15th ANNUAL REPORT OF THE REPUBLIC OF SLOVENIA

ON THE APPLICATION

            OF THE EUROPEAN CODE OF SOCIAL SECURITY

GENERAL REPORT

REFERENCE PERIOD: 1 July 2019 to 30 June 2020


I.              GENERAL

A.         ADMINISTRATION / ORGANISATION

a)     Changes made during the reference period

b)    Changes decided on, planned or proposed for the following year:

c)     Research (including evaluations), completed or initiated:

B.         BENEFITS

a)     Changes made during the reference period:

b)    Changes decided on, planned or proposed for the following year

c)     Research (including evaluations), completed or initiated


II.            MEDICAL CARE

a)     Changes made during the reference period: /

b)    Changes decided on, planned or proposed for the following year:

Changes of the key act regulating the field of health care and health insurance are planned to be prepared, therefore it is not yet possible to introduce the content of the proposal.

c)     Research (including evaluations), completed or initiated: /

III.           SICKNESS BENEFIT

a)     Changes made during the reference period: /

b)    Changes decided on, planned or proposed for the following year:

Changes of the key act regulating the field of health care and health insurance are planned to be prepared, therefore it is not yet possible to introduce the content of the proposal.

c)     Research (including evaluations), completed or initiated: /

IV.           UNEMPLOYMENT BENEFIT

a)     Changes made during the reference period:

Legislative changes that were described as planned in the previous report, were adopted. The Act amending the Labour Market Regulation Act (ZUTD-E) is valid from December 2019.

The proposed amendments aim at faster activation of the working population, prolonging the employment activity of older workers, restriction of precarious employment and providing a higher level of social security to recipients of unemployment benefits.

The main amendments include increase of the minimum amount of unemployment benefit from 350 EUR to 530,19 EUR, an increase of the minimum period of insurance for the entitlement to the unemployment benefit (from 9 to 10 months in the period of 24 months), change in the conditions of the required age and insurance period in determining the duration of the unemployment benefit for older persons (19 months of entitlement is possible for older than 53 years, which is an increase from previous 50 years with the unchanged insurance   period of 25 years, as well as the provision of  25 months entitlement for older than 58 with insurance period of 28 years where both conditions increased for 3 years)  and the introduction of a special measure aimed at activation and integration of foreign unemployed persons without basic knowledge of Slovenian language into the Slovenian labour market (language course at basic level is available and obligatory for third country unemployed, starting their active job-search from April 2020 onwards).

The changes also encompass the area of ​​temporary and occasional work for retired people, where 90 working hours per month is now allowed (previously 60 hours) and some other limitations were abolished and instead a maximum of 3 months work per year and upper limit of 720 hours per year was introduced.

Temporary unemployment benefit as intervention COVID-19 measure was also introduced end of April 2020. This measure relates to wider Government package of COVID-19 mitigation measures and is not part of Labour Market Regulation Act. It is applicable for persons that became unemployed in the time of coronavirus epidemic (13 March till end May 2020) and are not eligible for the unemployment benefit according to the conditions under the respective stipulations of the Act on Labour Marker Regulation. The measure is relevant for those whose employment was terminated either due to so-called business reasons (economical, organisational, technological…) or their employment contract has expired (temporary employment).

The amount of temporary unemployment benefit is set at 513,64 EUR.  

b)    Changes decided on, planned or proposed for the following year: /

c)     Research (including evaluations), completed or initiated:

Slovenia participates in EU Structural Reform Support Programme 2019 with the project »Labour market integration of the long-term unemployed persons and those not in education, employment or training". Its aim is to research the possibilities of additional support for long term unemployed to return to labour market, including in area of profiling and contracted-out services. In terms of NEET youth, an analysis is ongoing, aiming at better facilitation of outreach activities. Due to COVID-19, some project activities concerning long term unemployed have been adjusted, while NEET strand of the project will be carried out according to original plan.

V.            OLD AGE BENEFITS

a)     Changes made during the reference period:

At the end of year 2019, amendments to the Pension and Disability Insurance Act were adopted. The Act entered into force on 1 January 2020. Legislative changes pursue two basic goals:

-          the extension of employment and

-          the provision of an adequate income for a safe age or the improvement of the social position of all beneficiaries of compulsory pension and disability insurance.

