Employing in Slovakia

Access and hire global talent & deploy them anywhere in the world by removing restrictions from only hiring from local markets.

Enter the Slovakian market without the requirement of opening a local entity.

Expanding into Slovakia

Employing in  Slovakia, which is characterised by an excellent infrastructure, a well-educated workforce, and a strategic location landlocked in Central Europe- can bring excitement to the possibilities and significant stress to ensure the entity with the country’s structure and structure laws.

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Ensuring compliance without sufficient knowledge of the country’s laws also adds stress to getting your new entity off the ground and ready to test new markets. Going at it without the proper support can increase the costs, time and risks involved

Global expansion is a step to make for any business, regardless of what you wish to achieve. The opportunities that can come with an expansion can be both incredibly exciting as well as intimidating and confusing, especially when you consider all the registration procedures that need to be done and the documentation required.

Each new markets bring new challenges, and these can be worked through more efficiently and cost-effectively with the support of a Professional Employer Organisation (PEO) such as Bradford Jacobs, especially through our Employer of Record (EOR) framework.

This can be best utilised when businesses are just beginning their expansion process and require more information before committing to incorporating an entity and fully establishing themselves in that market.

Country EOR Guide - Bradford Jacobs

Download our Guide to Slovakia

Learn all about expanding into Slovakia and see what we can do to make your expansion easier.

Download our Guide to Slovakia

Learn all about expanding into Slovakia and see what we can do to make your expansion easier.

Country EOR Guide - Bradford Jacobs

Hiring Staff
in Slovakia

Hiring Staff
in Slovakia

The Main Sectors of the Slovakian Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

The agriculture sector is underdeveloped and represented only 2.2% of the GDP and 2.8% of employment in 2021 (World Bank). Today, only about two-fifth of Slovakia’s territory is arable. On the fertile lowlands, wheat, barley, sugar beets, corn (maise), and fodder crops are the most important crops, whereas, on the relatively poor soils of the mountains, the principal crops are rye, oats, potatoes, and flax. Tobacco and fruits are grown in the Váh valley, and vineyards thrive on the slopes of the Carpathian ranges in Západní Slovensko Kraj (region). On the plains, farmers raise pigs and cattle. Sheep raising is prevalent in mountain valleys. In 2021 the country’s agricultural sector recorded a decrease of -14.3%, according to preliminary data from Eurostat, which the ongoing COVID-19 pandemic can explain.

The secondary sector represents 26.4% of the GDP and employs 36.1% of the workforce. Heavy industry sectors – such as metal and steel – are still restructuring. High-value-added industries, like electronics, engineering, and petrochemicals, are installed in the western part of the country. Sectors like automobile and consumer goods experienced a sizeable contraction during the pandemic but have started to recover relatively fast and are offering attractive opportunities to foreign investors. The World Bank estimates that manufacturing alone accounts for more than one-fifth of Slovakia’s GDP (26.4%). Bratislava, Košice, and the towns along the Váh River are Slovakia’s leading manufacturing centres. Important industries include automobiles, machinery, steel, ceramics, chemicals, textiles, food and beverage processing, arms, and petroleum products. From electrical engineering companies, Foxconn has a factory at Nitra for LCD TV manufacturing and Samsung at Galanta for computer monitors and television sets manufacturing.

The automotive sector is among the fastest-growing sectors in Slovakia. Passenger car production was 1,040,000 units in 2016 and 1,090,000 in 2018, which makes Slovakia the largest automobile producer in produced cars per capita. 275,000 people are employed directly and indirectly by the automotive industry. Figures from the national statistical office show that in the first eleven months of 2021, industrial production decreased by 8.9% year-on-year. Such contraction can be explained, among other factors, by the fact that automotive production, a crucial sector of the Slovak economy, had its main production plants closed for the majority of the first half of 2021.

Slovakia has limited brown coal and lignite reserves, located in the foothills near Handlová to the west and Modrý Kameň to the south. Brown coal has been used in thermal power stations, as fuel in the home, and as raw material in the chemical industry. Pipelines import Russian oil (to a major refinery at Bratislava) and natural gas, supplementing existing coal gas supplies. In the 21st century, Slovakia added pipelines to Austria, the Czech Republic, and Hungary, a diversification of supply that took on additional import in the wake of the crisis in Ukraine in 2014.

