2027 does not bring one big change but several smaller ones which, for a business owner, add up to higher payroll costs, higher minimum contributions and new VAT rules. The most visible is the minimum wage of €972, but minimum wage entitlements, weekend and night-work premiums, income tax thresholds and contributions for the self-employed are also changing.
From 1 January 2027, the monthly minimum wage will be €972. The Ministry of Labour published this amount in the Collection of Laws as No. 232/2026 Coll. (promulgated on 23. 9. 2026). The amount results from the statutory automatic mechanism under which the minimum wage is 60% of the average nominal monthly wage in the economy from two years earlier.
In 2025, the average nominal monthly wage was €1,620. Sixty per cent of this amount is exactly €972.
With standard working hours of 40 hours a week, the hourly minimum wage comes to €5.586 per hour, because for the hourly minimum wage the law uses 1/174 of the monthly amount.
| Year | Monthly minimum wage | Increase |
|---|---|---|
| 2026 | 915 € | — |
| 2027 | 972 € | +57 € |
For an employer, this does not just mean a higher gross wage. Minimum wage entitlements by work difficulty level and several wage premiums are also linked to the minimum wage.
If the employer does not have pay conditions agreed in a collective agreement, each job must be classified in one of six work difficulty levels. The employee may then not be paid less than the minimum wage entitlement for their level.
Since 2021, the amount for higher levels has no longer been determined by simply multiplying the current minimum wage by a coefficient. The law preserves the differences between the levels, and each year every level rises by the same absolute amount as the minimum wage. With the minimum wage rising from €915 to €972, each level will therefore rise by €57.
| Work difficulty level | 2026 minimum | 2027 minimum |
|---|---|---|
| 1 | 915 € | 972 € |
| 2 | 1 031 € | 1 088 € |
| 3 | 1 147 € | 1 204 € |
| 4 | 1 263 € | 1 320 € |
| 5 | 1 379 € | 1 436 € |
| 6 | 1 495 € | 1 552 € |
Several premiums under the Labour Code are calculated as a percentage of the hourly minimum wage. As the hourly minimum will rise to €5.586 in 2027, these wage premiums will automatically rise as well.
Under the standard regime, the statutory minimum will be:
| Work | Statutory minimum | Amount in 2027 |
|---|---|---|
| Saturday | 50% of the hourly minimum wage | €2.793/h |
| Sunday | 100% of the hourly minimum wage | €5.586/h |
| Night work | 40% of the hourly minimum wage | €2.2344/h |
| Hazardous night work | 50% of the hourly minimum wage | €2.793/h |
Where the nature of the work or the operating conditions require work to be performed regularly on Saturdays or Sundays, the law allows lower rates to be agreed: at least 45% for Saturdays and at least 90% for Sundays. For night work, it is at least 35% if the majority of work is performed as night work. A lower rate may be agreed in a collective agreement, or in an employment contract if no trade union operates at the employer and it employed fewer than 20 employees as at 31 December of the previous year. For hazardous work, a lower night-work premium cannot be agreed; at least 50% always applies. The exact rate therefore also depends on the arrangements at the specific employer.
For businesses open at weekends, the rise in premiums may be more noticeable than the increase in the basic wage itself.
The system of compulsory social insurance for the self-employed changed significantly as early as 1 July 2026. However, the new rules will have their full impact in 2027 as well. The Act introduced a special assessment base for some low-income self-employed persons and changed the rules on when compulsory insurance arises and ends.
The so-called special assessment base is 26% of the average monthly wage from two years earlier. For 2027, it is €421.20, and the contributions on it are €139.61 a month. The Social Insurance Agency already gives this amount in its official calculator.
However, the micro-contribution does not mean that every sole trader will pay social insurance contributions of €139.61 in 2027. It is a special regime for cases defined by law. For self-employed persons with a higher assessment base, contributions are calculated in the standard way.
In the income test as at 1 July 2027, business income for 2026 is decisive. If it did not exceed €2,983.37 (10.5 times the subsistence minimum applicable on 1 January 2026), compulsory insurance does not arise. For income above this threshold, but not exceeding €9,720, the micro-contribution is paid. For higher income, contributions are calculated in the standard way.
The average monthly wage for 2025 was €1,620. Under the Act, the ordinary minimum social insurance assessment base for the self-employed is linked to 60% of the average wage from two years earlier, so for 2027 it comes to €972.
A self-employed person who is not covered by the special micro-contribution and pays contributions from the minimum standard base should therefore expect a higher monthly payment in 2027 than in 2026.
The increased health insurance rate is not just a one-year change. The Act expressly provides that from 1 January 2026 to 31 December 2027, the health insurance contribution rate for the self-employed is 16% of the assessment base, or 8% for a person with a disability. During this period, an employer pays 11%, or 5.5% for an employee with a disability.
The minimum health insurance assessment base for the self-employed is 50% of the average monthly wage from two years earlier. With an average wage of €1,620, the minimum base for 2027 is therefore €810.
At the 16% rate, this gives a minimum monthly advance payment of €129.60. For a person with a disability, at the 8% rate, it is €64.80.
This is an important difference from social insurance: health and social insurance contributions use different minimum assessment bases, and the two must not be confused.
From 2026, four progressive bands apply to the tax base from employment income, rental income, income from the use of copyright works and other income: 19%, 25%, 30% and 35%. For business income, the same bands apply only once income exceeds €100,000; more on this below. Under the current law, the multiples of the subsistence minimum themselves remain the same, but the thresholds change every year according to the subsistence minimum applicable on 1 January.
