On Tuesday, September 9, 2025, the Minister of Finance presented the long-awaited third package of measures to improve public finances; the next day, September 10, the government approved the draft law and asked parliament to consider it in an accelerated procedure. This is a large set of changes that are expected to take effect from 2026 and will affect employees, entrepreneurs, the self-employed, pensioners, and local budgets.
Below is a simple and clear explanation of what is being proposed and what might concern you specifically.
1) Taxes for natural persons
A progressive tax scale is being introduced for employees with high incomes. The main rates are as follows (annual amounts):up to €44,000 — 19% rate;
from €44,000 to €60,000 — 25% (only on the amount over €44,000);
from €60,000 to €75,000 — 30%;
over €75,000 — 35%.
The draft law also includes stricter rates for high-ranking positions (deputies, high officials) — the rates are higher there.
What this means for you: higher salaries mean higher taxes. For most employees with average incomes, the changes are not critical.
2) Self-employed (SZČO) and new entrepreneurs
The minimum basis for calculating contributions for SZČO is being raised from 50% to 60% of the average salary. Minimum contributions will increase from €252.59 to €303.11.The "holidays" for new sole traders (FOP) are being shortened: the obligation to pay contributions will now start after 6 months, even if the earnings are low. The minimum payment will be €131.34/month.
There are plans for a tougher fight against fictitious sole traders and changes to the definition of dependent work; penalties for illegal employment will increase.
What this means for you: the self-employed will have to pay contributions faster and more.
3) Contributions and insurance
Payments during sick leave (PN), childcare leave (OČR), and maternity leave will now be subject to contributions.Employee on sick leave: the employer will pay compensation for 14 days (previously 10), social insurance will start payments from the 15th day.
Stricter control of sick leave (PN) is being introduced to reduce abuse.
The tax on insurance is increasing from 8% to 10%.
What this means for you: you will receive less in hand during sick leave or maternity leave, employers and employees will generally pay more contributions, and insurance policies will become more expensive.
4) VAT and goods
VAT will be increased on products with excessive sugar or salt content (chocolate, cookies, ice cream, jams, sweet drinks, snacks) from 19% to 23%. Exceptions: baby food, milk drinks, yogurts, 100% sugar-free juices.Limitation of VAT deduction for cars: if a company car is used partly for private purposes, the company will only be able to deduct 50% of the VAT.
A new fee for the extraction of construction materials (sand, gravel, crushed stone) — €1.35/ton.
What this means for you: sweets and snacks will become more expensive, prices for construction materials will slightly increase, and it will be more expensive for businesses to maintain their car fleet.
5) Business and financial sector taxes
The minimum tax for large companies with a turnover of over €5 million will be €11,520/year.The special tax for investment and management companies is increasing from 4.36% to 15%.
Gambling tax rates are increasing: online, casinos, slot machines.
What this means for you: if you work in the financial or gambling sector, tax expenses will increase. For large companies, there will be a new minimum tax.
6) Social benefits
Unemployment benefits are changing: the first 3 months — 50% of salary, then a decrease: 40% (4th month), 30% (5th month), 20% (6th month).During childcare, the state will no longer pay contributions to the pension system. This means these years will not be counted towards a pension.
What this means for you: it will be harder to be unemployed for a long time, and parents staying at home with children will have lower pensions in the future.
7) Pensions
The 13th pension will be paid in 2026 (€667.30), but this amount will be frozen for three years (2026–2028).What this means for you: pensioners will receive less than expected, considering inflation.
8) Holidays and trade
Some holidays will become working days:permanently — September 1 (Constitution Day) and November 17 (Day of Struggle for Freedom and Democracy);
in 2026 additionally: January 6 and May 8.
The ban on trading on holidays is being lifted.
What this means for you: more working days for employees in trade and services, shops will be open on holidays.
9) Measures to combat tax evasion
From 1.1.2026 to 30.6.2026, it will be possible to voluntarily pay underpayments without fines and penalties (applies to personal income tax, VAT, excise duties, vehicle tax, insurance tax).QR payments and cashless instruments will become mandatory from March 2026.
What this means for you: entrepreneurs will need to prepare cash registers and terminals for cashless payments, and those with tax debts will have the opportunity to pay them without fines and start from scratch.
10) Reduction of state expenses
Ministries and agencies must save: fewer purchases, cancellation of unnecessary cars and projects, merging of institutions. This is the largest savings item — €1.14 billion.What this means for you: this will not directly affect ordinary people, but the state will have less money to maintain institutions and provide services.
The package is large and comprehensive. It combines saving state expenses and increasing revenue through taxes and contributions. Some changes will affect you directly (especially if you are self-employed or work in trade/services), others will have an indirect impact (prices, availability of holiday weekends). The draft law still needs to go through parliament, so there may be amendments to the details — follow the news.
