The Slovak government is preparing changes to the law that will significantly ease the financial situation for micro-entrepreneurs. Starting July 1, 2026, self-employed individuals (SZČO) with the lowest incomes will be completely exempt from paying social security contributions. This was officially announced by the Minister of Labor, Erik Tomáš, and a relevant amendment to the social security law will soon be submitted to parliament.
Key Changes and Income Limits
The main innovation is setting a clear income limit below which an entrepreneur is exempt from payments to the Social Insurance Agency (Sociálna poisťovňa). The exemption applies to those who earn less than 10.5 times the subsistence minimum per year. Currently, this threshold is approximately €2,984 per year. This amount will not be fixed; it will change each year along with the subsistence minimum, which will allow for current living costs to be considered.
The introduction of this benefit is a direct response to the implementation of the so-called "micro-levy" – a mandatory minimum contribution that is also set to take effect in July 2026. Without the planned exemption, even entrepreneurs earning minimal amounts would be required to pay the state about €131.34 per month (over €1,500 per year), which would be economically impossible for many.
Calculation Mechanism and Exceptions
It is important to understand that the new benefit has specific application features.
Entrepreneurs will not need to submit special applications. The exemption status will be determined automatically based on data from their submitted tax return.
The benefit applies exclusively to payments to the Social Insurance Agency. Health insurance (zdravotné odvody) remains mandatory for all entrepreneurs according to current rules.
According to preliminary calculations, this initiative will cost the state budget about €40 million per year, but it will help maintain the activity of micro-businesses.
This reform is part of a broader discussion about the social protection of self-employed individuals. The government's goal is to find a balance between mandatory pension savings and preventing excessive tax burdens on those engaged in small-scale entrepreneurship. It is expected that, with the coalition's support, the bill will be passed in the near future.
