Compensation for annual leave – bonus or obligation?

Compensation for annual leave – bonus or obligation?

When doing business in Slovenia, you will most likely also have employees within the company. In addition to their monthly salary, you will also have to pay them compensation for annual leave. This payment is not a bonus for the employee but actual a legislative obligation of the employer. What is compensation for annual leave and how much does the payout have to amount to?

Data d.o.o. is the leading provider in company registration support in Slovenia to entrepreneurs who start their business in Europe.  We also provide accounting services and tax consultation. Additionally, our legal team can guide you to understand which obligation you have as an employer in addition to payout of compensation for annual leave.

What is the amount of the compensation for annual leave you need to pay your employee?

The compensation for annual leave is a right that each employee with annual leave has. It cannot be lower than the amount of minimum wage. The 131st article on the Labor Relations act determines this element. Every employer has to pay compensation for annual leave to every employer who has the right to annual leave. You need to pay this amount every year no later than on 30th June. Our legal team can consult you on your specific case individually in the scope of legal consultation.

How is the right to compensation determined?

The employee has to receive a specific amount of the compensation for every full month of employment with the company. In addition, the employee also has the right to use yearly annual leave, which cannot be shorter than 4 weeks. This is the case both for full-time and part time employees.

Exceptions to the obligation

If the employee is not employed for the full calendar year, there are exceptions for payout of the compensation. Because of this, the employee is entitled to the compensation in the same part as to annual leave – from the moment of starting the employment. More specific, it means that the employee has to receive 1/12 of annual leave for reach month of employment. The employee has to receive the same amount for compensation for annual leave. If you are not sure of the amount of compensation you would need to pay, you can always turn to our legal department.

Exceptions are also in the public sector, as the employees receive the amount of compensation in accordance with their pay grade. Retired persons are have to receive compensation. The Insurance Office of Slovenia makes the payouts for compensation to retired persons.

The payout of the compensation has to occur in monetary payment, unless otherwise determined with a collective agreement.

Do not hesitate to contact us regarding legal consultation or assistance with company registration in Slovenia. For more information on company registration in Slovenia, EU, you can write to our email You can also contact us over the phone 00386 1 6006 270 or 00386 40 530 718 (Viber, WhatsApp). You can also follow us on Facebook.

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *