Persons in other legal relationships (students, persons working under civil-law contracts)

Persons who carry out work in the context of another legal relationship are insured on a compulsory basis if they do not have compulsory or voluntary pension and disability insurance on the basis of full-time employment, or insurance, under any provisions of the Pension and Disability Insurance Act and are not recipients of any pension.

The following work in particular is deemed to be work within the context of another legal relationship:

• under a work, copyright or other civil-law contract;
• as a procurator or a partner under the regulations on companies;
• on the basis of appointment to the bodies of a capital or unincorporated company, foundation, institute, cooperative, chamber, local community or any other legal person governed by public or private law;
• on the basis of appointment as a bankruptcy administrator, a liquidator or a compulsory composition administrator;
• on the basis of entry in the register of court experts or court appraisers;
• student work;
• personal supplementary work.

These are the most common types of civil contracts that form the basis for another legal relationship.

Pension and disability contributions, as well as certain health insurance contributions, must be paid in the case of work carried out under another legal relationship.

Registering for insurance

Under another legal relationship, neither the payer nor the insured party register for or cancel insurance. Instead, the payer only calculates and pays contributions for compulsory pension and disability insurance.

The duration of the insurance period is determined by ZPIZ on the basis of data supplied annually by the Financial Administration of the Republic of Slovenia on the contributions paid on earnings from other legal relationships for the previous calendar year. ZPIZ also enters data relating to the insurance period in the central register, after having determined the duration of the insurance period and taken into account any other insurance for this person.

Payment of contributions

The obligation to pay contributions for insured persons who are insured on a compulsory basis due to work carried out within the context of another legal relationship arises if, at the time of payment of the earnings from that legal relationship, insured persons meet the requirements for compulsory insurance, namely:

• they are not receiving a pension;
• they are not insured on a compulsory basis; or
• they are insured on a compulsory basis for a part-timework, or insurance.

Immediately prior to the payment of the earnings, the insured person must provide the payer with the necessary information that enables the payer to correctly calculate and pay the contributions from the earnings generated under another legal relationship. Pensioners who receive a pension in Slovenia may use a Pensioner’s Card to prove their pensioner status. A person who receives a pension in another Member State has pensioner status and is treated the same as a pensioner in Slovenia with regard to insurance obligations.

Contribution types and rates for pension and disability insurance:

• insured person’s contribution (at a rate of 15.5 % of the base);
• employer’s contribution (at a rate of 8.85 % of the base).

In addition to pension and disability insurance contributions, certain health insurance contributions also have to be calculated and paid.

Person liable to pay contributions

• the person liable to pay the insured person’s contribution is the insured person, although this contribution must be calculated and paid in for the insured person (on their behalf and for their account) by the payer;
• the person liable to pay the employer’s contribution is the payer of the earnings.

If the payer of earnings for work performed under another legal relationship is not a taxpayer under the law governing the tax procedure (being a foreign legal person that has neither a registered branch nor a non-resident’s business establishment in Slovenia, or a natural person who is not registered to pursue an activity), the person liable to pay the employer’s contribution is the insured person.

Basis for the calculation and payment of contributions:

The basis for the payment of contributions for insured persons under another legal relationship is each individual payment for the work or services received on the basis of another legal relationship and deemed to be income under the income tax act.

Forms and deadlines

A payer of earnings who is a taxpayer (legal person, natural person pursuing an activity) must calculate the insured person’s and employer’s contributions in the withholding tax return (REK form), which must be submitted to the tax authority no later than by the day the earnings are paid.

The payer of the earnings must pay the calculated contributions for the insured person under another legal relationship no later than five days after payment of the earnings.

Determining the duration of an insurance period and recording the insurance period

Insured persons who qualify for compulsory insurance under another legal relationship shall not register for insurance when the conditions applying to compulsory insurance arise, or cancel insurance when these conditions cease. The duration of the insurance period is determined subsequently on the basis of the total annual amount of all earnings from other legal relationships, in the following calendar year for the previous calendar year. After determining the duration of the insurance period, ZPIZ also arranges for the registration for, and cancellation of insurance, and enters it in the central record of insured persons.

The duration of the insurance period is determined by granting one month of insurance for each 60 % of the average monthly salary from the year for which the calculation was made, up to a maximum of 12 months per calendar year. If the total annual amount of all earnings resulting from another legal relationships does not reach 60 % of the average monthly salary, the duration of the insurance period is determined in proportion to that amount.

An insurance period established in the manner described above starts from the beginning of the calendar year for which the calculation is made and ends on the day corresponding to the last day of the calculated period, but not later than 31 December of that year.