With the shift to remote working, companies across the globe are increasingly seeking top-tier, remote talent beyond the corporate HQ. If you’re looking to expand into Europe, Slovenia makes a great choice, thank to its excellent infrastructure, stable economy and Central European time zone which makes remote global work seamless for Slovenia-based employees looking to integrate into the day-to-day business operations of co-workers spanning the United Kingdom and many European and African countries.
When it comes to hiring Slovenian talent, salaries aren’t the only monetary consideration to factor into your budget. It is important to consider the costs of setting up an employment package which can include things like taxes, social security contributions, overtime and vacation pay, stipends, and benefits.
Let’s analyze the costs of hiring an employee in Slovenia. This includes mandatory and optional expenses, helping you expand your global reach without increasing hiring costs.
Costs to Consider When Hiring Around the World
The basic hiring costs in Slovenia include:
- Employee’s gross salary
- Taxes and benefits
- Vacation pay and other leaves
- Overtime pay
- Severance pay
Plus, you may want to add certain optional costs like benefits, bonuses, and extras.
Mandatory Costs of Hiring in Slovenia
Mandatory hiring costs are non-negotiable expenses when hiring remote, Slovenian talent. Proper accounting of salaries, taxes, overtime pay, and vacation pay is essential. Otherwise, you may risk non-compliance with local labor laws and regulations.
Salary
Slovenia is home to a highly educated workforce, thanks to its close proximity to many top-tier universities across Europe coupled with free tuition. . What’s more, Slovenia boasts a highly connected workforce known to be extremely skilled, innovative and flexible with a Forbes Best Countries for Business ranking of 31 out of 161.
The minimum wage in Slovenia is $1203.36 EUR or $1286.22 USD though salaries will vary greatly among industries and job types. To offer a competitive salary, employers must consider the type of job they are offering and the skillset required for success.
Taxes and Benefits
Employers in Slovenia pay 16% in payroll taxes on top of an employee's gross salary. This money is put towards:
- Pension & Invalidity Insurance: 8.85%
- Health Insurance: 6.56%
- Occupational Injury Contribution: 0.53%
- Parental Protection Contribution: 0.10%
Paid Leave
There are several types of paid leave entitlements in Slovenia.
- Public holidays: There are around 18 holidays, ranging from state and work-free days.
- Paid time off: Full-time employees are entitled to up to 20 days of annual leave.
- Sick leave: Slovenian employees can take up to 30 days of sick leave.
- Parental leave: New mothers are entitled to 90 days of maternity leave. New fathers receive 30 days.
Overtime Pay
Working hours are typically 40 hours per day, 8 hours per week. Monday through Friday is the standard work week.
Overtime pay is not required. Overtime is defined as hours worked outside of normal working hours. Overtime pay should be agreed upon by both parties.
Severance Pay
The Companies Act governs the amount of severance pay and is determined by type of termination. As a result, early terminations for specific reasons will be entitled to severance pay.
If severance pay is required, the amount will vary depending on the circumstances, including the length of the employment. Wages in the following ranges can be used as a guide:
If the employee has been with the company for up to ten years, the severance pay will be half the average monthly gross salary for the previous three months for each year of service.
If the employee has worked for up to 20 years, the severance pay will be 1/4 of the average monthly gross salary for the previous three months for each year of service.
If the employee has been with the company for more than 20 years, severance will be equal to one-third of the employee's average monthly gross salary for the previous three months for each year of service.
Supplemental Costs of Hiring in Slovenia
When the world is your competition, it pays to incentivize new and existing hires with attractive supplementary benefits like medical, dental, vision, life insurance, retirement savings plans, and other stipends and perks.
When you offer attractive supplementary benefits, you are boosting morale and increasing retention which in turn lowers onboarding costs and helps you establish a strong, remote team you can rely on.
Typical benefits may include private health, life and business travel insurance or other perks like subsidized gym memberships.
Bonuses and Extras: There are no mandatory bonuses in Slovenia but many employers offer performance bonuses.
Average Cost of Hiring
Below is an estimated cost of hiring one employee in Slovenia based on a salary of $100,000. This salary is designed to make it easier to calculate average costs and doesn’t represent actual average salaries in the country. The actual salary will vary depending on your hiring goals.
Average Cost Of Hiring One Employee in Slovenia (Annual in USD):
Salary: $100,000
Employer Taxes:
- Pension & Invalidity Insurance: 8.85%
- Health Insurance: 6.56%
- Occupational Injury Contribution: 0.53%
- Parental Protection Contribution: 0.10%
Total: $116,000
Work with Borderless
Growing your remote, global team and hiring Slovenian talent can seem overwhelming, especially when you consider all the associated costs. Leave the headache to Borderless. An Employer of Record (EOR) like Borderless will handle all the administrative work, ensuring compliance and giving you cost-savings, so you can focus on growing your business.
To get started, book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