Key amendments to the legislation:

·         Higher accrual rate for 40 years of pension period for both sexes:

The old-age pension is assessed from the pension base in a percentage depending on the length of the pension period. For 15 years of insurance period, it is assessed in the amount of 29.5% of the base. For each subsequent year, however, 1.36% is added, with no upper limit. For a 40-year completed pension period, the pension is set at 63.5% for both sexes. For men, there is a six-year transitional period of increase of the assessment for 40 years of pension period from the previous 57.25% to 63.5%.

·         Determination of additional accrual rate for child care:

An insured person (male or female) who cared for a child (born or adopted) in the first year of his or her life may receive an additional accrual rate of 1.36% per child (for a maximum of three children) when claiming a pension. The upper limit of the additional accrual rate is thus 4.08%.

·         Higher accrual rate in the case of assessment of disability pension in case of disability due to injury at work or occupational disease:

The assessment has so far been considered to be set in the amount of the assessment percentage that applies to a man with 40 years of pensionable service, which means that it has risen from the current 57.25% to 63.5%.

·         New minimum assessment of disability pension for insured persons who became disabled before reaching the age of 65:

The invalidity pension for these insured persons is at least 41% of the pension base, for both sexes. (Before: 36% for men and 39% for women.)

·         Widow’s and survivor’s pension:

The lowest basis for the assessment of a widow’s or survivor’s penison is a pension assessed at least in the amount of 38% of the pension base (before: 33%).

·         Ugodnejše vrednotenje let po izpolnitvi pogojev za upokojitev:

Na novo je določeno ugodnejše vrednotenje v višini 3% na leto za največ 3 dodatna leta zavarovanja za tiste posameznike, ki so že izpolnili pogoje za starostno upokojitev (60 let starosti in 40 let pokojninske dobe brez dokupa).

·         More favourable valuation of years after meeting the conditions for retirement:

A more favourable valuation of 3% per year has been set for a maximum of 3 additional years of insurance for those individuals who have already met the conditions for old-age retirement (60 years of age and 40 years of pensionable service without purchased periods).

·         Dual status - upgrade of possibilities to combine pension with income from work:

Insured persons who have fulfilled the conditions for an old-age pension (60 years of age and 40 years of pensionable service without purchased periods) are entitled to the payment of 40% of the old-age pension to which they would be entitled on the day of fulfilment of the conditions for the first three years of further inclusion in compulsory full-time insurance. At the end of this period, if they remain in compulsory full-time insurance, they are entitled to a 20% old-age pension.

b)    Changes decided on, planned or proposed for the following year: /

c)     Research (including evaluations), completed or initiated: /

d)    Rates of payment during the reference period (Art. 65, p.10):

Adjustment of benefits:

Pension were adjusted by 1,5% in December 2019 and by 3,2% in January 2020. The minimum pension rating basis thus amounts 894,88 EUR and the maximum pension rating basis is equal to 3.579,52 EUR. The guaranteed pension for 40 years of service if the prescribed conditions are fulfilled amounts 555,76 EUR.

In 2019 yearly bonus was paid out on the basis of Article 69.a of the Amendments to the Republic of Slovenia Budget Implementation Act for 2018 and 2019 (Official Gazette of the RS, No. 71/2017, ZIPRS1819-A). Yearly bonus was paid to 648.316 beneficiaries in five different rates. Beneficiaries of prorate pensions (on basis of EU social security coordination rules or bilateral social security agreements) were entitled to a proportionate part of a yearly bonus. In 2019 yearly bonus was received by 0.4% (2.824) more persons than in 2018.

The amount depends on the amount of the pension and is determined in five different rates. In 2019 the amounts of yearly bonus were 27 EUR higher compared to previous year.

