Background information

Heavy rains between 4 and 6 August 2023 caused devastating floods that claimed several lives, destroyed homes, and swept away roads and infrastructure. Floods and landslides made many sites unreachable, and settlements cut off from access to water, gas and electricity. Half of Slovenian municipalities (or 17,203 square kilometres) were severely hit, particularly the Gorenjska, Štajerska, and Koroška regions. The government’s quick response was aimed at helping people with temporary accommodations, repairing the damage, and keeping people employed. The Act Determining Intervention Measures for Recovery from the Floods and Landslides of August 2023 (ZIUOPZP, issued on 1 September 2023) stipulates the solidarity contribution for recovery from income and corporate taxpayers, as well as a working Sunday in 2023 and 2024.

Content of measure

The Act Determining Intervention Measures for Recovery from the Floods and Landslides of August 2023 (ZIUOPZP, Articles 101 and 102) mandated a solidarity contribution from income and corporate taxpayers for 2023 and 2024. The Slovenian Fund for Recovery will gather solidarity payments for flood reconstruction, as well as other state and European money.

Solidarity contributions are required for income taxpayers earning more than 35% of the average wage in 2023 or 2024, corporate taxpayers, farmers, and self-employed individuals. The contribution of legal persons is at the 0.8% income tax rate before loss relief and deductions. Physical persons contribute at a rate of 0.3% of gross income without revenues, exempt from income (but not performance incentives).

Alternatively, employers and employees may opt to reduce their contributions by working two Sundays (one in 2023, the other in 2024). Employees and employers must agree to work two days in excess of the standard working hours. In this case, the employee's contribution is one day’s salary for the work performed on Saturday after taxes and compulsory social security contributions. The employer's contribution is equivalent to the worker's contribution.

Use of measure

The mandatory solidarity contribution is under question. Preparing new draft amendments, the Government proposed the abolition of the solidarity contribution and its partial compensation by an increase in corporate income tax.

Target groups

Workers	Businesses	Citizens
Applies to all workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	Employees Employer

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: N/A

Involvement

Employers’ organisations, members of the Economic and Social Council (Chamber of Commerce and Industry of Slovenia – GZS, Slovenian Chamber of Commerce – TZS, Chamber of Craft and Small Business of Slovenia – OZS, Association of Employers Slovenia – ZDS, Association of Employers in Craft and Small Business of Slovenia – ZDOPS) have blocked negotiations since 20 July 2023. The emergency law was thus prepared without prior negotiation with the social partners

Views and reactions

No information available.

Sources

• 20 July 2023: Chamber of Commerce and Industry of Slovenia – GZS, Slovenian Chamber of Commerce – TZS, Chamber of Craft and Small Business of Slovenia – OZS, Association of Employers Slovenia – ZDS, Association of Employers in Craft and Small Business of Slovenia – ZDOPS, Letter to the Prime Minister Robert Golob and the president of the ESS Jakob Počivalše (www.ess.si)
• 01 September 2023: Act Determining Intervention Measures for Recovery from the Floods and Landslides of August 2023 (Zakon o interventnih ukrepih za odpravo posledic poplav in zemeljskih plazov iz avgusta 2023, ZIUOPZP (www.pisrs.si)