A group of MPs is proposing to change the rules, which have ignored inflation for years. Working pensioners could improve from 2027 thanks to the automatic increase of the non-taxable part of the income, which today is “concreted” at two hundred euros.
The Slovak labor market is struggling with an acute shortage of people, and politicians are looking for a way to return the most experienced hands to companies. The solution is supposed to be an amendment to the Social Insurance Act, which was submitted to the parliament by four deputies (Darina Luščíková, Simona Petrík, Dávid Dej and Štefan Kišš). Their plan is clear, to leave working seniors and students with more money in their wallets and to motivate them to work legally.
According to the explanatory report, the aim of the proposal is to “increase the disposable income of working students and working pensioners”. The authors of the amendment openly admit that the state is fighting not only with the lack of personnel in gastronomy and trade, but also with “black” work.
The end of the era of two hundred euros
The main change is the reform of the so-called tax deductible item (OOP). If a pensioner works under an agreement today, neither he nor the employer pays pension insurance contributions from the first 200 euros. However, this amount has not changed for a decade, even though shop prices and average wages have shot up sharply.
“However, the amount of the tax deductible item did not take into account the increase in the average wage or inflation, which reached up to 40% between 2015 and 2025,” the authors point out in the material. While in 2015 this relief was almost a quarter of the average salary, today it is only a fraction.
According to the new law, the amount should no longer be determined by a fixed amount in the law, but by an automatic formula. The deductible item should represent 20% of the average salary of two years ago. If the law were to pass, in 2027 the tax-free amount would increase from the current 200 euros to approximately 324 euros.
What would change?
Higher net income. Lower contributions mean that the senior citizen will have more money left over from the agreed gross salary.
Another change would be a lower cost of labor. Since the employer also saves on contributions, the pensioner becomes a more attractive employee for companies.
And thirdly, fair valuation. The relief will no longer be frozen, but will grow with the economy.
Good news for early retirees as well
The amendment also solves the frequent dilemma of early retirees, and that answers the question of working or receiving a pension? The current system is set up strictly – if an early retiree earns more than 2,400 euros per year according to the agreement, Sociálna poisťovňa stops the payment of his pension.
According to the deputies, “such income does not motivate pensioners to continue to work”. The proposal therefore assumes that this limit will also be “unfrozen” and linked to the growth of wages in the national economy. The limit for which it is possible to work without losing the pension should therefore increase every year.
Legal work as security
In addition to the financial benefit, the explanatory report emphasizes safety. The state wants to push out “manual” work, which deprives seniors of the protection guaranteed by the Labor Code. “At the same time, the motivation of employers to employ students and pensioners legally will increase, as the costs per employee will be lower,” the proposal states.
For seniors in regions dominated by services such as hotels and tourism, this change can be crucial. It is these sectors that have an “acute labor shortage” and experienced seniors could fill these holes if it pays off financially.
If the law passes the parliament, the changes should come into effect on January 1, 2027. Although this will mean a shortfall in levies for the state budget, the deputies believe that it will return in the form of higher tax collection and a stronger economy.
