183rd regular session of the Government of the Republic of Slovenia
The Government adopts the draft Employee Participation in Profit Sharing Act
The Government today adopted the draft Employee Participation in Profit Sharing Act, which reduces administrative burdens and introduces a fairer system of taxation. The main aim of the Act is to enable employees to participate in profit sharing to a greater extent than before, thereby strengthening their motivation and loyalty to their companies.
The Ministry of the Economy, Tourism and Sport expects that the more attractive framework for employee participation in profit sharing will increase the number of companies involved, as Slovenia currently has relatively few companies participating in such schemes.
The draft Act introduces new rules for employee participation in profit sharing. The share of profits that may be distributed to employees is being increased from the current maximum of 20 per cent to 33 per cent of the profits for each financial year. The upper limit for payments is also being raised from 10 per cent to 20 per cent of the annual gross payroll, half of which (i.e., 10 per cent of the gross payroll) is to be paid in cash. The mandatory registration of agreements is being abolished and replaced with a notification to the Financial Administration of the Republic of Slovenia.
The draft Act provides for three profit-sharing schemes: a cash profit-sharing scheme, under which profit is paid out in cash; an equity-participation scheme, under which profit is distributed in the form of equity interests; and a share scheme, under which profit is distributed as company shares.
The new arrangement for employee profit sharing is attractive for both companies and employees, as it also introduces a more favourable tax treatment. Companies can claim a 100 per cent tax relief on profits distributed to employees and may do so in the following year rather than after three years, as required under the current Act. Employees also benefit from more favourable taxation: cash payments are taxed at 30 per cent, while shares and ownership interests received are taxed at 25 per cent.
Participation in profits remains voluntary for both the company and the employees. However, all employees must participate under the same conditions and according to the criteria set out in a mutual agreement between the company and the employees. If no such agreement exists, the company must comply with the conditions and criteria set out in the Act.
The existing employee profit-sharing arrangement has not taken hold in practice: in Slovenia, only 0.07 per cent of employees are included in such schemes – 85 times fewer than in Austria. By contrast, such schemes are widespread in France, where as many as 35 per cent of employees participate in profit-sharing.
Source: Ministry of the Economy, Tourism and Sport
Information on the implementation of long-term care
The Government of the Republic of Slovenia also took note of the document Information on the Implementation of Long-Term Care.
Long-term care combines measures, services and activities intended for people who, due to the consequences of illness, age-related frailty, injuries, disability, or a lack or loss of intellectual abilities, are dependent on the help of others in performing basic and instrumental activities of daily living over a longer period of time or permanently.
The document includes data on entry points for long-term care and employment at these points, submitted applications for long-term care, eligibility assessments carried out by the entry points, and issued long-term care decisions, as well as details about the 114 call centre, which handles inquiries related to long-term care.
It also provided the Government with information on long-term care prices, the procedure for transitioning residents of care homes for the elderly into long-term institutional care users, the provision of long-term care at home and in institutions, and the long-term care information system.
Source: Ministry of a Solidarity-Based Future