New Consolidation Package

On 24 September 2025, the Slovak Parliament approved a law amending several laws related to the consolidation of public finances. Its aim of is to increase state budget revenues in connection with the consolidation of public finances. It amends several laws, including the Labour Code, the Social Insurance Act, the Income Tax Act, the Value Added Tax Act and others.

Here is a brief overview of the key changes brought about by the approved draft.

A summary of selected key changes can be found here:

Labour Code

  • The definition of “dependent work” no longer includes the defining characteristic “during working hours determined by the employer”. This change was adopted to reduce circumvention of the Labour Code and will take effect on 1 January 2026.
  • The list of public holidays and days off work during which retail sales are prohibited is significantly shortened, with the following days being removed: 6 January, Easter Monday, 1 May, 8 May, 5 July, 29 August, 15 September, 1 November, and 17 November – effective 1 November 2025.
  • The ban on retail sales remains only on the following days: 1 January, Good Friday, Easter Sunday, 24 December after 12:00 p.m., 25 December and 26 December.

Public Holidays and Days Off Work

  • 17 November (Day of the Fight for Freedom and Democracy) will not be considered a non-working day – effective 1 November 2025.
  • In 2026, 15 September (Our Lady of Sorrows) and 8 May (Victory over Fascism Day) will not be considered non-working days.

Unemployment Benefit Amount

  • Until now, a uniform benefit amount of 50% of the daily assessment base has applied throughout the entire support period for the provision of unemployment benefit.
  • From 1 January 2026, there will be a gradual reduction in the benefit over a period of 6 months:

1st – 3rd month → 50%,

4th month → 40%,

5th month → 30%,

6th month → 20%.

Mandatory Contributions for Self-employed Persons from the 6th Month of Doing Business

  • Effective 1 January 2026, a new rule will be introduced whereby the obligation of self-employed persons to pay social insurance will arise automatically from the first day of the sixth calendar month after the business license is issued.
  • Until now, compulsory insurance was assessed only after the first tax return was filed, i.e., usually after the first year of doing business.

Increase in the Minimum Social Insurance Payments for Self-employed Persons

  • Effective 1 January 2026, the minimum assessment base from which the minimum social insurance payment is calculated for self-employed persons will increase from 50% to 60% of the average wage from two years ago.
  • The measure will affect most self-employed persons.
  • The change will also affect persons with voluntary insurance who pay insurance premiums based on the minimum assessment base.

Sickness Benefit and Income Compensation

  • Until now:
  • Entitlement to sickness benefits from social insurance arose from the 11th day of sick leave.
  • the employer paid income compensation during the first 10 days of sick leave.
  • From 1 January 2026:
  • entitlement to sickness benefits from social insurance will arise only from the 15th day of sick leave,
  • the employer will provide income compensation during the first 14 days of sick leave,
  • from the 15th day, sickness benefits will be paid by the Social Insurance Agency.

Public Health Insurance

  • From 1 January 2026, employees, self-employed persons and so-called self-payers will see their public health insurance contributions increased by 1 percentage point.
  • For persons with disabilities, the contribution will increase by 5 percentage points.

Income Tax Act

  • Minimum tax for legal entities:

Effective 1 January 2026, a new fifth taxable income threshold will be introduced into the Income Tax Act, which will affect the minimum tax for legal entities. If the new taxable income (revenues) of a legal entity exceeds EUR 5,000,000, it will be required to pay a minimum tax of EUR 11,520.

  • Adjustment of tax rates for natural persons:

Effective 1 January 2026, progressive taxation of individuals will be expanded. New tax brackets with higher tax rates for higher income groups will be added.

Until now, the tax system had two tax brackets:

  • 19% of the portion of the tax base that did not exceed 176.8 times the minimum subsistence level,
  • 25% of the portion of the tax base that exceeded 176.8 times the minimum subsistence level.

The new law introduces four tax brackets:

  • 19% – on the portion of the tax base up to8 times the minimum subsistence level (i.e., up to EUR 43,983.32 per year),
  • 25% – on the portion exceeding 154.8 times and not exceeding4 times (i.e., from EUR 43,983.33 to EUR 60,349.21 per year),
  • 30% – on the portion exceeding 212.4 times and not exceeding 264 times (i.e. from EUR 60,349.22 to EUR 75,010.32 per year),
  • 35% – on the portion exceeding 264 times the minimum subsistence level (i.e. above EUR 75,010.32 per year).

Labor Inspection Act

  • The proposal introduces an increase in fines for illegal employment and the introduction of an incentive mechanism for timely payment of fines.

New regulation from 1 January 2026:

  • the lower limit of the fine for illegal employment will be increased from EUR 2,000 to EUR 4,000,
  • in the case of illegal employment of two or more persons at the same time, the minimum fine will increase from EUR 5,000 to EUR 8,000.

Discount for prompt payment of fines

  • If the employer pays two-thirds of the imposed fine within 15 days of the decision on the fine becoming final, the fine will be considered to have been paid in full.

Act on Special Levy on Business in Regulated Sectors

  • The proposal extends the scope of entities subject to the special levy to include:
  • Pension management companies,
  • Supplementary pension savings companies,
  • Collective investment management companies (authorized by the NBS or EU/EEA).

The levy rate for these entities will be 0.0125.

The first levy under the new rate will apply to the accounting period beginning after 31 December 2025.

Insurance Act

  • The proposal, effective from 1 January 2026, adjusts the amount of the levy paid from the mandatory contractual insurance for vehicles:
  • The rate of the levy portion increases from 8% to 10%.
  • This applies to all insurance companies operating in the Slovak Republic (including foreign branches).
  • The levy is paid for the previous year, no later than the end of February.

VAT Act – flat-rate deduction for motor vehicles

  • Effective 1 January 2026, the flat-rate VAT deduction will be adjusted to 50%. VAT payers will be able to claim a 50% tax deduction for passenger motor vehicles that are not used exclusively for business purposes.
  • The new rule eliminates the need to keep detailed records of the use of the vehicle for business purposes.

VAT Act – foods with high sugar and salt content

  • Selected foods with high sugar and salt content, including sweets, confectionery, cakes, ice cream, jams, and salty snacks, will be taxed at the basic VAT rate of 23% from 1 January 2026 (previously 19%).
  • Exceptions: Dietetic foods (including mineral waters and non-alcoholic beverages without sugar) and milk, plant-based or yogurt beverages without coffee or tea will retain the reduced rate of 19%.