Few Businesses Will Pay Advantaged 13th and 14th Salary

Bratislava, October 20 (TASR) - There is not much interest in paying advantaged 13th and 14th salaries, either entrepreneurs can't afford it or have a problem meeting the conditions set in the law, ensues from an exclusive survey conducted for TASR by CSOB bank. From May 1 of this year, the Labour Code allows employers to pay on a voluntary basis the 13th (holiday) and the 14th (Christmas) salary that are advantaged in terms of taxes. The salaries will be gradually exempt from taxes and levies up to the amount of €500. The condition, however, is that they will have to be at least at the level of the average monthly earnings of an employee. This legislative novelty was prepared by the governing Slovak National Party (SNS). The survey among 304 companies showed that nearly 62 percent of entrepreneurs won't use the opportunity to pay the 13th and 14th salary to their employees. This option is used or is planned to be used by 22.2 percent of companies, others don't know yet. "The most common reason for not using this option is the company's financial situation and the impossibility to meet the conditions for exempting the salary from taxes and levies as defined by the law," reads the survey. According to experts, the main reason why companies are not interested in these 13th and 14th salaries is a bad setting of conditions. "The exemption of the amount of €500 from the tax burden will come only from 2019, zero social levies from the 13th and 14th salary will be possible only from 2021. Thus, the financial relief for employers is now, according to the Labour Code, absolutely minimal. Firms will save a maximum of €16.20 on health care insurance from the amount of €500," said Grant Thornton tax partner Silvia Hallova. am