Social Security Programs Throughout the World: Europe, 2016

Slovak Republic

Exchange rate: US$1.00 = 0.92 euros (€).

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1906 (salaried employees) and 1924 (wage earners).

Current laws: 2003 (social insurance), implemented in 2004; 2003 (employment services), implemented in 2004; and 2004 (individual accounts), implemented in 2005.

Type of program: Social insurance and individual account system.

Note: Since January 1, 2013, participation in the individual account program is voluntary for new entrants. The decision to contribute to an individual account must be made before age 35 and cannot be reversed.

Coverage

Employed persons; and self-employed persons with annual earnings of more than 12 times the minimum assessment basis.

The minimum assessment basis is €429.

Special systems for certain intelligence, security, police, fire, customs, and military personnel.

Source of Funds

Insured person

Social insurance: 4% of covered monthly earnings (old age) and 3% of covered monthly earnings (disability).

There are no minimum earnings used to calculate contributions.

The maximum monthly earnings used to calculate contributions are €4,290.

Individual account: None.

Self-employed person

Social insurance: 18% of declared monthly earnings (old age) and 6% of covered monthly earnings (disability) for social insurance only; 14% of declared monthly earnings (old age) and 3% of covered monthly earnings (disability) for social insurance and individual account.

The legal minimum monthly earnings used to calculate contributions are €429.

The legal maximum monthly earnings used to calculate contributions are €4,290.

Individual account: 4% of declared monthly earnings plus administrative fees.

Employer

Social insurance: 14% of monthly payroll (old age) and 3% of monthly payroll (disability) for insured persons who participate in social insurance only; 10% of monthly payroll (old age) and 3% of monthly payroll (disability) for insured persons who participate in social insurance and the individual account.

There are no minimum earnings used to calculate contributions.

The legal maximum monthly earnings used to calculate contributions are €4,290.

Individual account: 4% of monthly payroll for insured persons with an individual account.

Government

Social insurance: Finances any deficit; contributes for persons caring for children up to age six (age 18 with serious chronic health conditions), for maternity benefit recipients, and for disability benefit recipients (until retirement age or until the early retirement pension is paid).

Individual account: None.

Qualifying Conditions

Old-age pension (social insurance): Age 62 (gradually rising from 2017 according to increases in life expectancy) with at least 15 years of coverage. The pensionable age is reduced for women with children and for certain other circumstances.

Old-age pensioners may continue to work.

Early pension: Paid from two years before the normal pensionable age with at least 15 years of coverage. The monthly pension must be at least 1.2 times the legal monthly subsistence minimum.

The legal monthly subsistence minimum is €198.09.

The legal monthly subsistence minimum is the difference between specified sources of family income and actual income. The legal subsistence minimum is adjusted annually in July by the Ministry of Labor, Social Affairs, and Family.

Employment or self-employment must cease.

The minimum old-age pension is paid with at least 30 years of coverage. Total pension income from other pensions must be less than the minimum old-age pension.

Deferred pension: The pension may be deferred. There is no age limit.

Old-age pension (individual account): Age 62 (gradually rising from 2017 according to increases in life expectancy) with at least 15 years of coverage. The retirement age is reduced for women with children and for certain other circumstances.

Early pension: The total monthly early pension from social insurance and the individual account must be at least 1.2 times the legal monthly subsistence minimum.

The legal monthly subsistence minimum is €198.09.

The legal monthly subsistence minimum is the difference between specified sources of family income and actual income. The legal subsistence minimum is adjusted annually in July by the Ministry of Labor, Social Affairs, and Family.

Old-age benefits are payable abroad.

Disability pension: Must be assessed with a total disability (at least a 70% loss of earning capacity) or partial disability (at least 40% loss of earning capacity). The pension is paid with less than one year of coverage if aged 20 or younger; with at least one year if aged 21 to 24; with at least two years if aged 25 to 28; with at least five years if aged 29 to 34; with at least eight years if aged 35 to 40; with at least 10 years if aged 41 to 45; and with at least 15 years if older than age 45.

