When do you graduate from an EOR to your own Slovakia entity?

The table below uses EUR 555 as an illustrative euro equivalent of the Teamed fee. This is illustrative. The actual euro amount depends on the exchange rate at the time of invoice. Teamed charges from $599 USD with zero FX mark-up.

All entity cost figures in this table are typical ranges. They cover outsourced payroll, bookkeeping, statutory filings, and HR admin for a small Slovak s.r.o. They are illustrative, not law figures. Actual costs vary with your outsourcing model and benefits programme.

The employer social and health contributions are the same on both sides of this comparison. Employer health insurance is 11% of gross pay with no cap. Old-age pension is 14% and the reserve solidarity fund is 4.75%, both up to a monthly assessment base of €16,764. These rates apply whether you run EOR or your own entity. They do not move the crossover much, but they add filing work on the entity side.

Run the Crossover Calculator with your own headcount and salary band.

1. Calculate the EOR cost

   Multiply the Teamed fee (from $599 USD) by your planned Slovakia headcount. This is the fixed variable cost. It grows in a straight line as you hire.

2. Estimate the entity fixed overhead

   Typically EUR 2,500 to 4,500 per month for a small Slovak s.r.o. This covers payroll, bookkeeping, statutory filings, income tax and insurance administration, and first-point HR. This cost does not grow much until headcount passes twelve.

3. Find the crossover headcount

   The crossover is where EOR monthly cost equals entity monthly overhead. For most Bratislava salary bands, this is around six to nine staff. Use the Crossover Calculator for your own numbers.

4. Factor in non-financial triggers

   The maths gives you a headcount threshold. Local substance, public procurement eligibility, and market-validation reversibility are separate questions that may override the cost crossover in either direction.

5. Plan the graduation date

   Allow three to six weeks for entity formation before the first payroll on your own entity. Factor in two to four weeks extra for the bank account. Start the GEMO process while EOR continues running.

These are typical ranges, not law figures. No law sets what a Slovak s.r.o. costs to form. The range reflects real professional services market rates in Bratislava. It moves with share structure and how much you outsource.

Why the bank account matters for payroll

Most Slovak banks require a registered s.r.o. with a tax number and a named managing director before opening a business account. The registration sequence matters. Expect 2 to 4 weeks from formation to an opened account, assuming the director is available for identity checks. Foreign-parented companies should budget longer. This can turn a 3-week formation into a 5 to 9 week wait before first payroll if the sequence is not managed tightly.

These figures are typical market ranges for a small Slovak company with 1 to 12 staff. They are illustrative, not law figures. Actual costs depend on whether you outsource or hire in-house, and on the complexity of your payroll and benefits.

Above 12 staff, dedicated in-house HR and finance capacity usually becomes necessary. The cost band widens at that point. Supplementary health and pension benefits, common in competitive Bratislava hiring, can add EUR 50 to 150 per employee per month and are not included in the overhead estimates above.

Most cost comparisons skip the director-liability dimension because it is hard to put a number on. It is worth naming before you decide.

Personal duties of the managing director under Slovak law

The managing director (konateľ) of a Slovak s.r.o. must act with the care of a prudent businessperson, keep proper accounting records, file on time, and avoid conflicts of interest. Breach of these duties can mean personal liability for losses the company suffers. These are personal duties. They cannot be outsourced to a bookkeeper or company administrator.

The compliance treadmill

• Income tax withholding: deducted at the 2026 progressive rates from 19% up to the new top rate of 35%, then remitted to the tax office each month.
• Social insurance: employer old-age pension 14% and reserve fund 4.75%, filed and paid to the Social Insurance Agency monthly, up to the €16,764 assessment base.
• Health insurance: employer 11% with no cap, paid to the employee's chosen health fund each month.
• Sick pay: from 2026 the employer pays wage compensation for the first 14 days of illness before the Social Insurance Agency takes over from day 15 days.
• Annual statutory accounts: prepared and filed each year, with audit required above set thresholds.

Each filing is individually manageable. Stacked across a year, they consume real management attention and carry personal director risk on every missed deadline. An EOR carries all of these on its own entity.

• Under 5 Slovakia staff at typical Bratislava salaries: EOR is cheaper every month. The entity overhead has nothing to spread against at that headcount.
• Market validation phase: you are hiring 1 or 2 people to test commercial fit. Forming an s.r.o. commits the EUR 5,000 share capital and management attention before you know whether Slovakia will deliver.
• Project-based hires: 6 to 12 month engagements where the formation cost will not spread out before the project ends.
• Uncertain headcount trajectory: Slovakia is a priority market but you have not committed to long-term growth. EOR keeps your options open.
• High wind-down risk: post-acquisition holding patterns or pilot programmes where adding a local entity creates exit work later. Slovak company liquidation runs through a court process and takes months.

• Sustained headcount above 8 Slovakia staff at typical salaries: the entity overhead spreads across enough people that per-head cost falls below the EOR fee.
• Local substance requirements: certain regulated sectors and public contracts require a registered Slovak company with a physical presence and a local managing director. EOR employment does not provide that substance.
• Public procurement eligibility: Slovak and EU public tenders often expect a locally registered, VAT-registered company. An EOR employer does not qualify as the contracting entity for these.
• Employee participation and benefits: senior hires expecting equity or company-specific benefit structures need a local entity to set those up properly.
• Multi-year growth plan: you have line of sight to 10 or more Slovakia staff over 24 months. Starting formation early means your s.r.o. is ready before the crossover, not after it.

The technical mechanic is contract novation: the employment contract transfers from Teamed's partner entity to your new Slovak s.r.o. on a set date. All terms carry across. Salary, social and health contributions, annual leave entitlement, and continuous service date all stay the same. The employee sees a different employer name on their payslip. Nothing else changes.

What we do operationally:

• Stand up your Slovakia entity through GEMO, typically around 3 to 6 weeks, while EOR continues running in parallel.
• Register the new entity for income tax, social insurance with the Social Insurance Agency, and health insurance with the employee's health fund.
• Open the entity bank account and payroll mandate.
• Novate every active employment contract on a single effective date.
• Migrate ongoing benefits, including any group cover, without any lapse.
• File final EOR-period returns and open new filings on the entity from the novation date.
• Provide the same People Ops specialist as the post-graduation primary contact.

The Graduation Model exists because every other EOR makes this hard. We treat the move as something we help you plan for from the day you hire your first employee through us.

Real HR and legal experts handle your Slovakia hires from the first offer letter through every monthly filing and annual accounts period. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Every employer cost passes through at cost, itemised on every invoice. You see the employer health insurance line at 11%, old-age pension at 14%, the reserve fund at 4.75%, and the annual leave accrual for 4 weeks. Nothing is hidden inside the management fee.

EOR payroll, contractor onboarding, and entity setup all live on one platform. Run the Crossover Calculator to see the month the model flips. Start from the Slovakia hiring overview. Key sources: Social Insurance Agency contribution tables and Slovak social and health insurance rates.