Higher living minimum to bring modest tax savings for many workers

Slovakia will raise its living minimum by 3.9 percent from July, with related tax changes taking effect in 2027.

Slovakia’s living minimum will rise by 3.9 percent from 1 July, increasing from €284.13 to €295.22 a month, the Labour Ministry has announced.

The adjustment reflects higher living costs for low-income households, according to the Statistics Office.

The living minimum is a statutory benchmark used to calculate some social benefits, personal tax allowances and income tax thresholds. While the increase takes effect in July, the related tax changes will apply from January 2027 and will affect both employees and self-employed workers, SME reports.

Many self-employed workers with annual business revenue of up to €100,000 qualify for a reduced 15-percent income tax rate. However, the higher living minimum will still affect their personal tax allowances and some tax thresholds.