Starting in July, the living minimum wage in Slovakia will rise, triggering adjustments to various social benefits, the parental allowance, and other key financial thresholds. The increase is based on the rise in living costs for low-income households between April 2024 and April 2025. The rate will grow by 3.7 percent—almost double last year’s 1.9 percent—raising the basic living minimum wage for an adult by about 10 euros to €284.14.
This change will lead to increases in multiple state allowances—some beginning in July, others in January next year—including the parental allowance and the minimum threshold for early retirement pensions. It will also impact net employee income and the taxes paid by entrepreneurs, as the non-taxable part of the tax base is tied to the living minimum wage. Furthermore, the living minimum wage defines the income thresholds for claiming full tax relief and determines when the higher 25% personal income tax rate applies. It also plays a role in deciding when a tax return must be filed.
The parental allowance is a state benefit paid by labor offices to parents of children up to age three, or up to age six if the child has a long-term adverse health condition, as assessed by a doctor. If a child is not accepted into the local kindergarten due to full capacity, the benefit may also be extended to six years of age. The allowance is not income-based but depends on whether the mother previously received maternity benefits. If she did, the allowance is higher and will rise by about €20 in January, surpassing €500—specifically €500.10 per child. If maternity benefits were not received, the parent will get €364.80.
The higher living minimum wage may also complicate mortgage approval. Banks calculate eligibility by subtracting the living minimum wage for each household member and the future monthly loan payment from the applicant’s net income. What remains must meet the mandatory financial reserve—at least 40% of the net income.
Source: Dennik N