Disability pensioners may continue to work.

A medical examiner of the Social Insurance Agency and a general practitioner assess the degree of disability.

Disability benefits are payable abroad.

Survivor pension: The deceased received or was entitled to receive an old-age or disability pension or qualified for an early pension at the time of death.

Eligible survivors include a widow(er) who was married to the deceased, orphans younger than the age at which they can legally leave school (age 26 if a full-time student or disabled), and other survivors named by the deceased.

The pension ceases on remarriage.

Survivor benefits are payable abroad.

Old-Age Benefits

Old-age pension (social insurance): The monthly pension is the product of the average personal wage point, the length of the coverage period, and the current pension value (€10.9930).

The average personal wage point is the personal wage points earned during particular calendar years and the length of the coverage period, up to three wage points.

The personal wage point is the proportion of the insured's gross annual income in relation to the national average annual wage.

The insured's total covered earnings since 1984 are used to calculate pensions.

Early pension: The old-age pension is reduced by 0.5% for each 30-day period the pension is received before the normal pensionable age.

Deferred pension: The old-age pension is increased by 0.5% for each 30-day period the pension is received after the normal pensionable age.

The minimum monthly old-age pension is 136% of the legal monthly subsistence minimum plus 2% for each year of coverage exceeding 30 years and 3% for each year exceeding 39 years.

The legal monthly subsistence minimum is the difference between specified sources of family income and actual income. The legal subsistence minimum is adjusted annually in July by the Ministry of Labor, Social Affairs, and Family.

There is no maximum monthly old-age pension.

Benefit adjustment: Benefits are adjusted annually in January according to the average changes in the consumer price index and the national average wage.

Old-age pension (individual account): The insured has three options: a life annuity, fixed-term annuity, or programmed withdrawals. Life insurance companies pay annuities.

Early pension: Calculated in the same way as the old-age pension (individual account).

Deferred pension: Calculated in the same way as the old-age pension (individual account).

Permanent Disability Benefits

Disability pension: The monthly pension is the product of the average personal wage point, the length of the coverage period, and the current pension value (€10.9930).

The full pension is paid for a total disability.

The average personal wage point is the personal wage points earned during particular calendar years and the length of the coverage period, up to three wage points.

The personal wage point is the proportion of the insured's gross annual income in relation to the national average annual wage.

The insured's total covered earnings since 1984 are used to calculate pensions.

Partial disability: A percentage of the full pension is paid according to the assessed degree of disability.

There is no minimum monthly disability pension.

There is no maximum monthly disability pension.

The disability pension is replaced by the old-age pension at the normal retirement age.

Benefit adjustment: Benefits are adjusted annually in January according to the average changes in the consumer price index and the national average wage.

Survivor Benefits

Spouse's pension (social insurance): 60% of the old-age or disability pension the deceased received or was entitled to receive is paid. The pension is paid for one year; for life if the survivor has a disability with an assessed loss of earning capacity of at least 70%, cares for a dependent child, has raised at least three children, is at least aged 52 and has raised two children, or has reached pensionable age.

There is no legal minimum monthly survivor pension.

Orphan's pension (social insurance): 40% of the old-age or disability pension the deceased received or was entitled to receive is paid.

There is no minimum monthly orphan's pension.

All survivor benefits combined must not exceed 100% of the old-age or disability pension the deceased received or was entitled to receive.

Benefit adjustment: Benefits are adjusted annually in January according to the average changes in the consumer price index and the national average wage.

Survivors pension (individual account): If the deceased was younger than the normal pensionable age, the survivors receive the value of the balance in the deceased's individual account. If the deceased was an old-age pensioner but had received less than 84 monthly payments, survivors receive the difference between the sum of 84 monthly payments and the amount already received.

Administrative Organization

Social insurance: Ministry of Labor, Social Affairs, and Family (http://www.employment.gov.sk) provides supervision.