The services sector contributes 61.0% of the GDP and employs around 61.1% of the active population. It is dominated by trade and real estate. Tourism development may also become important for the Slovak economy in the coming years, as it was one of the country’s most dynamic sectors before the outbreak of the COVID-19 crisis (6.2 million tourists before the pandemic. Slovakia features natural landscapes, mountains, caves, medieval castles and towns, folk architecture, spas and ski resorts. The most attractive destinations are the capital of Bratislava and the High Tatras.

Slovakia remains strongly dependent on external markets, with foreign exchange reaching 170.6% of its GDP in 2020 (World Bank, latest data available). Since 2009, the economic growth of Slovakia has been driven by its exports. The country represents a platform of re-exportation for the European automotive industry (28% of the country’s total exports in 2020). Slovakia has an overall positive trade balance, though it has decreased over the last few years and amounted to only 0.9% of GDP in 2020 (World Bank).

The Main Sectors of the Slovakian Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

The agriculture sector is underdeveloped and represented only 2.2% of the GDP and 2.8% of employment in 2021 (World Bank). Today, only about two-fifth of Slovakia’s territory is arable. On the fertile lowlands, wheat, barley, sugar beets, corn (maise), and fodder crops are the most important crops, whereas, on the relatively poor soils of the mountains, the principal crops are rye, oats, potatoes, and flax. Tobacco and fruits are grown in the Váh valley, and vineyards thrive on the slopes of the Carpathian ranges in Západní Slovensko Kraj (region). On the plains, farmers raise pigs and cattle. Sheep raising is prevalent in mountain valleys. In 2021 the country’s agricultural sector recorded a decrease of -14.3%, according to preliminary data from Eurostat, which the ongoing COVID-19 pandemic can explain.

The secondary sector represents 26.4% of the GDP and employs 36.1% of the workforce. Heavy industry sectors – such as metal and steel – are still restructuring. High-value-added industries, like electronics, engineering, and petrochemicals, are installed in the western part of the country. Sectors like automobile and consumer goods experienced a sizeable contraction during the pandemic but have started to recover relatively fast and are offering attractive opportunities to foreign investors. The World Bank estimates that manufacturing alone accounts for more than one-fifth of Slovakia’s GDP (26.4%). Bratislava, Košice, and the towns along the Váh River are Slovakia’s leading manufacturing centres. Important industries include automobiles, machinery, steel, ceramics, chemicals, textiles, food and beverage processing, arms, and petroleum products. From electrical engineering companies, Foxconn has a factory at Nitra for LCD TV manufacturing and Samsung at Galanta for computer monitors and television sets manufacturing.

The automotive sector is among the fastest-growing sectors in Slovakia. Passenger car production was 1,040,000 units in 2016 and 1,090,000 in 2018, which makes Slovakia the largest automobile producer in produced cars per capita. 275,000 people are employed directly and indirectly by the automotive industry. Figures from the national statistical office show that in the first eleven months of 2021, industrial production decreased by 8.9% year-on-year. Such contraction can be explained, among other factors, by the fact that automotive production, a crucial sector of the Slovak economy, had its main production plants closed for the majority of the first half of 2021.

Slovakia has limited brown coal and lignite reserves, located in the foothills near Handlová to the west and Modrý Kameň to the south. Brown coal has been used in thermal power stations, as fuel in the home, and as raw material in the chemical industry. Pipelines import Russian oil (to a major refinery at Bratislava) and natural gas, supplementing existing coal gas supplies. In the 21st century, Slovakia added pipelines to Austria, the Czech Republic, and Hungary, a diversification of supply that took on additional import in the wake of the crisis in Ukraine in 2014.

The services sector contributes 61.0% of the GDP and employs around 61.1% of the active population. It is dominated by trade and real estate. Tourism development may also become important for the Slovak economy in the coming years, as it was one of the country’s most dynamic sectors before the outbreak of the COVID-19 crisis (6.2 million tourists before the pandemic. Slovakia features natural landscapes, mountains, caves, medieval castles and towns, folk architecture, spas and ski resorts. The most attractive destinations are the capital of Bratislava and the High Tatras.

Slovakia remains strongly dependent on external markets, with foreign exchange reaching 170.6% of its GDP in 2020 (World Bank, latest data available). Since 2009, the economic growth of Slovakia has been driven by its exports. The country represents a platform of re-exportation for the European automotive industry (28% of the country’s total exports in 2020). Slovakia has an overall positive trade balance, though it has decreased over the last few years and amounted to only 0.9% of GDP in 2020 (World Bank).

Commercial Laws in Slovakia

The Financial Administration came into existence on 1 January 2012 through the merger of the former Tax Administration and Customs Administration into a single organisation. It comprises the Financial Directorate of the Slovak Republic (Finančné riaditeľstvo Slovenskej Republiky), Customs offices, Tax offices, and the Criminal Office of the Financial Administration.

