More and more Slovenians are choosing to work for foreign employers who are not based in Slovenia, and physical presence in the office is no longer a condition for successful work performance. Among the industries that stand out in this trend are mainly information technology (IT), sales and commercial representation, especially for the South-Eastern European market, and recently the demand for personnel and administrative services has also been increasing. These are professions that enable remote work and are based on digital connectivity, which opens the door to the global labor market.
The spectrum of advantages in this form of employment is very varied. Slovenian workers gain access to a wider range of work opportunities, often also to higher and more competitive salaries compared to the domestic market. Working from home brings greater flexibility, a better balance between professional and private life and the possibility of cooperation in an international environment.
Despite the many advantages, this form of employment also brings challenges, especially in the tax and legal fields.
The key question is how a Slovenian worker and a foreign employer can connect.
The most common forms are direct employment on the basis of an employment contract or cooperation through a sole proprietorship (sp), which can be more complex from a tax point of view.
In the case of direct employment on the basis of an employment contract, the foreign employer in Slovenia is obliged to pay certain taxes and contributions, which are comparable to those applicable to Slovenian employers, with some peculiarities and deviations. One such example is the long-term care contribution, for which the foreign employer is not obliged to pay. This contribution must be paid by the employee himself, in the amount of 2% of the gross salary.
PHOTO: Work of UI
A worker employed by a foreign employer also pays taxes and contributions in Slovenia and is included in the Slovenian social insurance system. At the same time, the foreign employer must comply with Slovenian labor legislation. This includes, in particular, the minimum gross salary, reimbursement of food and transport expenses, holiday pay, winter holiday pay and the minimum number of days of leave as stipulated by the Labor Relations Act (ZDR-1).
The peculiarity is that in many European countries some of these elements are not legally required. Nevertheless, the foreign employer must provide them if he employs a person who lives and works in Slovenia, as the legislation of the country of residence of the employee applies. It is not necessary for the employee to be a Slovenian citizen. It is only important that he has a permanent or temporary residence in the Republic of Slovenia and the status of a Slovenian tax resident.
In the European Union, working for a foreign employer is becoming an increasingly established form of employment, which erases geographical boundaries and brings new opportunities, while at the same time requiring greater legal and tax regulation.
Professional support in the calculation of salaries and social benefits on the international stage
The Slovenian-German Chamber of Commerce has been providing comprehensive payroll and personnel management services for Slovenian workers employed by foreign employers for many years. The services are based on professional knowledge and experience, which ensure that contracts comply with Slovenian legislation, salaries are correctly calculated and paid on time, and that all taxes and contributions are settled in accordance with regulations. Effective multilingual communication enables smooth cooperation with companies throughout Europe.
More at website of AHK Slovenia
Contact person: Rasmira Majetić-Ramić (rasmira.majetic-ramic@ahkslo.si)
Author of the article: Rasmira Majetić-Ramić
The customer of the advertising content is AHK Slovenia
