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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 netCorporate 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 method | Net income | Eff. rate | Social | Health |
|---|---|---|---|---|
| Dividends only | €50,220.00 | 16.3% | ✗ | ✓ |
| Minimum salary + dividends | €46,449.64 | 22.6% | ✓ | ✓ |
| Director remuneration (irregular) | €35,692.12 | 40.5% | ⚬ | ✓ |
| Salary (employee) | €31,139.43 | 48.1% | ✓ | ✓ |
✓ = 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.