Amount of the pension in EUR

Amount of the yearly bonus in EUR for 2019

up to 470,00

437,00

from 470,01 to 570,00

297,00

from 570,01 to 670,00

237,00

from 670,01 to 810,00

187,00

above 810,00

127,00

VI.           WORK ACCIDENT AND OCCUPATIONAL DISEASE BENEFIT

a)     Changes made during the reference period:  /

b)    Changes decided on, planned or proposed for the following year: /

c)     Research (including evaluations), completed or initiated: /

d)    Rates of payment during the reference period (Art. 65, p. 10):

Adjustment of benefits: See old age benefits

VII.         FAMILY BENEFIT

a)     Changes made during the reference period:

The condition of permanent residence for parental benefit, child birth allowance, large family allowance, special childcare allowance and partial payment for loss income will be changed to temporary residence.

b)    Changes decided on, planned or proposed for the following year:

Parental allowance will be at least the amount of guaranteed minimum income (from 1.1.2021).

The childbirth grant shall amount to EUR 350 (from 1.1.2021).

c)     Research (including evaluations), completed or initiated: /

VIII.        MATERNITY BENEFIT

a)     Changes made during the reference period:

Fathers of twins, triplets… are entitled to additional 10 days of paternity leave for each additional child. Foster parents are entitled to 30 days of parental leave, when the child, who has not finished the first grade of elementary school, is placed in the family.

On the basis of a certificate issued by a paediatrician, a mother who works full-time shall be entitled to financial compensation for the duration of a breastfeeding break of one hour per day until the child is 18 months old. The basis for the compensation shall be the average basis from which the parental protection contributions were calculated in 12 consecutive months, whereby the last month shall be deemed to be the basis from which the contributions were calculated in the month before the month the application for leave was filed.

b)    Changes decided on, planned or proposed for the following year:

Maternity/paternity/parental benefit will be at least the amount of guaranteed minimum income (from 1.1.2021).

c)     Research (including evaluations), completed or initiated: /

IX.           INVALIDITY BENEFIT

a)     Changes made during the reference period: /

b)    Changes decided on, planned or proposed for the following year: /

c)     Research (including evaluations), completed or initiated: /

d)    Rates of payment during the reference period(Art. 65, p. 10):

Till end of July 2019 – 577,34 EUR/person/month, from August 2019 590,21 EUR/person/month, aprox. 60.000.000,00 EUR/year

X.            SURVIVORS’ BENEFIT

  1. Changes made during the reference period: /

  1. Changes decided on, planned or proposed for the following year: /

  1. Research (including evaluations), completed or initiated: /

d.    Rates of payment during the reference period(Art. 65, p. 10):

Ajustment of benefits: See old age benefits

XI.   FINANCING

a)     Changes made during the reference period:

In April 2018 the Social Assistance Payments Act (Uradni list RS, št. 61/10, 40/11, 14/13, 99/13, 90/15 in 88/16, 31/18) was further amended. The Act Amending the Social Assistance Payments Act (Uradni list RS, št. 73/18) has set the new amount of the basic minimum income (BMI) based on the new estimates of the minimum costs of living as required by the Article 8 of the Act in force. The basic minimum income was set at 392,75 EUR from the 1st August 2018. In August 2018 (outside the reference period) it has been regularly adjusted to the growth of consumer prices and reached 392,75 EUR. Due to the indexation the BMI increased from August 1st 2019 to EUR 402,18 .

The minimum income is the basis for determining the amount of the financial social assistance payments to a beneficiary under certain conditions. The weights and the amounts are as follows:

Household member

Weight  for BMI

Amount of payment

(in EUR)

Financial social assistance (denarna socialna pomoč) -FSA

Single person (inactive)

1

402,18

Single person (active from 60 to 128 hours per month)

1+0.26

506,75

Single person (active  more than 128 hours per month)

1+0.51

607,29

Single person (age of 63 (W) or 65 (M) and/or permanently unemployable or/and permanently incapable of work living in a household  in which other members have sufficient means for living)

0.76

305,65

Subsequent adult

0.57

229,24

Subsequent adult (active from 60 to 128 hours per month)

0.57+0.13

281,53

Subsequent adult (active  more than 128 hours per month)

0.57+0.26

333,81

Child

0.59

237,29

Child in the single-parent family

0.59 + 0.18

309,68

Income supplement (varstveni dodatek) - IS

Single person in the family under certain conditions

0.47

189,02

Adult person in the family under certain conditions

0.25

100,55

b)    Changes decided on, planned or proposed for the following year: /

c)     Research (including evaluations), completed or initiated: /