On September 19, 2025, the Official Gazette of the Republic of Slovenia (No. 70/25) published the Act Amending and Supplementing the Act on the Regulation of the Labor Market (ZUTD-I). The Act entered into force on September 20, 2025, with most of the substantive changes taking effect on January 1, 2026. The reform introduces higher unemployment benefits, new options for reduced working hours for workers approaching retirement, expanded temporary or occasional work for retirees, and stricter rules for temporary employment agencies.

Higher Unemployment Benefits

ZUTD-I increases both the minimum and maximum amounts of unemployment benefits. These will be linked to the gross minimum wage:

  • Minimum benefit: 70% of the gross minimum wage.
  • Maximum benefit: initially 130% of the gross minimum wage, gradually decreasing to 80%.

The previous preferential treatment for cross-border workers is abolished to ensure fairer treatment across beneficiaries.

The duration of unemployment benefits is also revised. From 2026 onward, exceptions from the principle of exhausted insurance periods will apply based on age and contribution years. For example, in 2026 the new calculation will apply to insured persons aged 57 with 37 years of service, in 2027 to those aged 58 with 37 years, and subsequently to those aged 59 with 37 years of insurance.

Reduced Working Hours before Retirement – the 80/90/100 Model

One of the most notable novelties is the introduction of the 80/90/100 scheme, allowing older employees to remain active in the labour market longer:

  • Employees aged 58+ or with 35 years of pensionable service may agree with their employer to work 80% of full hours.
  • They receive 90% of their salary, fully taxed and subject to social contributions.
  • For pension purposes, contributions are covered as if they worked 100%, ensuring no negative impact on their future pension base.

The measure prohibits overtime, civil-law contracts with the same employer, and ensures that workers can still partially access early pension payments proportionate to their reduced workload. The age threshold will gradually increase until 2035, when eligibility will start at age 60.

Incentives for Hiring Older Workers

Starting 20 January 2026, employers hiring unemployed persons over the age of 59 who are receiving unemployment benefits will be eligible for financial support. The Employment Service of Slovenia (ZRSZ) will reimburse the employer with a monthly incentive equal to 40% of the worker’s last recognised unemployment benefit for up to 12 months. This measure is intended to improve the employability of older workers.

Expanded Opportunities for Pensioners

The monthly and yearly limits for temporary or occasional work by retirees will increase. Pensioners will be allowed to work up to 85 hours per month (previously 60) with a higher annual income ceiling. A unified calculation method is introduced for the minimum hourly wage for both pensioners and students, ensuring equal treatment.

Stronger Oversight of Temporary Work Agencies

The law strengthens rules on the provision of agency work (temporary work through employment agencies), a sector considered particularly sensitive due to worker vulnerability. Key changes include:

  • A stricter definition of labour supply activities.
  • Higher requirements for obtaining or maintaining a licence.
  • An increased bank guarantee from EUR 30,000 to EUR 100,000.
  • Mandatory establishment of a Slovenian branch for agencies headquartered in another EU/EEA country or Switzerland.

Employers who have been sanctioned by the Labour Inspectorate or the Financial Administration, or who failed to comply with contractual obligations in active employment policy programmes, may be denied access to agency workers.

Other Changes

  • Employment Support Service: A new ZRSZ programme to help jobseekers retain employment and integrate successfully into the workplace.
  • Public Works: The starting wage of participants will be raised, with the minimum set at the level of the statutory minimum wage.
  • Career Guidance: Self-learning is recognised as a new activity within lifelong career orientation.
  • Unemployment Insurance Contributions: Flexibility is introduced in using unused rights to the payment of pension and disability insurance contributions.
  • APZ Measures: The procedure for public calls to employers for active employment policy measures is aligned with a Constitutional Court ruling.

Timeline of Implementation

  • 20 September 2025 – ZUTD-I entered into force.
  • 1 January 2026 – Most measures become applicable, including changes to unemployment benefits, agency work, and the 80/90/100 scheme.
  • 20 January 2026 – Hiring incentives for unemployed persons aged 59+ enter into force.

About us

SIBIZ www.sibiz.eu is a Ljubljana-based advisory firm specializing in supporting foreign individuals, business professionals, companies and corporations in Slovenia. With strong expertise in employment law, labour market compliance and legal advisory, we ensure that our clients navigate Slovenian regulations with clarity and confidence. Our team also provides integrated support in accounting, taxation, real estate and relocation, offering complete solutions for doing business in Slovenia.

For more information contact us at www.sibiz.eu