In 2021, the same applies as in 2020, namely that holiday pay in the amount of 100% of the last known average salary in the Republic of Slovenia is tax-free. The last published data of the average monthly gross salary amounts to 2009.50 euros. Up to this amount, it is not necessary to calculate income tax and social security contributions.
The minimum amount of holiday pay is determined by the Labor Relations Act, which stipulates that the employer is obliged to pay holiday pay to an employee who is entitled to annual leave, at least in the amount of the minimum wage. From 1 January 2021, the minimum wage is EUR 1024.24 for full-time work (Minimum Wage Act; Official Gazette of the Republic of Slovenia, no. 13/10, 92/15 and 83/18). The minimum amount of the holiday allowance is thus €1,024.24 gross. Any collective industry agreement may also specify a higher recourse than the minimum mentioned.
The right to pay holiday pay is tied to the right to annual leave. If the employee is only entitled to a proportionate part of the holiday, he is also entitled to only a proportionate part of the holiday. An employee is entitled to holiday pay even if he does not take annual leave, even though he is entitled to it. In the event that an employee changes jobs, each employer must pay him a proportional part of the holiday (1/12 for each month of employment). In the event that an employee enters into an employment relationship during the year (or terminates his employment relationship during the year), he has the right to a proportional part of the holiday (1/12 for each month of employment). If the employer pays the employee the full allowance despite the employee’s right to a proportional part of the allowance, the difference in the payment over the entitlement is considered another income from the employment relationship, which is fully included in the tax base for income tax and contributions.
The deadline for the payment of the holiday allowance is until July 1, 2021. In case of liquidity problems, the holiday allowance can be paid no later than November 1, 2021.