Social Insurance Agency (http://www.socpoist.sk), administers the program and collects contributions.

Individual account: National Bank of Slovakia (http://www.nbs.sk) licenses and supervises pension funds.

Licensed pension funds manage individual accounts.

Social Insurance Agency (http://www.socpoist.sk) collects contributions.

Sickness and Maternity

Regulatory Framework

First law: 1888.

Current laws: 1998 (medical products and devices); 1998 (childbirth allowance), implemented in 1999; 2003 (social insurance), implemented in 2004; 2003 (income replacement), implemented in 2004; 2004 (health care and services); and 2004 (health insurance).

Type of program: Social insurance system.

Coverage

Cash sickness and maternity benefits: Employed persons; and self-employed persons with annual earnings of more than 12 times the minimum assessment basis.

The minimum assessment basis is €429.

Voluntary coverage is available.

Special systems for certain intelligence, security, police, fire, customs, and military personnel.

Medical benefits: Universal coverage.

Exclusions: Persons insured abroad and non-Slovak citizens working in the Slovak Republic for employers with diplomatic privileges.

Source of Funds

Insured person

Cash benefits: 1.4% of covered monthly earnings; voluntarily insured persons contribute 4.4% of declared monthly earnings.

There are no minimum earnings used to calculate contributions.

The maximum monthly earnings used to calculate contributions are € 4,290.

Medical benefits: 4% of covered monthly earnings.

There are no minimum earnings used to calculate contributions.

The maximum monthly earnings used to calculate contributions are € 4,290.

Self-employed person

Cash benefits: 4.4% of declared covered monthly earnings.

The minimum monthly earnings used to calculate contributions are €429.

The maximum monthly earnings used to calculate contributions are €4,290

Medical benefits: 14% of declared covered monthly earnings.

The minimum monthly earnings used to calculate contributions are €429.

The maximum monthly earnings used to calculate contributions are €4,290.

Employer

Cash benefits: 1.4% of monthly covered payroll.

Medical benefits: 10% of monthly covered payroll.

There are no minimum earnings used to calculate contributions.

The maximum monthly earnings used to calculate contributions are €4,290.

Government

Contributes for nonemployed persons, and finances any deficit of the General Health Insurance Company.

Qualifying Conditions

Cash sickness benefits: Paid for a temporary incapacity for work; voluntarily insured persons must also have at least 270 days of coverage in the two years before the incapacity began. The insured must not be receiving the maternity benefit.

Cash maternity benefits: Must have at least 270 days of coverage in the two years before the expected date of childbirth. The benefit can also be paid to the child's father, the husband of the child's mother, and other persons subject to conditions.

Care for a sick relative benefit (OŇ°etrovné): Must be caring for a sick child, spouse, parent, or parent-in-law, or a child younger than age 11.

Equalization benefit: Paid to women who are exempt from some types of work while pregnant and who are redeployed by their employer to another job paying lower wages.

Medical benefits: There is no minimum qualifying period.

Sickness and Maternity Benefits

Sickness benefit: 55% of the daily assessment basis is paid from the 11th day of the temporary incapacity for work (the employer pays a benefit for the first 10 days). In certain circumstances, 25% of the daily assessment basis is paid for the first three days; thereafter, 55% of the assessment basis. The benefit is paid for up to 52 weeks.

The daily assessment basis is the insured's earnings in the last year before the incapacity began.

Maternity benefit: 70% of the daily assessment basis is paid from six to eight weeks before the expected date of childbirth for a total of 34 weeks; 37 weeks for a single mother and 43 weeks for multiple births.

The daily assessment basis is the insured's earnings in the last year before the expected date of childbirth.

Care for a sick relative benefit (OŇ°etrovné): 55% of the daily assessment basis is paid from the first day of nursing for up to 10 days.

The daily assessment basis is the insured's earnings in the last year before the care leave began.

