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| Labor taxation in Slovakia will change significantly from next year |
| Bratislava, 28.11.2025 |
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| Starting next year, labor taxation in Slovakia will change significantly. The marginal effective rate, i.e. the share of additional taxes and contributions from each additional euro generated by labor, will increase for everyone and significantly more for people with higher incomes. Such an employee will now only receive approximately 41 cents from 1 euro of higher labor costs. This was pointed out by the Council for Budgetary Responsibility (CBR).
From January 2026, the non-taxable part of the tax base will be reduced faster, the threshold for the second income tax rate will be reduced, and two new rates of 30% and 35% will be added for gross monthly incomes above 5,875 euros and 7,302 euros.
According to the CBR, the marginal tax rate is key to motivating people to work. In Slovakia, it is currently just below 50% for incomes from approximately 580 euros and reaches around 52% for incomes above 2,540 euros. Starting next year, additional labor costs will be charged at about 56% for gross wages of EUR 5,875 and almost 59% for incomes above EUR 7,302. "Such high rates may reduce the motivation to create and fill highly qualified jobs or increase wages," the council warned.
It recalled that in the current globalized world, Slovakia competes mainly for two factors - investments and global talents. According to the RRZ, the growing international mobility of the workforce, especially of highly qualified workers, increases the disadvantages of high border taxation and presents new challenges for tax systems around the world. Many countries, especially those with a higher labor burden, therefore provide targeted, although usually time-limited, tax breaks for highly qualified workers.
"The problem of talent drain is even greater in Slovakia, as the country is already losing talent through higher education abroad. From the perspective of future growth, it is more efficient to tax property than income from work. The new higher rates will not affect the richest households with passive income from capital or property, but rather highly qualified employees," the RRZ assessed.
With such a high marginal rate, according to the council, the risk of reducing future public revenues through the outflow of qualified employees to legal forms with lower taxation naturally increases. This may include formal entrepreneurship as a self-employed person (SZÈO), a small limited liability company, or the payment of dividends.odkaz na stránku |
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Address : Euro-Brew Ltd., Hlboká 22, 917 01 Trnava, Slovakia
Tel. : +421 33 53 418 53, Fax : +421 33 53 418 52, E-mail : info@eurobrew.sk |
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