Slovenian Government Adopts Key Legislation on Public Employee Salaries Abroad, Pension Fund, and Reduced Working Hours

Government Approves Comprehensive Legislative Package

The Government of the Republic of Slovenia, during its 182nd regular session on December 5, 2025, adopted a series of legislative measures aimed at reforming public sector remuneration, pension provisions, and employment support. These adoptions include a new act governing salaries for public employees working abroad, an amendment to the First Pension Fund, and a decision to extend partial wage compensation for reduced working hours.

New Framework for Public Employees Abroad

A significant development is the adoption of the draft Act on Salaries and Remuneration of Public Employees and Officials Related to Work Abroad. This legislation aims to provide a comprehensive, transparent, and legally predictable system for the remuneration of Slovenian public employees and officials posted internationally. For over two decades, the rights and obligations of these employees were primarily governed by subordinate legislation. The new act consolidates all components of salaries and other remuneration into a single document, addressing specificities and exceptions for various groups of posted personnel within its chapters.

Amendments to the First Pension Fund

The Government also approved a draft amendment to the Act on the First Pension Fund of the Republic of Slovenia and the Transformation of Authorised Investment Companies. This amendment introduces two key changes: it enables the early payment of the redemption value of a policy and allows for a one-off payment of the redemption value of an annuity. The First Pension Fund (PPS), established by its namesake act, has operated as a closed mutual pension fund since 2003, with no possibility for additional contributions. Data from 2024 indicated that the PPS had 12,061 members, with membership and asset volume declining due to regular and extraordinary terminations.

Support for Reduced Working Hours Extended

Furthermore, a decision was adopted regarding the partial reimbursement of wage compensation for reduced working hours. This measure will be in effect for the period from December 5, 2025, to March 5, 2026. Based on the existing Act on Claiming Partial Reimbursement of Wage Compensation for Reduced Working Hours, this initiative allows employers to implement reduced working hours for full-time employees, ensuring at least half-time work, while partially placing them on temporary waiting for work. The primary objective of this scheme is to safeguard employment during periods when employers face temporary inability to provide full workloads due to crisis-related circumstances. The reimbursement covers 60% of the paid compensation (excluding employer contributions), capped at 50% of the latest known average annual gross salary in Slovenia. Employers benefiting from this scheme are prohibited from initiating economic dismissals for affected employees during the reimbursement period and for a subsequent duration. The government has indicated it will assess the possibility of re-adopting this decision after the current period expires.