Contributions are paid in one state, and the deciding factor is the proportion of work the employee performs from home in Czechia. If they work exclusively from home, Czech social security and health insurance contributions are payable, even though the company is based in Slovakia. If they work partly at home and partly in the Slovak office, they remain covered by the Slovak system where the proportion of work in Czechia is below 25 %, and generally move to the Czech system from 25 % upwards. Where they work from home for 25 % to less than 50 % of their working time, you and the employee may jointly apply for Slovak coverage under the Framework Agreement on cross-border telework.
An employee of your Slovak company lives in Brno and wants to work from home. In this situation, contributions are determined by where the employee physically performs their work, rather than where the company is based. If they work exclusively from home in Czechia, Czech coverage applies. If they divide their time between home and the Slovak office, the proportion of work in Czechia is decisive, and where they work from home for 25 % to less than 50 % of their time, an application for Slovak coverage is possible under the conditions of the Framework Agreement. The same rules apply in reverse to a Czech company whose employee works from home in Slovakia.
Coverage in only one state
An employee is subject to the social security legislation of only one Member State (Article 11(1) of Regulation (EC) No. 883/2004). If they work in only one state, that state’s legislation applies (Article 11(3)(a)). Where they work exclusively from their home in Czechia, Czech social security and health insurance coverage therefore applies, even though the employer is based in Slovakia.
A person who normally works in two states is subject to the legislation of their state of residence if they perform a substantial part of their activity there. Otherwise, they are subject to the legislation of the state where their employer is based (Article 13(1)). The implementing Regulation clarifies what constitutes a substantial part:
The following quotation is reproduced in its original language:
V rámci celkového posúdenia podiel nižší ako 25 %, pokiaľ ide o uvedené kritériá, znamená, že sa podstatná časť činností nevykonáva v príslušnom členskom štáte.
čl. 14 ods. 8 nariadenia (ES) č. 987/2009, konsolidované znenie
For an employee, the indicative criteria are working time and/or remuneration, and the anticipated situation over the following 12 calendar months is assessed (Article 14(8) and (10)). A person who works from home in Czechia for less than a quarter of their time remains covered by the Slovak system. At a quarter or more, they generally move to the Czech system.
Framework Agreement on cross-border telework
The Framework Agreement on cross-border telework, concluded under Article 16(1) of Regulation No. 883/2004, has applied since 1 July 2023. Both Slovakia and Czechia have joined it. An employee who works from home in their state of residence for 25 % to less than 50 % of their working time may, together with their employer, apply to be subject to the legislation of the state where the employer is based. According to the Czech Social Security Administration, the employee is entitled to the exception if the conditions are met.
The Agreement does not apply to an employee who also performs activities other than working from home in their state of residence, such as working at a branch or visiting clients. Nor does it apply to self-employed persons or to an employee who has additional employment with an employer based in another state or also carries on a business. The application is submitted in the state where the employer is based; for a Slovak company, it is submitted to the Ministry of Labour, Social Affairs and Family of the Slovak Republic. According to ČSSZ, an application may cover a retrospective period of no more than three months, and only if contributions for that period were paid in the state where the employer is based. The Framework Agreement does not provide a solution where work from home accounts for 50 % or more. An individual application for an exception under Article 16 is possible. However, there is no entitlement to it.
Obligations of the Slovak company
If Czech legislation applies to the employee, the Slovak company must fulfil all employer obligations, including paying contributions, as though it were based in Czechia (Article 21(1) of Regulation No. 987/2009). It may agree with the employee that the employee will pay contributions on its behalf. This does not discharge the employer’s underlying obligations, and the agreement must be notified to the Czech institution (Article 21(2)). The employee must notify the institution in their state of residence that they work in two states; that institution provisionally determines which state’s legislation applies to them (Article 16(1) and (2)).
Agree on working from home in the employment contract (Section 52(4) of the Labour Code). If the place of work is the employee’s home in Czechia, the contract must also specify the location and duration of work outside Slovakia (Section 44a(1)). Even if you have chosen Slovak employment law, the employee must not lose the protection of the mandatory rules of the law that would otherwise apply, generally the law of the state in which or from which they habitually work (Article 8(1) and (2) of the Rome I Regulation). The rules on telework in a Slovak contract are discussed in the article on working from home and telework in an employment contract (forthcoming) (in Slovak).
Tax is a separate issue
Under Article 14(1) of the double taxation treaty between Slovakia and Czechia (Notice No. 238/2003 Z. z.), the salary of a resident of one state is taxable only in that state unless the employment is exercised in the other state. A Czech resident’s salary for work performed from home in Czechia is therefore taxed in Czechia. Slovakia may also tax the salary attributable to days worked in Slovakia, because the exception for stays of up to 183 days requires an employer who is not a Slovak resident (Article 14(2)). Check with a tax adviser how the tax is calculated, who remits it and how double taxation is prevented.
How we can help
Through our employment of foreign nationals and posting of workers service, we will assess which state’s legislation applies to the employee, prepare the supporting documents for an application under the Framework Agreement and coordinate the process with your payroll department. We will prepare an amendment to the employment contract covering work from home in the other state through our employment contracts and documentation service. Reimbursement of electricity and internet costs when working from home is explained in the question on reimbursement of expenses for working from home.
This answer provides general information on the law as at 3 October 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.
