Slovakia Plans to Exempt Low-Earning Freelancers from New Micro-Contribution System

Slovakia's Labor Ministry announced plans to modify the recently introduced micro-contribution system by exempting small business owners and self-employed individuals who earn less than 2,876.90 euros annually. Labor Minister Erik Tomáš said the change would affect approximately 30,000 small entrepreneurs and self-employed persons who would no longer be required to pay the new micro-contribution. The proposal is expected to be debated by lawmakers during parliament's April session. The micro-contribution system was introduced as part of Slovakia's broader tax and social insurance reforms, requiring self-employed individuals to make minimum contributions to the social security system regardless of their actual income levels. However, the new threshold would not benefit authors and other creative professionals whose income is subject to a 19 percent withholding tax, as they fall under different tax regulations.