Slovenia’s Financial Administration has clarified tax exemptions for annual holiday allowances across multiple employment contracts and confirmed reporting rules when employment circumstances change after payment.
Slovenia’s Financial Administration (FURS) has provided detailed guidance on the tax treatment and social security contribution rules for annual holiday allowances (regres za letni dopust) on 12 October 2026.
This framework clarifies how tax-exempt thresholds are determined across full-time, part-time, and multi-employer employment contracts, as well as reporting obligations when employment conditions change post-payment.
The main measures are as follows:
General rule and tax-exempt threshold
Holiday allowances granted as an employment right under labour legislation are exempt from personal income tax and social security contributions up to 100% of the latest known average monthly gross salary in Slovenia (PP) published by SURS.
Any portion of the holiday allowance paid above 100% of the PP is included in the employee’s income tax base and subject to social security contributions.
To qualify for favourable tax treatment, the allowance must be determined as a labour right and paid by 1 July of the current calendar year (or by November 1 in cases of employer illiquidity allowed under a sector-level collective agreement).
Treatment for multiple employers & supplementary work
In Slovenia, holiday allowance entitlements and tax-exempt limits are assessed separately for each employment contract, based on the working hours specified in each agreement. When an employee works part-time for multiple employers, each employer calculates the allowance and tax-free threshold proportionally to the contracted hours.
The same rules apply to supplementary work under Article 147 of the Employment Relationships Act (ZDR-1), including supplementary contracts with the same employer. Under Article 127(14) of the Personal Income Tax Act (ZDoh-2), employees receiving allowances from multiple employers may ask an employer not to apply the tax exemption to help avoid tax underpayments if their combined annual allowances exceed the applicable limit.
Subsequent changes in circumstances post-payment
Slovenia’s guidance confirms that employers do not need to amend REK-O or iREK forms or change the tax treatment of holiday allowances if the conditions for tax exemption were met when payment was made. This remains the case if the employee later switches to part-time work, leaves the job without repaying the excess allowance or dies after receiving the payment.
The rules do not provide a legal basis for retrospectively reducing the 100% tax-free threshold once it has been validly applied at the payment date.
