Should Students Work in Slovakia?

Are you a student wondering whether it is worth working while you study? In this article we look at how much you will pay in taxes and levies and whether it is worth it.

Of course, higher education in Slovakia has many advantages. You get an ISIC card (student card), which gives you discounts on clothes, cosmetics, public transport and various attractions. You study free of charge in the full-time form and you live in a hall of residence provided for you or in a rented flat. Similar advantages apply to taxes and levies when you decide to work while studying — which, incidentally, we recommend.

Not every student is the same

First of all we need to be clear about what “student” means. In this article we mean students who are 17 or 18 and over and are continuing their studies. In the case of minors who are still pupils, are already 15 and have completed compulsory schooling, employment is legally somewhat more complicated.

As a student you essentially have almost the same options as a graduate. An employer can hire you on a permanent employment contract or on a work activity agreement (dohoda o pracovnej činnosti). In addition, students can be hired on a student work agreement.

The first two types of employment are rarely used for students, purely because of taxes and levies. The employer has to pay taxes and levies totalling 35.2% of the cost of the work, and you as a student 13.4% — and that is before we mention the 19% advance payments on income tax. If you were employed in a permanent job as a student, then out of a total labour cost of 676 euros, which is 500 euros in gross earnings, you would be left with 420.62 euros. On top of that, the employer would have to give you leave or provide meals and the other benefits that normally come with permanent employment.

A similar tax and levy burden also applies to the work activity agreement. The difference is that the work may be performed for a maximum of 10 hours a week and 350 hours a year in total. With regular income, the employer and the employee pay the same percentage of the cost of the work as in permanent employment. With irregular income the employer pays 32.8% and the employee 11%. This is because the employer and employee do not pay 1.4% for health insurance and 1% for unemployment insurance. Here too, of course, you need to allow for the 19% advance payment of income tax.

The student part-time work agreement is the most advantageous (Dohoda o brigádnickej práci)

The most advantageous option for both student and employer is the student part-time work agreement. A student can work under this type of agreement up to the age of 26 while studying. On average they may work no more than 20 hours a week. The advantage is that a student can claim an exemption from contributions on up to 200 euros. In practice this means they pay only 7% of the amount above 200 euros, towards pension insurance. It is also advantageous for the employer if the remuneration is under 200 euros. In that case the employer pays just 1.05% of the remuneration in contributions (0.25% guarantee insurance and 0.8% accident insurance). No health insurance contributions are charged on a student work agreement, because the state pays them for students. Above the 200-euro threshold, the employer has to pay total contributions of 22.8%. With a net salary of 457 euros on a gross salary of 500 euros, the total cost of the work comes to 570.50 euros.

For doctoral students the situation is slightly more specific. They receive money in the form of a scholarship while studying and teaching. That scholarship is entirely clean, meaning no social or health contributions and no tax are deducted from it. As with other students, health insurance is paid by the state. The drawback is that if they want to work, they can only do so up to the age of 26 on a student part-time work agreement (dohodu o brigádnickej práci), because of the age limit. This means they can only work on a contract or a permanent workload (trvalý pracovný úväzok). The same often applies to other benefits with a 26-year age limit, which is a disadvantage for doctoral students.

Official deadlines and rules are published by the Slovak Ministry of Education: rules on compulsory school attendance and how to enrol a child in the first year of school.

Students are not entitled to benefits from the social system

Another question is running a business. For example, if a student — whether at the first, second or third level of study — sets up their own company, they will operate in the standard way like any other entrepreneur, except that they do not pay health insurance contributions, since these are paid by the state for students. This means the minimum contributions do not apply to students. In practice they will only start paying contributions from the third year of business activity, since in the year the company is founded and in the following year they are not required to pay the minimum contributions. In the third year the contributions will be calculated on the basis of the tax return from two years earlier.

Similarly, while studying at a higher education institution, whatever the level of study, a student is not entitled to any benefits from the social insurance agency. Simply because they are not socially insured during their studies. This means female students will not receive any maternity benefit, only the parental allowance. And in general students are not entitled to sick pay or unemployment benefit. In addition, the period of study does not count towards the pension calculation. The exception is where students work or pay voluntary insurance.

We hope this article has been useful. For the latest news on life in Slovakia, tourism, healthcare and documents, follow our page: pomosh.sk