The idea of the 13th salary misses goal for now

A minimum of companies paid the extra holiday salary, claims consultancy firm

(Source: TASR)

Only a minimum of companies used the opportunity to reward their employees with a 13th holiday salary, to be part of their June salary this year. The audit and tax consultant Grant Thornton Slovakia came to the conclusion based on its analysis.

“Of all our clients operating in both the manufacturing and non-manufacturing sectors, less than 5 percent were able to take advantage of this opportunity,” said the tax partner of Grant Thornton, Silvia Hallová. “I estimate that less than 3 percent of companies in Slovakia provided holiday pay as the 13th salary under the new system.”

The bad setting of conditions is the main reason why the idea of 13th and 14th salaries do not work. These are benefits employees receive before the summer and Christmas holidays. Holiday and Christmas bonuses are exempt from the payment of health insurance levies only for now. This means that an employer may save only up to €16.20 when paying a €500 holiday salary.

Read also:Workers will earn more for night shifts, weekends and holidays

Holiday and Christmas bonuses will be exempt from income tax only as of 2019 and from social insurance levels as of 2021.

“The introduction of the so-called entitlement to the 13th and 14th salary, therefore, proved to be a purely propagandistic step,” said Hallová.

Wilfried Serles, managing partner at Grant Thornton Slovakia, points out that the burden of taxes and social insurance contributions in Slovakia is higher than in Austria, i.e. a country considered to be one with high taxes.

“If the government really wants to increase the income of people, it has to reduce the burden of taxes and social insurance contributions,” said Serles, managing partner at Grant Thornton Slovakia. “Any other measure is only a show without a final effect.”

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

Six people involved in the surveillance of journalists, Kočner paid thousands

People who followed journalists for Kočner are trying to rid themselves of guilt.

Peter Tóth

Trump will meet Pellegrini at the White House

The two politicians will discuss defence and economic cooperation this May.

The White House

After historical sights in Slovakia have burned, is there better fire protection?

Kunerad Castle in the Žilina Region has burned down twice in eight years, and Krásna Hôrka is still undergoing construction seven years after burning.

Krásna Hôrka Castle caught fire in March 2012.

Taxpayers still pay for former PM Fico's bodyguards

The Interior Ministry refuses to say why or reveal how much Fico's security costs.

Smer head Robert Fico.