Slovenia's strategic location in south central Europe, bordered by key countries and the Adriatic Sea, positions it as a crucial gateway linking the Balkans to the broader European market. Its recovery from the financial crisis has led to consistent GDP growth, predominantly driven by the service sector, which accounts for almost 70% of its GDP. With strong trade relationships, particularly with Germany, Italy, and Austria, Slovenia offers a stable economy and a skilled workforce, making it an attractive site for business expansion and investment.

What you need to know before hiring employees in Slovenia

Job market in Slovenia

• Slovenia boasts a commendable 3.2% GDP growth, fueled by increased domestic consumption and thriving exports, particularly in technology and innovation sectors.
• Investments in research and development have catalyzed the expansion of critical sectors, with a significant emphasis on fostering a favorable business environment. This strategic focus is attracting both domestic and international investments.
• The technology sector, highlighted by advancements in software and digital services, stands as a major economic driver, showcasing Slovenia’s capacity for cutting-edge technological development.
• Inflation remains stable at 1.5%, reflecting the effective monetary policies by Slovenia's Central Bank. This stability supports investor confidence and underscores a well-managed economic climate conducive to business operations.
• With its strategic Central European location, robust infrastructure, and skilled workforce, Slovenia is positioned as an appealing locale for foreign direct investment.
• Ongoing investments in renewable energy and eco-friendly technologies underscore Slovenia’s dedication to environmental sustainability, aligning economic growth with ecological responsibility.

Slovenia Hiring Trends

• Post-COVID-19, Slovenia's economy has rebounded strongly with a 3.2% GDP growth in 2024, driven by significant advances in technology, innovation, and export-oriented industries.
• Central Slovenia, especially around the capital, Ljubljana, remains the economic powerhouse, attracting a third of all Slovenian companies and offering the highest salaries. This contrasts with Eastern Slovenia, which is less developed but offers opportunities in agriculture and industry.
• The services sector, particularly public administration, education, healthcare, and hospitality, dominates employment. However, manufacturing, especially in pharmaceuticals and automotive industries, remains vital in regions like South-East Slovenia.
• Gorenjska and Central Slovenia boast some of the highest employment rates and lowest unemployment levels, reflecting their economic vitality and development.
• Due to local talent shortages in construction, hospitality, IT, and healthcare sectors, there is a growing trend towards hiring foreign workers to meet labor demands.
• Despite global uncertainties, employment in Slovenia continues to grow, with sectors like construction and IT seeing the highest increases in workforce numbers.

How to hire employees from Slovenia

1. Set up an entity in the country

Setting up a legal entity in Slovenia is essential for businesses aiming for stable expansion and direct workforce management. Choose from structures such as a Limited Liability Company (LLC) or a Public Limited Company (PLC), and register with the Slovenian Business Register. Obtaining a VAT number for tax purposes is crucial. Navigating this process requires understanding Slovenian corporate laws, highlighting the importance of thorough planning or specialized assistance.

2. Hire independent contractors

Hiring independent contractors in Slovenia involves drafting formal agreements for specific tasks or projects, providing flexibility ideal for short-term or specialized needs. Accurate classification of these workers is critical to prevent legal issues and potential fines. This model offers considerable operational flexibility, yet it is important to consider that contractors may not exhibit the same level of commitment or loyalty as full-time, permanent employees, a significant factor when relying on this type of workforce.

3. Partner with an EOR in the country

Partnering with an Employer of Record (EOR) in Slovenia simplifies market entry by bypassing the complexities of establishing a legal entity. This approach reduces liabilities and improves cost efficiency. An EOR ensures compliance with Slovenian labor laws, taxation, and regulatory standards, significantly minimizing legal risks and streamlining business operations. This strategy is particularly effective for maintaining compliance and operational efficiency, making it an invaluable option for companies aiming to quickly and effectively establish a presence in Slovenia.

Employment Laws You Must Know Before Hiring in Slovenia

Compliance risk while hiring in Slovenia 

When hiring in Slovenia, compliance risks include misclassification of employees as contractors, non-adherence to labor laws, and improper tax filings. Ensuring proper employment contracts and following Slovenian employment regulations are essential to avoid penalties, legal issues, and potential damage to your business reputation. 