Equalization benefit: 55% of the difference between the earnings before and after job transfer is paid until the end of the ninth month after childbirth.

Workers' Medical Benefits

Medical benefits include medical treatment, hospitalization, medicine, dental care (with limited cost sharing), maternity care, appliances, travel expenses, sanatorium, spa treatment, preventive examinations, vaccination, dispensary care, and convalescent stays for selected professions.

Medicine is free of charge or partially reimbursed, according to a schedule in law. There are no annual ceilings or limits. There is no limit to duration.

Cost sharing: Part of the cost for transportation (€0.07 per kilometer by ambulance); up to €3.32 a day for accompanying a person to hospital; €1.99 for emergency medical care; and €0.17 for every prescription submitted to a pharmacy for processing.

Dependents' Medical Benefits

Medical benefits for dependents are the same as those for the insured.

Administrative Organization

Ministry of Labor, Social Affairs, and Family (http://www.employment.gov.sk) provides supervision.

Social Insurance Agency (http://www.socpoist.sk) collects contributions and administers the cash benefit program.

Ministry of Health (http://www.health.gov.sk) and the Health Care Supervision Authority administer the provision of medical benefits through health centers and clinics.

Work Injury

Regulatory Framework

First law: 1887.

Current laws: 1965 (minimum requirements); 1986 (dangerous work); 2001 (workplace security and health); 2001 (labor code), implemented in 2002; 2003 (income tax), implemented in 2004; 2003 (social insurance), implemented in 2004; and 2004 (compensation).

Type of program: Social insurance system.

Coverage

Employed persons, students, and certain voluntary fire fighters and rescue workers.

Exclusions: Self-employed persons.

Special systems for police and military personnel.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 0.8% of gross payroll.

There are no minimum or maximum earnings used to calculate contributions.

Government: Finances any deficit.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period. Benefits are paid for 47 occupational diseases, according to a schedule in law. Accidents that occur while commuting to and from work are not covered.

Temporary Disability Benefits

Temporary disability supplement: From the first to the third day of incapacity, 55% of the insured's daily assessment basis is paid; thereafter, 25%.

The daily assessment basis is based on the insured's earnings in the last year before the disability began.

The temporary disability supplement is paid in addition to the sickness benefit (see sickness and maternity).

Rehabilitation benefit: 80% of the insured's daily assessment basis is paid during occupational rehabilitation.

The daily assessment basis is based on earnings in the last year before the disability began.

Retraining benefit: 80% of the insured's daily assessment basis is paid during retraining.

The daily assessment basis is based on earnings in the last year before the disability began.

In-kind benefits are also paid for professional rehabilitation. Lump sums are paid for compensation for pain and difficulties with social reintegration following a work injury or occupational disease.

Permanent Disability Benefits

Permanent disability benefit: If the insured has an assessed loss of earning capacity of greater than 40%, the monthly benefit is the product of 80% of 30.4167 times the insured's daily assessment basis and the assessed degree of disability.

The daily assessment basis is based on the insured's earnings in the last year before the disability began.

If the beneficiary receives the disability pension (see Old Age, Disability, and Survivors), the Work Injury permanent disability benefit is decreased by the amount of the disability pension.

The pension is replaced by the old-age pension at the normal pensionable age.

Partial permanent disability: A lump sum is paid for an assessed loss of earning capacity from 10% to 39% and is the product of the assessment basis (365 times the daily assessment basis) and the assessed degree of disability.

The daily assessment basis is based on the insured's earnings in the last year before the disability began.

Workers' Medical Benefits

Medical benefits: Health care centers and clinics provide all necessary medical services directly to patients.

The insured is reimbursed up to €26,227.20 for the cost of treatment for a work accident or occupational disease.

Survivor Benefits

Survivor pensions are paid under Old Age, Disability, and Survivors.

Survivor lump-sum benefit: 730 times the deceased's daily assessment basis is paid to the surviving spouse, up to €52,454.10 Children receive at least half the sum of the surviving spouse, up to €52,454.10.

