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Director remuneration 2026

Salary vs dividends vs director fee

Compare different payout methods from your Slovak LLC (s.r.o.). The calculator accounts for taxes, contributions and the social-security impact of each option.

Inputs
Enter the total annual company cost for your payout

Total company cost for your remuneration

10% up to €100k revenue, 21% standard, 24% over €5M revenue

Regular = full social insurance, irregular = pension only

If not, you pay health insurance as self‑payer (€121.92/month)

Dividends only
Best net
Corporate income tax (10%)-€6,000.00
Dividend withholding tax (7%)-€3,780.00
Net income€50,220.00
Effective rate16.3%

Pros:

  • Lowest overall tax burden
  • Simple administration
  • No limits

Cons:

  • No social insurance
  • No pension entitlement
  • Payout only after approval
Minimum salary + dividends
Wage contributions + tax-€6,207.99
Corporate income tax (10%)-€4,504.52
Dividend withholding tax-€2,837.85
Net income€46,449.64
Effective rate22.6%

Pros:

  • Social insurance via minimum salary
  • Lower overall tax burden
  • Pension entitlement

Cons:

  • Low pension base
  • More complex administration
  • Two income types
Director remuneration (irregular)
Pension + health insurance (company)-€12,000.00
Pension + health insurance (director)-€4,320.00
Income tax (reduced allowance)-€7,987.88
Net income€35,692.12
Effective rate40.5%

Pros:

  • Lower contributions than salary
  • Pension insurance
  • Flexible payout

Cons:

  • Pension insurance only
  • No sickness benefit
  • Shareholder resolution required
Salary (employee)
Social + health insurance (employer)-€15,947.14
Social + health insurance (employee)-€6,343.61
Income tax (reduced allowance)-€6,569.82
Net income€31,139.43
Effective rate48.1%

Pros:

  • Full social insurance
  • Pension entitlement
  • Regular income

Cons:

  • Highest overall tax burden
  • High employer contributions
  • Payroll administration
Clear comparison
Payout methodNet incomeEff. rateSocialHealth
Dividends only€50,220.0016.3%
Minimum salary + dividends€46,449.6422.6%
Director remuneration (irregular)€35,692.1240.5%
Salary (employee)€31,139.4348.1%
✓ = full insurance, ⚬ = pension only, ✗ = no insurance

Key rules (Slovakia, 2026)

  • Non-taxable allowance: full €5,966.73 up to €26,367 tax base, then reduced to €0 at €50,234
  • Dividends: 7% withholding tax (profits from 2025+), no social insurance contributions
  • Director remuneration: regular = full social insurance; irregular = pension only (4%+14%)
  • Health insurance self‑payer: if not insured elsewhere, minimum €121.92/month

Important notice

This calculator provides an estimate. Director remuneration requires correct setup (e.g., shareholder resolution). The optimal strategy depends on your personal circumstances (age, pension planning, other income). Consult an advisor.