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How Much Does It Cost to Hire an Employee in Slovenia?

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Consider these costs when hiring talent from Slovenia.

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 for a great choice. 

Slovenia has an excellent infrastructure and stable economy. It is also located in the Central European time zone, which makes remote global work seamless for Slovenia-based employees. They can easily integrate with the day-to-day 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. These 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. 

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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. 

  • 8.85%: Pension & Invalidity Insurance
  • 6.56%: Health Insurance
  • 0.53%: Occupational Injury Contribution
  • 0.10%: Parental Protection Contribution

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.In the case of further absence from work, the benefit will be covered by the compulsory health insurance system.
  • Parental leave: New mothers are entitled to 105 days of maternity leave. New fathers receive 30 days. 

Overtime Pay

Working hours are typically eight hours per day, 40 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 require 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 a quarter 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)
MANDATORY COSTS
Salary $100,000
Employer Taxes:

  • Pension & Invalidity Insurance: 8.85%
  • Health Insurance: 6.56%
  • Occupational Injury Contribution: 0.53%
  • Parental Protection Contribution: 0.10%
 $16,000
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.

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