receive extra employer benefits, such as private insurance, food vouchers, etc.

These employee perks may contribute to developing a supportive workplace where employees feel valued and appreciated. Furthermore, providing these incentives aids firms in maintaining a solid reputation for their work culture.

Slovenia Compensation Laws

Some laws regarding the compensation package in Slovenia include the following-

Article 137 (Wage Compensation)

When an employee cannot work owing to an illness or accident unrelated to their line of work, their employer must provide wage compensation.

Article 191 (Parental Leave)

The employer must guarantee an employee’s right to quit work early or work part-time to take advantage of legal parental leave benefits in Slovenia.

Article 189 (Prohibition of Carrying Out Works During Pregnancy and Breastfeeding Period) 

A female employee is provided with some maternity benefits in Slovenia. They are relieved from their duties that might endanger their health or their unborn child. This prohibition is put into effect during the pregnancy and breastfeeding periods. The employer must also ensure that the mother has a substitute role and is paid an amount comparable to her prior engagement.

Article 128 (Amount of Extra Payments) 

The compensation package in Slovenia states that the employee is entitled to additional compensation for any distinctive working circumstances, including the allocation of working hours for:

• Night work,
• Working on Sundays
• National holidays 
• Free days
• Overtime

Article 134 of the Employment Act

The government determines the compensation package in Slovenia, which states the minimum payment each year by the Minimum Wage Act. 

How to Design Your Employee Benefits Program? 

Here are some steps you may take to get started with the program of employee benefits in Slovenia:

Choose your goals

The first stage is to decide what you want your benefits program to accomplish. It outlines the organization’s goals for providing benefits that consider the demands of both employers and employees and should also comply with the compensation and benefits policy in Slovenia.

Establishing the compensation structure in Slovenia should consider elements including employer size, location, industry, taxes, and agreements for collective bargaining.

The money that may be used to pay for benefits is also crucial, as most firms are limited in what they can afford to provide their employee benefits in Slovenia.

Conduct research

Considering the employees’ requirements, an evaluation process should be conducted to establish the optimum benefits selection and structure. You must study to learn what advantages are typical in your sector and what services your competitors provide. 

To find out what advantages your employees would appreciate, you may ask them in focus groups or through surveys. Simple surveys, in-depth employee interviews, or advanced research methodologies are commonly used in market research.

Consider the demands of different employee groups by analyzing the demographics of the current workforce.

The compensation structure in Slovenia may consider tax rules and regulations, competition benefits policies, and employer perceptions of employee benefit demands.

Create a benefits plan program

The firm can start by prioritizing benefit offers based on their research and budget. The employer will determine the cost of delivering the top-priority benefits and compare it to the allocated budget. Insurance coverage, retirement programs, overtime pay, and tuition assistance are typical perks for employee benefits in Slovenia.

Explain the benefits

After creating your benefits plan, it’s crucial to share the specifics with your staff. With efficient communication planning, the sound effects on staff morale, loyalty, and recruitment are conveyed. Workplace policies, benefit descriptions, or one-on-one sessions with staff members are all effective ways to do this.

Assess and make changes

It’s crucial to constantly assess your benefits plan to ensure it fulfills both employee demands and organizational goals.

Throughout time, adjustments are required depending on input and evolving conditions. The compensation package in Slovenia is affected by dynamics brought about by shifts in the corporate environment, the market, the legal frameworks, and employee dynamics.

Types of Guaranteed Benefits in Slovenia 

In Slovenia, employers are obligated to offer their employees several benefits. Some expected employee benefits available in most countries are-

Maternity/ Paternity leave 

• Pregnant women are granted maternity leave to care for their unborn kids or children while still young. 
• Maternity leave covers 28 days before the due date and amounts to 105 calendar days. 
• Paternity leave is a benefit offered to employees that give new parents time off, either paid or unpaid. 
• The paternity leave encompasses 30 calendar days and an additional 10 or 20 days for the birth of twins or triplets, respectively.
• Parental leave can be used to bond with a new kid, care for a sick child, or manage a pregnancy-related health problem. 

Public holiday

• In 2023, Slovenia will celebrate 13 official public holidays. 
• As the norm, all employees must be provided with leaves on these days. 
• There is, however, no rule of substitution in case a public holiday falls on the weekend.

