Social Insurance Act – changes in the assessment bases

Starting from 1 January 2025, social insurance payers will face a more significant change. The maximum assessment base (MAB), on which social insurance is paid, will not increase gradually, as was the case in the past. The MAB is based on the average monthly wage in Slovakia two years ago and until now it was equal to 7 times the average monthly wage in Slovakia. The increase has thus been gradual, rising most recently from EUR 8,477 in 2023 to EUR 9,128 in 2024. One of the measures of the consolidation package, however, includes a change in the calculation of the maximum assessment base from 7 times to 11 times the average wage of two years ago. This will lead to a radical jump, after which employees and employers will pay social insurance, from 1 January 2025, on a maximum monthly amount of EUR 15,730.

Social insurance covers so-called contributions, which are: sickness insurance, pension insurance (old-age insurance, disability insurance), unemployment insurance, guarantee insurance and the solidarity reserve fund. On the employer’s side it is 27% and on the employee’s side it is 9.4% of the assessment base.

This means that for each employee whose income from dependent activities from 1 January 2025 exceeds EUR 9,128 (the sum of salary, bonuses, various compensations, as well as non-monetary benefits), the employer will pay levies on the amount higher than in 2024 by EUR 6,602. However, when we look at current salaries in the economy, most employees will not be affected by this substantial increase. In practice, it is most likely to affect mainly senior employees, the one-off bonuses granted, but also, for example, situations where a severance payment is made when an employee leaves.