Social insurance in Slovenia: the enrollment is necessary, otherwise the company can receive a fine
When you are doing business in Europe with a company in Slovenia, you will most likely employ workers. You will have to enroll your workers in compulsory social insurance in Slovenia. This happens once you sign the employment contract with the worker. If you end the employment with the worker, you will also have to cancel their social insurance. If you do not do that you may receive a fine.
Compulsory social insurance in Slovenia – how can you do the registration?
The laws stipulate that the company that employs workers also takes care of registration and changes in their workers’ social insurance. Once you sign the employment contract with the worker, you need to enroll him or her into the social insurance. The last day you can do it is on the day the person starts the work. You need to attach the contract to the application. Also, you can do the application through the online portal eVEM. Follow our Facebook and Instagram for more news on how to do business in Slovenia.
Social insurance in Slovenia – sole trader and the shareholders who are also directors
If you are a sole trader you will also have to enroll in social insurance. The same goes if you are a shareholder in a LTD and also director at the same time. The only exception for both is if you are enrolled into social insurance for full time on anoter basis somewhere else. You need to do the application no later than in 8 days from the day that the insurance conditions arise.
If you do not enroll into social insurance in Slovenia, you may receive a fine. It can be a fine from 1.500€ to 2.500€ if your company employs from 10 to 200 workers. If you employ less than 10 workers, you can receive a fine of 1.200€.
Social insurance and undeclared work
If a worker works for your company without a contract, it falls under undeclared work. If you do not enroll your worker into social insurance or cancel the insurance ahead of time it also falls under undeclared work.
Social Security Contributions Act (ZPSV) includes the requirement that the worker has to be enrolled in social insurance before starting the work for a company.
What are the fines?
The inspection office of Slovenia can fine a company that does not enroll workers into social insurance from 2.500€ to 10.000€. The same goes if the company does not report all the status changes of their workers in due time.
Which insurances are mandatory?
The compulsory social insurance consists of four parts. You do the enrollment in uniform forms. You use the M-1 form for the enrollment to social insurance. The M-2 form is used for terminating insurance. And for making the changes to the insurance, you use the M-3 form. You also need to to give a copy of the form to your employee. Otherwise, you can receive a fine between 750€ and 2.000€. If you need support to understand your obligations, contact our legal experts.