Sick/Disability benefits

• If the disability or illness of the employee has occurred as a consequence of a task at the workplace, the insured employee is to receive wage compensation for 30 days from the employer. This will be provided as financial aid until the employee returns to work. However, if the employee cannot return to work after 30 days of leave, the insurance system will pay the further absence benefit. 
• For employees who have sustained an injury or sickness outside of the workplace, the same 30-day rule applies. However, the compulsory health insurance scheme covers financial aid if they are not fit to join work after 30 days.
• For disabled employees and any person(s) who can provide proof of nursing a disabled minor, the employer will provide an extra leave of three days.

Pension insurance 

Companies provide employees with pension insurance that employees can use after retirement:

Health insurance

The following medical benefits for employees in Slovenia are provided by law: 

• Payment for medical services, sick pay for brief absences, and compensation for travel costs associated with receiving medical care. 
• Health insurance is also required to pay for dental benefits in Slovenia.

Employee Benefits for Expatriates 

The Employment, Self-employment, and Work of Foreigners Act govern foreign employee compensation and benefits in Slovenia. Expatriates receive additional employee benefits in Slovenia and the same advantages as residents, including:-

Housing support

Some businesses may support expatriates regarding locating accommodation, settling leases, or paying rent.

Assistance with moving may be provided, including support with securing work permits and visas and making travel arrangements.

How are Employee Benefits Taxed in Slovenia?

Employee benefits are subjected to tax under several slabs of the Slovenian government. These are compulsorily enforceable and are usually divided into two sources. They are:-

Contributions made by employees

The entire amount of the employee’s gross earnings or salary, including vacation pay, fringe benefits, and compensation for work-related costs beyond a particular level, is the taxable foundation for social security insurance contributions. The calendar month serves as the assessment period. Employees make the following contributions as a proportion of their pay:

• Pension insurance- 15.50 Rate of contribution (ROC)
• Health insurance- 6.36 ROC
• Unemployment insurance- 0.14 ROC
• Parental leave insurance- 0.10 ROC

Contributions from employers

Employers also contribute social security insurance for their employees’ compensation in Slovenia. Similar to employee contributions, there is a similar taxable basis and assessment period. The following are the employer contribution rates.

• Pension insurance- 8.85 Rate of contribution (ROC)
• Health insurance- 7.09 ROC
• Unemployment insurance- 0.06 ROC
• Parental leave insurance- 0.1 ROC

Restrictions for Slovenia Benefits and Compensation

• Employees are required by law to refrain from any actions that might seriously impair or violate their morals and the employer’s commercial interests during their job relationship.
• Employees must keep the firm’s trade secrets confidential and are not allowed to work for another company while still an employee without explicit permission from the employer (non-compete covenants).
• According to Slovenian legislation, businesses must offer specific perks to their employees and follow the compensation and benefits policy in Slovenia; otherwise, they risk fines and legal repercussions.
• Concerning the same employee and position, the employer is not permitted to enter into one or more subsequent fixed-term employment contracts where the continuous-time would exceed two years.

Supplemental Benefits in Slovenia 

To maintain a competitive wage package or increase employee happiness and retention, businesses may provide their staff extra employee benefits in Slovenia.

Retirement

Voluntary supplemental pension plans can be formed as group policy plans with an employer that finances the insurance for all his employees either fully or partially or by enrolling in an insurance coverage pension scheme.

Personal Accident Protection

In addition to the benefits offered by the social security program, some businesses provide personal accident insurance, which primarily covers accidental death and permanent injury as part of medical benefits for employees in Slovenia. Nonetheless, it is possible to agree to deductions from the employee’s monthly wage and include their family members. Often, the employer bears the expense.

Why Choose Multiplier? 

Multiplier offers a holistic solution to assist businesses that seek to establish employee benefits and compensation packages in their workplaces. With the help of the experts at Multiplier, companies can better understand the labor laws in foreign countries where they want to grow their businesses. This, in turn, helps companies hire talented individuals in foreign countries without needing prior subsidiaries. Multiplier is also happy to support its clients in optimizing the cost of hiring, team-building, market research, and so on.