Thirteenth and fourteenth salary

What it means

The thirteenth salary is an extra payment some employers make to employees once a year, usually before the summer holidays, just as a fourteenth salary may be paid before Christmas. In Slovakia the law does not require employers to pay it; it is a voluntary part of pay.

Employees are entitled to it only if it is provided for in the employment contract, a pay policy or a collective agreement. It then becomes a contractual component of pay, and the employer must pay it if the employee meets the agreed conditions.

The thirteenth salary is part of gross pay and is taxed and subject to contributions like wages in the month it is paid. In the past the law allowed partial relief on it under certain conditions, so we always check the current rules before payment.

How it works in practice

With clients introducing a thirteenth salary, we define the conditions: who is entitled, how long the employee must have worked, whether it is reduced pro rata for joiners and leavers, and how the amount is calculated. Clear rules prevent disputes and claims by former employees.

In the accounts, a thirteenth salary relating to the current year but paid the following year is recognised as a provision or accrual, so that the expense belongs to the period the payment rewards.

For larger amounts we watch the maximum assessment base. Paying it in a single month can push part of it above the social insurance cap, which affects both employee and employer contributions.

What to watch out for

If an employer has paid a thirteenth salary regularly for years without a written basis, the question may arise whether it has become an entitlement. If the company wants it to stay voluntary, we recommend stating so expressly with each payment.

Equal treatment applies when deciding who is entitled. Excluding certain groups, such as employees on maternity leave or part-time, must have an objective reason, otherwise it is discrimination.