Slovakia Increases Tax Deduction for Contract Workers to €300 from 2027

The Slovak Social Insurance Agency announced that the deductible contribution (odvodová úľava) will rise from €200 to €300 per month beginning 1 January 2027. The increase applies to employees working under civil contracts – including students, retirees and others – and now also covers those who take on contract work while on maternity, paternity or parental leave.

Employers and workers will not face new obligations; the deduction reduces only the pension‑insurance base, while the bases for accident and guarantee insurance remain unchanged. A worker can claim the deduction on only one contract per month, must inform the employer in writing, and the employer must report the claim to the Social Insurance Agency.

The change aims to provide additional financial relief to contract workers without altering contribution rates for other insurance funds.