Key Aspects of Solvenian Labor Law:

Employment Contract: In the UAE, employment contracts are primarily classified into two types, as stipulated by UAE Labor Law (No.8 of 1980): 

• Limited Contracts are fixed-term, generally used for specific projects with a clear endpoint, typically not exceeding three years. These are ideal for assignments requiring distinct start and end dates, providing clarity and predictability for all parties involved.
• Unlimited Contracts, on the other hand, do not have a predetermined duration and are suitable for long-term employment relationships, offering flexibility for ongoing roles without fixed completion times.

Additionally, the UAE accommodates various work arrangements like part-time, temporary, remote, flexible, and job-sharing, reflecting the labor market's diversity and adaptability to modern work environments. These options provide employees with tailored work-life balance solutions while meeting employers' operational needs.

Working Hours: In the UAE, the standard working schedule is 8 hours per day, totaling up to 48 hours per week from Monday to Friday. During Ramadan, daily working hours are reduced by 2 hours. The UAE government has recently adjusted the working week for public sector employees to four and a half days, with the new weekend spanning from Friday afternoon to Sunday. This change also applies to educational institutions, which now operate Monday to Friday on a similar schedule.

As of 2022, Friday is no longer the mandatory rest day, and many organizations across both the public and private sectors have transitioned to a Monday to Friday schedule. Employees wishing to participate in Friday congregational prayers are accommodated with the option to work remotely or receive an extended break to attend the prayers.

Typical business hours are from 08:00 to 13:00, resuming from 16:00 to 19:00 after the day cools down.

In Free Zones and during Ramadan, working hours may vary.

Overtime: Overtime pay is mandated for hours worked beyond the standard weekly limit, as outlined in employment contracts or collective agreements. Overtime rates differ: 150% of the regular pay rate applies to work between 9 pm and 4 am, and 125% for other times.

Employees working on Fridays are entitled to an extra paid day off and overtime compensation at a rate of 150% of the normal pay.

Standard Working Week: The standard working week is Monday through Friday.

Minimum Wage: The UAE Labour Law does not specify a minimum wage, but it does require that salaries adequately meet the basic needs of employees. Employers registered with the Ministry of Human Resources and Emiratisation (MoHRE) are obligated to use the 'Wages Protection System (WPS)' for paying employee wages on the designated due dates.

Through the WPS, employee salaries are directly deposited into their accounts at banks or financial institutions that the Central Bank of the UAE authorises to offer this service.

Payroll laws in Slovenia

In Slovenia, salaries are paid monthly on the last working day of each month.

Employment benefits in Slovenia

Leave Policies in Slovenia

Paid Time Off:

Paid Annual Leave

Additional Annual Leave Entitlements

Mandatory Holiday Allowance

Public Holidays:

In Slovenia, there are 11 public holidays in 2024. 

Sick Days:

In Slovenia, employers must compensate employees for sick leave up to 30 days, as per their contract/agreement. For work-related illnesses, 100% salary is paid; for regular sick leave, it's typically 80%. If sick leave exceeds 30 days, Social Security covers compensation until the employee is fit to work or their employment ends. A medical certificate is required promptly.

Maternity Leave:

In Slovenia, mothers get 105 days of paid maternity leave starting 28 days before the due date, with a minimum of 15 days mandatory. To qualify, the employee must have made insurance payments to Parent Protection over the previous three years. Social Security compensates based on contributions, ranging from 55% to twice the average salary.

Paternity Leave:

In Slovenia, fathers get 30 days of paternity leave, with the benefit being 100% of their base amount. However, this benefit cannot be more than 2.5 times the average monthly wage.

Public Health Insurance 

In Slovenia, public health insurance is overseen by the Health Insurance Institute of Slovenia (HIIS). The system ensures access to vital healthcare services for all citizens, particularly those in need and low-income individuals. Slovenians pay affordable premiums, with subsidies offered to those with financial constraints. The insurance covers various medical services, from preventive care to hospitalization, leading to enhanced healthcare accessibility and affordability, thereby aiding Slovenia's journey towards universal health coverage and better public health outcomes.

Filing tax in Slovenia

Income Tax:

Income tax contributions in Slovenia vary based on income levels. Rates range from 16% for earnings up to 8,755 EUR, increasing progressively to 50% for income exceeding 74,160 EUR. Tax rates between these brackets are 26%, 33%, and 39% respectively. For a detailed breakdown of Slovenia's tax structure, including specific rates and brackets, visit our comprehensive guide.

