Annual leave in Slovenia: are your employees entitled to compensation?

Annual leave in Slovenia

The right to annual leave compensation connects to the right to annual leave. The employer in Slovenia has to pay the employee who has the right to annual leave a compensation of at least the minimum wage. Namely, the annual leave compensation represents a monetary assessment intended for the employee to spend on their vacation. The Labor Inspectorate of the Republic of Slovenia points out that violations for payment of work have been the most frequent violations in the field of employment for several years in a row. Below we explain by when you have to pay compensation, who has the right to compensation and in what amount.

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Right for compensation for annual leave and the amount – does everyone receive the same amount?

The Employment Relationships Act (ZDR-1) determines to whom the right to compensation for annual leave belongs. The employer has to pay the employee who has the right to annual leave a compensation at least in the amount of the minimum wage.

Workers who are employed throughout the year, regardless of whether they are actually working or are justifiably absent from work, are entitled to holiday pay for the whole year. If an employee is employed for a shorter period of one year in an individual calendar year, he has to receive a proportional part of the compensation.

What about workers who have a part-time employment contract? ZDR-1 stipulates that their right to compensation is proportional to the time for which they are employed. However, this does not apply to part-time workers in accordance with the regulations on pension and disability insurance, the regulations on health insurance or the regulations on parental leave.

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Entitlement to compensation for annual leave and payment – until when?

You have to pay the compensation for annual leave to the employee no later than 1 July of the current calendar year. Exceptionally, you can pay the compensation until 1 November, if a collective agreement for the business activity determines it. In the latter case, the condition is the illiquidity of the employer. The law does not specifically set a deadline for the payment of holiday pay for cases where the employee is employed in the second half of the year, ie after 1 July in the calendar year. However, it follows from the case law that the deadline for the payment of compensation in such cases is 31 December in the current calendar year.

The payment of compensation for annual leave up to the amount of 100% of the last known average monthly salary of employees in the Republic of Slovenia (currently the average gross salary in Slovenia amounts to EUR 1,799.66) relieves personal income tax and social security contributions.

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