Divorced survivor's benefit: A pension equal to the alimony amount is paid to divorced spouses who receive alimony (based on a court ruling) at the date of the insured's death. The benefit ceases when the deceased would have reached the normal pensionable age.

Funeral grant: Up to €2,623.20 is paid to the person who paid for the funeral.

Administrative Organization

Ministry of Labor, Social Affairs, and Family (http://www.employment.gov.sk) provides supervision.

Social Insurance Agency (http://www.socpoist.sk) administers the program.

Ministry of Health (http://www.health.gov.sk) and the Health Care Supervision Authority administer medical benefits provided through health centers and clinics.

Unemployment

Regulatory Framework

First law: 1991.

Current laws: 2003 (social insurance), implemented in 2004; and 2004 (employment services).

Type of program: Social insurance system.

Coverage

Unemployed job seekers.

Voluntary coverage for persons with voluntary coverage for cash sickness and old-age, disability and survivor benefits; and self-employed persons legally residing in the Slovak Republic who are currently or were previously covered for mandatory cash sickness and old age, disability, and survivors insurance.

Source of Funds

Insured person: 1% of covered earnings; voluntarily insured persons contribute 2% of declared covered earnings.

There are no minimum earnings used to calculate contributions.

The monthly minimum covered earnings used to calculate contributions for voluntary insured persons are €429.

The maximum covered earnings used to calculate contributions are €4,290.

Self-employed persons: Voluntarily insured persons contribute 2% of declared covered earnings.

The monthly minimum covered earnings used to calculate contributions are €429.

The maximum covered earnings used to calculate contributions are €4,290.

Employer: 1% of covered payroll.

There are no minimum earnings used to calculate contributions.

The maximum covered earnings used to calculate contributions are €4,290.

Government: Finances any deficit.

Qualifying Conditions

Unemployment benefit: Must register with the labor office as a job seeker and have at least two years of contributions in the last three years.

Unemployment Benefits

50% of the daily assessment basis is paid for up to six months.

The daily assessment basis is the insured's earnings in the two years before unemployment and the total earnings used to calculate contributions.

Administrative Organization

Ministry of Labor, Social Affairs, and Family (http://www.employment.gov.sk) provides supervision.

Social Insurance Agency (http://www.socpoist.sk) administers the program.

Family Allowances

Regulatory Framework

First law: 1945.

Current laws: 1998 (funeral grant), implemented in 1999; 2003 (child allowances), implemented in 2004; 2005 (family and child care); 2009 (parental allowance); and 2013 (birth allowance).

Type of program: Universal system.

Coverage

Residents of the Slovak Republic.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Child allowance: Paid for a child up to age 16 (age 18 for a child with chronic health problems, age 25 if a full-time student or disabled).

Parental allowance: Paid for the care of at least one child up to age three (age six with chronic health problems). The child must not attend a nursery school. A parent must not receive the maternity benefit.

Birth allowance: Paid for the birth of a child who lives at least 28 days.

Multiple birth allowance: Paid to parents on the birth of triplets or more children or the birth of two sets of twins in a two-year period.

Funeral grant: Paid to the person who paid for the funeral.

Family Allowance Benefits

Child allowance: €23.52 a month is paid for each child.

Parental allowance: €203.20 a month is paid.

Birth allowance: A lump sum of €829.86 is paid for the birth of the first, second, and third child (€151.37 for the fourth and each additional child); for multiple births of three or more (or two sets of twins in a two-year period) the lump sum is increased by 50% for each child.

Multiple birth allowance: €110.36 a year is paid.

Funeral grant: A lump sum of €79.67 is paid.

Administrative Organization

Central Office of Labor, Social Affairs and Family (http://www.upsvar.sk) administers the program.

Ministry of Labor, Social Affairs, and Family (http://www.employment.gov.sk) provides supervision.