Other Tax and Social Security Contributions:

Other tax and social security contributions in Slovenia include employer payroll contributions such as pension, disability, health insurance, unemployment, work injury, and parental care. Employees contribute to pension, disability, health insurance, unemployment, parental care, and medical contribution. For a detailed breakdown of Slovenia's tax structure, including specific rates and brackets, visit our comprehensive guide.

Business culture in Slovenia

Business culture in Slovenia is characterized by a blend of traditional values and modern professionalism, reflecting its position as a dynamic European economy. Here are some key aspects of Slovenian business culture:

• Slovenians value their cultural heritage and traditions, which influence business practices such as respect for hierarchy and formalities in meetings and interactions.
• Slovenian business culture prioritizes professionalism, including punctuality, reliability, and adherence to ethical standards in business dealings.
• Building trust through personal relationships is important in Slovenian business culture. Face-to-face interactions and networking events are valued for establishing and maintaining business connections.
• While maintaining respect for hierarchy, Slovenians appreciate open and direct communication. They value honesty, transparency, and clarity in business discussions.
• Despite a strong emphasis on tradition, Slovenian businesses are adaptable and open to innovation. They embrace new technologies and ideas while preserving core values, contributing to their competitiveness in the global market.

Top sectors to hire from in Slovenia

Services Sector

With nearly 58% contribution to the GDP and employing over 65% of the workforce, the services sector offers abundant employment opportunities. This sector includes fields such as finance, tourism, IT, healthcare, and professional services.

Industry

Accounting for around 29% of the GDP and employing about 30% of the workforce, the industrial sector in Slovenia encompasses manufacturing, construction, energy production, and technology, offering diverse job prospects.

Agriculture

While contributing a smaller share to the GDP (1.71%), the agricultural sector still employs over 4% of the workforce. Opportunities exist in farming, agribusiness, food processing, and related fields.

Top cities to hire from Slovenia

Ljubljana 

As the capital city, Ljubljana is the economic, cultural, and political center of Slovenia. It hosts the University of Ljubljana, which is the largest and oldest university in the country, providing a rich pool of young and educated talents across various disciplines.

Maribor 

This city is known for its industrious roots and is the second-largest city in Slovenia. Maribor is home to the University of Maribor, which emphasizes engineering and technical disciplines, making it a good spot for hiring skilled professionals in these fields.

Kranj 

Kranj is an important economic center in Slovenia, known for its manufacturing, logistics, and technology industries. The proximity to technological developments and infrastructure makes it an attractive city for hiring in technical and industrial sectors.

Celje 

Though smaller, Celje is rapidly growing in economic terms, with a focus on entrepreneurship and innovation. The city's workforce is known for its skills in manufacturing, crafts, and service industries.

Hire in Slovenia compliantly with Gloroots

Gloroots, as an Employer of Record (EOR) in Slovenia, offers a seamless approach to address the distinctive challenges of recruiting in the region. Our platform facilitates rapid onboarding of candidates, ensuring a swift and compliant start to operations. Designed to accommodate organizations of various sizes, Gloroots streamlines payroll processing, benefits management, and tax compliance, eliminating the need for a local corporate presence. This enables companies to concentrate on effectively building their remote teams in Slovenia. For more details on how Gloroots can support your Slovenian hiring efforts, please reach out to us.

Frequently Asked Questions 

What are the basic legal requirements for hiring employees in Slovenia?

In Slovenia, employers must adhere to the Employment Relationships Act, which sets forth the conditions for employment contracts, working hours, and termination procedures. All employment contracts must be in writing and include specific information such as job description, location, salary, working hours, and notice periods. Employers are also required to register employees with the Slovenian Health Insurance Institute (ZZZS) and the Pension and Disability Insurance Institute (ZPIZ) to ensure proper social security and pension contributions.

How does the probationary period work for new employees in Slovenia?

In Slovenia, the probationary period for new employees can be agreed upon by both the employer and the employee, but it cannot exceed six months. This period is intended to assess the employee's suitability for the role. During this time, either party may terminate the employment with a shorter notice period, typically seven days, unless otherwise stipulated in the employment contract.

Are there any specific benefits that must be provided to employees in Slovenia?

Yes, employers in Slovenia are required to provide certain mandatory benefits, including paid annual leave, which is a minimum of 20 days per year, and paid sick leave, which varies depending on the length of employment and the specific circumstances of the illness. Additionally, maternity, paternity, and parental leave are also provided as per national regulations. Employers must also contribute to health insurance, pension, and disability insurance schemes for their employees.