Mandatory Collective Consultation on Supplementary Pension Insurance

The amendment to the Pension and Disability Insurance Act (ZPIZ-2O, Official Gazette RS No. 90/25) introduces an obligation for employers to conduct collective consultations regarding the establishment of collective supplementary pension insurance. The amendment does not require employers to establish and finance such insurance in all cases; rather, it only introduces the obligation to carry out a collective consultation procedure regarding its establishment.

The obligation to conduct collective consultations applies to employers who:

-         had more than 10 employees as of 1 January 2026, and

-    have not yet established collective supplementary pension insurance for their employees.

Such employers must complete the collective consultation procedure no later than 1 January 2028. Employers who exceed the threshold of more than 10 employees after 1 January 2026 must complete the procedure within two years from the date on which they meet this requirement.

For the purpose of ensuring transparency and providing evidence of the procedure, it is recommended that employers properly plan and document the process. The collective consultation is conducted with the representative trade union at the employer. If no representative trade union is organised, the consultation is conducted with the employee’s council. If the employer has neither a trade union nor an employee’s council, the consultation is conducted directly with the employees.

If the parties reach an agreement, the collective supplementary pension insurance is established by concluding an agreement on the formation of a pension plan or by joining an already approved pension plan. The agreement determines, among other things, the conditions for employees’ inclusion in the insurance scheme, the amount of contributions or the method for determining them, the insurance provider, and other conditions for implementing the pension plan. The agreed contributions must comply with at least the prescribed minimum annual premium, which for 2026 amounts to 432,61 EUR per employee.

The establishment of a collective supplementary pension insurance scheme may provide benefits for both employers and employees. Premiums paid by the employer for the benefit of employees are not subject to social security contributions and are not considered a taxable benefit in kind for employees. If legally prescribed conditions are met, the employer may claim a reduction of their corporate income tax base for the premiums paid. The tax relief may be claimed up to a maximum amount of 24% of the mandatory pension and disability insurance contributions for an individual employee, but not exceeding the statutory annual limit, which for 2026 amounts to 3.224,18 EUR per employee.

For employees, employer contributions to collective supplementary pension insurance represent a form of additional compensation for work (monthly payments credited to individual supplementary pension insurance accounts), intended for additional retirement benefits. Employees can also voluntarily contribute their own funds to the pension plan. If the employer does not use the full amount of the tax relief, employees can claim the unused portion for their own contributions, which can further reduce their taxable income base for income tax purposes.

If no agreement is reached during the collective consultation procedure, the employer and the representatives of the employees must sign a statement confirming that no agreement has been reached and submit it to the Labour Inspectorate of the Republic of Slovenia.

We recommend that employers verify in due time whether they are subject to the obligation to conduct collective consultations and ensure appropriate preparation and documentation of all activities related to the procedure.

Your KM Consulting team