Third Consolidation Package: Authorities Introduce New Taxes and Increase Contributions for Self-Employed

19.10.2025

The National Council of Slovakia has approved the third consolidation package, aimed at saving budget funds amounting to 2.7 billion euros. The decision was made on the evening of 24 September in the second and third readings.

The initiative of the Ministry of Finance was supported exclusively by deputies of the ruling coalition: 78 parliamentarians voted “for”, one abstained. The opposition refused to participate in the vote and left the hall before it began.

Parliament approved only the first part of the consolidation package. It includes measures that should bring the budget over 1.4 billion euros. The second part with additional initiatives aimed at saving another 1.3 billion euros has not yet been presented. Its consideration is expected after the approval of the 2026 budget project, scheduled for the first half of October.

Adjustment of Public Holidays

One of the notable changes was the revision of the list of public holidays. Initially, it was assumed that from 2026 the holiday on 6 January (Epiphany — Three Kings Day) would be cancelled. However, in the final version, the government left this day as a holiday, replacing it with 15 September — the Day of Our Lady of Sorrows.

Additionally, in 2026 the holiday on 8 May (Liberation Day from Fascism) will be excluded. However, both of these holidays will return to the calendar in full from 2027.

The status of the Day of the Struggle for Freedom and Democracy (17 November) will change permanently. The holiday itself remains, but from 2025 it will no longer be a non-working day.

Trading on Holidays

From 2026, the ban on trading on most holidays in Slovakia will be lifted. Restrictions will remain only for 1 January, Good Friday and Easter Sunday, as well as 25 and 26 December. On Christmas Eve, 24 December, shops will be able to operate until noon.

Tax Changes and Income Reduction

The most controversial provisions of the consolidation package concern taxation and mandatory contributions. These measures will lead to a reduction in income for most working residents of the country.

Firstly, from 2026 the tax-free portion of the tax base will be reduced: from the current 92.8 to 91.8 of the subsistence minimum. Currently, this corresponds to 26,083.13 euros.

Secondly, from January 2026, employees’ health insurance contributions will increase: from 4% to 5% of salary. Employers will maintain the current contribution level — 11%.

Practical Effect

Even with low incomes, workers will feel a reduction in net payments. For example, with a minimum salary of 915 euros gross (this will be the minimum wage in 2026), a worker will receive “in hand” 732.94 euros. This is 4 euros less than under the current rules.

With higher salaries, the difference increases:

with an income of 1,600 euros, the monthly loss will be about 9 euros,
with an income of 2,200 euros — about 14 euros.

Overall, the tax changes will affect approximately 357,000 taxpayers and bring the budget an additional 206 million euros.

New Progressive Scale

At the same time, the progressive nature of personal income taxation is being strengthened. The new income tax rates will be as follows:

income up to 44,000 euros per year — 19% (unchanged);
income from 44,000 to 60,000 euros — 25%;
income from 60,000 to 75,000 euros — 30%;
income over 75,000 euros — 35%.

For deputies and senior government officials, an increase in rates by another 10 percentage points is provided. Thus, the maximum tax rate for them will be 45%.

Self-Employed and Entrepreneurs

Significant changes will affect individual entrepreneurs (živnostníci) and other self-employed persons (SZČO).

Until now, the obligation to pay social contributions arose only after the submission of the first tax return and provided that the income exceeded the established threshold (in 2025 — 9,144 euros). From 2026, this mechanism will change:

the income threshold benefit is completely abolished;
the self-employed will be required to make insurance payments regardless of the income amount;
the minimum amount of social contributions will be 131.34 euros per month.

In January 2026, the rules will change again. They will already concern the self-employed with an income of more than 9,144 euros per year. The amount of payments for them will be recalculated due to an increase in the minimum base for calculating social payments — it will increase from 50% to 60% of the average salary in the country (1,524 euros). In practice, this means that the minimum contribution to the social insurance system for this group will be 303.11 euros per month — 66 euros more than in 2025.

Contributions to the health insurance system will also increase: the rate will rise from 15% to 16%. This means that the minimum contributions will be 121.92 euros per month (15 euros more than now).

Additional Taxes for Politicians and Officials

From 2026, Slovakia will increase the special income tax for so-called constitutional officials — these include deputies, ministers, judges, and senior government officials. Today the rate is 5%, but from January it will be doubled.

Impact on Deputies’ Salaries

The changes will most affect the deputies of the National Council:

their salaries will be frozen for two years,
annual indexation depending on the average salary in the country will temporarily not be applied.

As a result, each deputy will lose about 220.7 euros per month — that is, about 2,650 euros per year.

Judges and Officials

For judges and court assessors, an amendment has been adopted providing for the payment of an extraordinary reward in the amount of a monthly salary on the occasion of professional anniversaries.

As for the salaries of officials and municipal employees, they are also frozen: there will be no increase in 2026. The only exceptions will be doctors, nurses, and teachers — their salaries will be increased in accordance with previously adopted parliamentary decisions.

Pensions and Social Benefits

13th Pension will remain unchanged and will be frozen for three years at the level of 667.3 euros.
Sick Leave: the payment period covered by the employer will be increased from 10 to 14 days.
Unemployment Benefits will be reduced. Currently, the system of their payments is as follows — the unemployed receive an amount equal to 50% of their average income for the previous two years for six months.

Starting from January 2026, payments of 50% will be made only in the first, second, and third months after job loss. In the fourth month, the payment amount will be reduced to 40%, in the fifth — to 30%, and in the sixth — to 20%.

Taxes and Fees

VAT on Cars: entrepreneurs will be able to deduct VAT when purchasing, repairing, or servicing a car only if it is used exclusively for business. If the car is used for personal purposes as well, the deduction will be reduced from the current 80% to 50%.
VAT on Products with High Sugar and Salt Content (chocolate, cakes, etc.) will increase from 19% to 23%.
Construction Levy: a fee for the use of primary construction materials is introduced at 1.35 euros per tonne.
Tax on Online Casinos will increase from 27% to 30%.

Why Consolidation is Needed

Finance Minister Ladislav Kamenický stated that within the framework of the third consolidation package, the coalition is discussing a package of 68 measures that should save or bring the budget about 3 billion euros. At the same time, he himself said that he initially proposed an even larger package consisting of 75 points with an estimated effect of 3.5 billion euros. However, some of the measures he proposed were rejected by coalition partners.

The first two packages for the consolidation of state finances were adopted in 2023 and 2024. The first package was supposed to bring the state budget an additional 1.5 billion euros. Among other things, it included a reduction in contributions to the second pension level, an increase in medical contribution rates, and an increase in the cost of various state fees and services.

The second package contained much stricter measures, the effect of which is estimated at about 2.7 billion euros. The main one was the increase in the basic VAT rate to 23%, which has already led to an increase in prices for most goods and services in the country since January 2025. In addition, taxes on bank transactions and cash withdrawals were introduced, the size of tax bonuses for families with children was reduced, and the prices of road vignettes were increased.

The size of Slovakia’s state budget deficit has exceeded 6 billion euros for two consecutive years. According to the Ministry of Finance, as of the end of December 2024, the deficit amounted to 6.37 billion euros — this is more than 6% of the gross domestic product (GDP). The authorities assume that thanks to consolidation measures, the deficit by the end of 2027 will approach the target of 3%.

At the same time, analysts from the National Bank of Slovakia (NBS) note that the consolidation of state budget funds negatively affects economic development. A similar assessment was given in a recent report by the Ministry of Finance. According to its forecast, by the end of 2025, the state budget deficit will already grow to 7.1 billion euros, which will be 5.2% of GDP.