SLOVENIA Trends and Developments Contributed by: Jernej Jeraj and Eva Bardutzky, PFP Law
The law provides the possibility of issuing a tempo - rary residence permit to digital nomads for a period of up to one year, with no option for extension. This limitation reflects the nature of digital nomads’ activ - ity, as they typically stay in a given country only for a short period and therefore do not require longer-term permits. Applications for residence permits may be submitted from 21 November 2025 onwards. Permanent Short-Time Work Scheme As of 12 July 2025, the Act on Partial Reimbursement of Wage Compensation for Short-Time Work has entered into force, introducing a so-called permanent short-time work scheme as a long-term measure to support companies during times of economic crisis. This system marks a significant shift away from the previous ad hoc approach to crisis management, which characterised the response during the 2009- 2012 economic recession and the Covid-19 pandem - ic. The legislation was also prompted by the antici - pated crisis in the automotive sector (as the Slovenian automotive sector is heavily linked to the German automotive sector). The new regulation allows employers who, for busi - ness-related reasons, are unable to provide at least 90% of working hours to at least 30% of their employ - ees to reduce working hours for those employees by 5-20 hours per week. At the same time, they may claim a subsidy of up to 60% of the gross wage com - pensation for the unworked hours. The amount of the reimbursement must not exceed 50% of the last pub - lished average gross salary in Slovenia. The aid is granted solely in respect of employees engaged on a full-time basis. Eligible employers must not be subject to bankruptcy or liquidation proceed - ings and must have no outstanding tax obligations. The subsidy is also provided in cases of natural or other disasters, or other critical conditions, acti - vated through protection and rescue plans, as well as in cases of temporary situations identified by the government in specific sectors where circumstances have arisen that employers could not have reason - ably influenced or prevented, and which have caused a temporary negative impact on the scope of their
business operations, resulting in their temporary ina - bility to provide sufficient work for their employees. In addition to financial support, the legislation also incorporates elements of active employment policy by requiring employees on reduced hours to participate in additional training and education. It is important to note that any employer receiving the described subsidy is prohibited from paying out profits, bonuses, or other forms of profit participa - tion within one year of receiving a favourable deci - sion. Failure to comply will result in an obligation to return the full amount of the subsidy to the state. If such payouts occur in the second or third year, the law provides for a partial reimbursement of up to 50% of the received aid. Older Workers Like many European countries, Slovenia is facing a pronounced ageing of the population, which places increasing pressure on the pension system, the labour market, and the entire social welfare system. In light of these challenges and in anticipation of an amend - ment to the Pension and Disability Insurance Act, which foresees a gradual increase in the retirement age, it has become necessary to introduce measures to support longer labour market participation of older individuals. In response, an amendment to the Labour Market Regulation Act was adopted, aligning with ILO Con - vention No. 162 on the promotion of employment for older workers and also amending the Employ - ment Relationships Act. With this step, the legislator acknowledges that traditional forms of full-time work no longer (fully) correspond to the functional capaci - ties of older workers and introduces the possibility of more flexible working arrangements. Under the new regulation, an employee who is at least 60 years old and has completed 35 years of pensiona - ble service may propose to their employer a reduction of working time to 80% of full-time hours. In such cas - es, the employee retains 90% of the salary they would receive for full-time work and 100% of social security contributions. It is important to emphasise that this arrangement is not an entitlement; rather, it allows the employee to propose an adjustment. However, for it
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