Odvody are mandatory payments for social and health insurance that are paid from income. They go to Sociálna poisťovňa (social insurance) and zdravotná poisťovňa (health insurance).
Who pays and how
- Employees — the employer withholds part of the payments from the salary, and pays the rest on top.
- Živnostníci (Slovak sole-traders) — calculate and pay the payments themselves, every month.
Your future payments depend on the payments you make: pension, sick pay, unemployment benefits, and medical care. For entrepreneurs, there is usually a minimum base from which contributions are calculated, so even with a small income, there is a minimum monthly payment. New živnostníci (sole-traders) in their first year usually do not pay social insurance contributions — but health insurance must be paid immediately.