The primary mission of the Financial Administration is to effectively collect and administer duties and tax to provide revenue for the state budget of the SR and the European Union (“EU”), protect the state’s economic interests, and guard state budget expenditure.

The Ministry of Labour, Social Affairs and Family of the Slovak Republic is the central state administration body responsible for employment support, social care, labour inspection, and the functioning of the pension scheme.

It designs and implements state policy concerning labour protection and manages and controls the National Labour Inspectorate. The role of the Ministry of Labour, Social Affairs and Family of the Slovak Republic is to modernise labour legislation to increase employment continually. It strives to create a balanced labour market while equally protecting employees and fulfilling employers’ requests.

The Section of Labour of the Ministry of Labour, Social Affairs and Family of the Slovak Republic establishes the measures oriented toward increasing employment by assisting job seekers, employees and employers. Protecting employees at their workplaces and combating illegal work and employment are significant parts of its work.

Commercial Laws in Slovakia

The Financial Administration came into existence on 1 January 2012 through the merger of the former Tax Administration and Customs Administration into a single organisation. It comprises the Financial Directorate of the Slovak Republic (Finančné riaditeľstvo Slovenskej Republiky), Customs offices, Tax offices, and the Criminal Office of the Financial Administration.

The primary mission of the Financial Administration is to effectively collect and administer duties and tax to provide revenue for the state budget of the SR and the European Union (“EU”), protect the state’s economic interests, and guard state budget expenditure.

The Ministry of Labour, Social Affairs and Family of the Slovak Republic is the central state administration body responsible for employment support, social care, labour inspection, and the functioning of the pension scheme.

It designs and implements state policy concerning labour protection and manages and controls the National Labour Inspectorate. The role of the Ministry of Labour, Social Affairs and Family of the Slovak Republic is to modernise labour legislation to increase employment continually. It strives to create a balanced labour market while equally protecting employees and fulfilling employers’ requests.

The Section of Labour of the Ministry of Labour, Social Affairs and Family of the Slovak Republic establishes the measures oriented toward increasing employment by assisting job seekers, employees and employers. Protecting employees at their workplaces and combating illegal work and employment are significant parts of its work.

FAQ

An Employer of Record (EOR) in Slovakia is a service that allows companies to quickly access the Slovakian market by handling the legal and regulatory responsibilities of employing staff in Slovakia. This includes managing labour contracts, ensuring compliance with local laws, handling tax contributions, and managing payroll.

To hire talent in Slovakia, combining talent acquisition strategies with Employer of Record (EOR) services can be highly effective. This approach allows companies to identify and onboard skilled professionals by leveraging the expertise of EORs for seamless employment compliance, payroll, and HR functions, without the need for a local entity or extensive knowledge of Slovak labor laws.

Managing payroll in Slovakia involves several options, including using a remote payroll system, or partnering with a local payroll processing company. However, for comprehensive management including compliance, outsourcing can be most effective. This approach ensures both payroll processing and adherence to local regulations, freeing businesses from administrative burdens.

No, you do not necessarily need an entity to hire in Slovakia. Partnering with an Employer of Record (EOR) service like Bradford Jacobs can facilitate hiring without the need for establishing a local entity. This approach can streamline the process of expanding your workforce in Slovakia by handling employment contracts and payroll under their established entities

FAQ

An Employer of Record (EOR) in Slovakia is a service that allows companies to quickly access the Slovakian market by handling the legal and regulatory responsibilities of employing staff in Slovakia. This includes managing labour contracts, ensuring compliance with local laws, handling tax contributions, and managing payroll.

To hire talent in Slovakia, combining talent acquisition strategies with Employer of Record (EOR) services can be highly effective. This approach allows companies to identify and onboard skilled professionals by leveraging the expertise of EORs for seamless employment compliance, payroll, and HR functions, without the need for a local entity or extensive knowledge of Slovak labor laws.

Managing payroll in Slovakia involves several options, including using a remote payroll system, or partnering with a local payroll processing company. However, for comprehensive management including compliance, outsourcing can be most effective. This approach ensures both payroll processing and adherence to local regulations, freeing businesses from administrative burdens.

No, you do not necessarily need an entity to hire in Slovakia. Partnering with an Employer of Record (EOR) service like Bradford Jacobs can facilitate hiring without the need for establishing a local entity. This approach can streamline the process of expanding your workforce in Slovakia by handling employment contracts and payroll under their established entities

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