Slovakia: Contribution to the holiday of employees
With the amendment to the law on the promotion of tourism and the indirect change in the Labour Code, a new institution - a contribution to the holiday of employees (“holiday contribution”) – was introduced into the Slovakian legal system effective on 01/01/2019.
Conditions for the payment of holiday contribution
Employers who employ more than 49 employees are obliged to grant their employees a holiday contribution. Other employers can pay a voluntary holiday contribution.
The employee is entitled to a holiday contribution every year as long as the employment relationship with the employer has existed for at least 24 months. The fulfilment of this requirement is reviewed by the employee at the start of the holiday.
The amount of the holiday contribution is 55% of the documented reimbursable holiday expenses, but no more than EUR 275.00 annually.
In particular, an employee’s expenses for a “holiday package” or tourist services are eligible for funding that are associated with at least two night’s accommodation or with meals and other holiday services in the Slovak Republic, as well as multi-day activities in the Slovak Republic during school holidays for the employee’s school children, insofar as the employee pays the costs for himself/herself, his/her spouse participating in the holiday, child or another closely related person.
The employee pays his/her holiday from his/her own funds. The booking documents are then submitted to the employer, at the latest 30 days after the end of holiday, and up to 55% of the costs, but not more than EUR 275.00 annually, are reimbursed by the employer.
The employer can grant the employee the holiday contribution in the form of a holiday voucher, and in accordance with the same principle as the meal vouchers.
The holiday contribution granted by the employer is not taxable as income and is not subject to any taxes for health and social insurance. The obligatory holiday contributions are tax-recognised expenditures of the employer.
Author: Gabriela Janíková