From 1 July 2026, the subsistence minimum for one adult is €295.22, so this amount will also be the applicable subsistence minimum on 1 January 2027.
This gives the following thresholds for 2027:
| Rate | Part of the tax base |
|---|---|
| 19 % | up to €45,700.06 |
| 25 % | over €45,700.06 up to €62,704.73 |
| 30 % | over €62,704.73 up to €77,938.08 |
| 35 % | over €77,938.08 |
These thresholds result from multiplying the subsistence minimum by 154.8, 212.4 and 264, as set out in Section 15 of the Income Tax Act.
For sole traders, one more thing is important: for income from business and other self-employment of up to €100,000, the special rate of 15% remains under the current wording of the law. Only once the €100,000 threshold is exceeded do the progressive bands apply to the business tax base.
Under the current law, the tax-free allowance per taxpayer equals 21 times the subsistence minimum if the tax base does not exceed the statutory threshold of 91.8 times the subsistence minimum.
With a subsistence minimum of €295.22, the basic annual tax-free allowance for 2027 therefore comes to €6,199.62. The full amount applies to a tax base of up to €27,101.20. Above this threshold, the tax-free allowance is €15,233.35 minus one third of the tax base; at a tax base of €45,700.06 or more, it is zero.
This figure matters not only for employees’ annual tax reconciliation but also for tax advance payments and for the tax returns of the self-employed.
As at 25 September 2026, the three-rate system remains in place for legal entities:
| Taxable income for the year | Tax rate |
|---|---|
| up to €100,000 | 10 % |
| over €100,000 up to €5,000,000 | 21 % |
| over €5,000,000 | 24 % |
These rates are set out in the current wording of Section 15 of the Income Tax Act, and the Financial Administration gives the same breakdown. The rate is determined by taxable income (revenue) for the year, not by profit, and it applies to the entire tax base.
If another consolidation package is adopted before the end of the year, this part of the article is one of the points that will need to be checked again before 1 January 2027.
Amendment No. 385/2025 Coll. to the VAT Act extends the special method of paying tax from 1 January 2027. Until now, a payer could, under certain circumstances, use the special method of paying VAT voluntarily in order to avoid liability for the supplier’s unpaid tax. From 2027, where there is a justified concern that the supplier will not pay the VAT, the tax office may, by decision, require the customer to pay the VAT on a specific invoice directly to the tax administrator’s account kept for the supplier.
In such a case, the customer does not pay the full invoiced amount to the supplier. It pays the tax base to the supplier and the VAT directly to the tax administrator. If the customer fails to fulfil the obligation imposed by the decision, the tax office will impose a fine of up to the amount of VAT stated on the invoice.
For an ordinary company, this will not be an everyday matter, but with high-risk suppliers it may be a change of real practical importance.
From 1 January 2027, the rules on mandatory electronic invoicing for selected domestic transactions also take effect, as does the obligation to be able to send and receive invoices through the delivery service of a certified provider. As we cover e-invoicing separately on matu.sk, we do not go into detail here.
The restriction on VAT deduction for certain passenger cars is not a change taking effect in January 2027, but it will still apply in 2027. For vehicles of categories M1, L1e and L3e used both for business and privately, a flat-rate VAT deduction of 50% applies from 1 January 2026 to 30 June 2028. Subject to the conditions of the Act, the same rule also applies to related goods and services, such as fuel, servicing or spare parts.
A full VAT deduction is possible if the statutory conditions for exclusive business use are met, and it comes with record-keeping and notification obligations. In 2026, the Financial Administration also announced targeted inspections of such cases.
For a company with employees, the most important thing is to recalculate wages before the December payroll is processed. Check the classification of jobs into work difficulty levels, any wages below the new minimums, and any operations involving weekend or night work.
A self-employed person should check social and health insurance separately. In social insurance, a new system including the micro-contribution has applied since 2026; in health insurance, the increased rate of 16% remains in place in 2027 and the minimum assessment base is rising.
A VAT payer should have an e-invoicing process in place and also be prepared for the tax administrator to order a special VAT payment where a supplier is high-risk.
And an s. r. o. should, for now, base its 2027 budget on the currently applicable tax rates of 10%, 21% and 24%. As tax laws in Slovakia are often still being changed in the autumn, we recommend a final re-check of the rates and thresholds in December 2026.
| Item | 2027 |
|---|---|
| Minimum wage | 972 € |
| Hourly minimum wage at 40 h/week | 5,586 € |
| Minimum wage entitlement, level 6 | 1 552 € |
| Minimum health insurance assessment base for the self-employed | 810 € |
| Minimum health insurance advance for the self-employed at 16% | 129,60 € |
| Special social insurance assessment base – micro-contribution | 421,20 € |
| Contributions on the special assessment base | 139,61 € |
| Non-taxable part for the taxpayer | 6 199,62 € |
| 19% personal income tax band | up to €45,700.06 |
| 25% band | 45 700,06 € – 62 704,73 € |
| 30% band | 62 704,73 € – 77 938,08 € |
| 35% band | over €77,938.08 |
| s. r. o. tax on income up to €100,000 | 10 % |
| s. r. o. tax on income over €5 million | 24 % |
If you have employees, run a sole trader business or own an s. r. o., the changes will affect you not only when you file your tax return. Wages and contributions need to be set correctly as early as the January payroll, and for VAT, the new rules may also affect how you receive invoices and pay suppliers. At matu.sk, we will check your wages, contributions and your company’s tax settings and prepare your bookkeeping so that the new obligations do not have to be dealt with at the last minute.
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