How salary is calculated is something both employees and employers must be familar with. First of all we would like to explain, what is net salary and what is basic gross salary? Furthermore, we would like to let you know how much contributions you need to pay by employers and employees? And last but not least, what is final cost for employer?
What do you include in net salary?
In accordance with the slovenian Employment Act (ZDR-1), salaries consist of basic salary, part of salary for work performance and supplements. Hence, if you are planning to move to Slovenia, you would find more about income taxation in article about non-resident taxpayer.
The employer can not arbitrarily lower salary of worker
Employer and employee determine the amount of salary amount for a worker in employment contract. Both parties should sign the contract (employer and worker). Of course, when determining the amount, you should take into account the statutory minimum or minimum salary. This in 2018 amounts to EUR 638 net, or exactly EUR 842.79 gross.
What is the difference between minimum, basic and base salary?
Basic gross salary is basic salary defined with employment contract.
Net salary is amount that worker receives to their bank account without taking into account work-related reimbursement of costs (meal, transport). You get the amount of net salary, if you deduct social contributions from gross salary defined with employment contract (22.10%). An employee should pay this part of social contributions and advance payment of personal of personal income tax.
Gross gross salary represents total cost for employer. It includes basic gross salary with all supplements and social contributions of the employer (16,10%) and the reimbursement of work related expenses (transport, meals, allowances, etc.).
>> Would you like to calculate different salary amounts? We prepared Salary calculator for you!
Calculation of net salary example
We prepared calculation of net salary example in order for you to better understand gross and net salary. Furthermore, we selected three basic gross salaries, namely the minimum salary (842.79 euros), 1.600 euros and the average salary in Slovenia in December 2017 (1.723,13 euros). In calculating the basis for income tax, we considered the lowest general relief, which is 275.22 euros.
In the first case, that is with the minimum salary, but we used a higher amount for the calculation of contributions! The minimum basis for calculating contributions for salaries from March 2018 is 878.55 euros.
You can find the net salary calculation for the three above-mentioned gross amounts in the table below.
| Degree | EXAMPLE 1 | EXAMPLE 2 | EXAMPLE 3 | |
|---|---|---|---|---|
| GROSS SALARY (in euros) | 842,79 | 1.600,00 | 1.723,13 | |
| Basis for the calculation of taxes and contributions | 878,55 | 1.600,00 | 1.723,13 | |
| Contributions for pension and disability insurance | 15,50% | 136,18 | 248,00 | 267,09 |
| Healthcare contributions | 6,36% | 55,88 | 101,76 | 109,59 |
| Employment contributions | 0,14% | 1,23 | 2,24 | 2,41 |
| Contributions for parental care | 0,10% | 0,88 | 1,60 | 1,72 |
| Social contributions from gross salary | 22,10% | 194,16 | 353,60 | 380,81 |
| General relief | 543,32 | 275,22 | 275,22 | |
| Base for income tax | 105,31 | 971,18 | 1.067,10 | |
| Advance on income tax | 16,85 | 188,69 | 214,59 | |
| NET SALARY | 631,78 | 1.057,71 | 1.127,73 | |
| Contributions of employer for pension and disability insurance | 8,85% | 77,75 | 141,60 | 152,50 |
| Contributions of employer for healthcare | 6,56% | 57,63 | 104,96 | 113,04 |
| Contributions of employer for employment | 0,06% | 0,53 | 0,96 | 1,03 |
| Contribution of employer for injuries | 0,53% | 4,66 | 8,48 | 9,13 |
| Contribution of employer to parental care | 0,10% | 0,88 | 1,60 | 1,72 |
| Total contributions of employer to the salary | 16,10% | 141,45 | 257,60 | 277,42 |
| GROSS GROSS SALARY – total cost for employer (without reimbursement of labour costs) | 984,24 | 1.857,60 | 2.000,55 |
>> You can check different salary amounts with our salary calculator!
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