International review of approaches to tackling child poverty: Slovenia

Overview of child and family policy in Slovenia and their impact on poverty

Since independence, Slovenia’s social security and labour market policies have prioritised redistributing incomes to families with children. Funded by social security contributions and state contributions, the generous benefits provided by Slovenia’s social welfare system have consistently kept Slovenia’s child poverty rates below the EU average.^{[71] [72]} Households with dependent children have consistently had some of the lowest poverty levels amongst all household types after social transfers – even as poverty rates have increased for other groups.

Social security and family allowances

Since its inception, Slovenia’s social security system has been financed by compulsory employer and employee social security contributions. These are separate payments from Personal Income Tax but are deducted from earnings in the same way. ^[73] Social security contributions include parental insurance, funded by both employers and employees, each contributing 0.1% of the employee's gross income.^[74] Parental insurance covers maternity and paternity leave compensation. In addition to parental insurance, families in Slovenia benefit from various family allowances, including child benefits, parental allowances, large-family allowances, parental leave compensation and childbirth grants. Unlike parental insurance, family allowances are largely funded by taxation and thus come out of the state budget.^[75] These protections have been provided consistently for the past several decades, but many saw cuts during the austerity period of 2012 and 2013. This austerity period also coincided with increases in child poverty rates.

The following sections provide more detail on each of the key family policies.

Maternity, paternity and parental leave

Maternity leave in Slovenia was introduced when it was still part of Yugoslavia, with new mothers receiving nine months of paid leave by the end of the socialist era.^[76] This regulation continued to be enforced after Slovenia’s independence. The Yugoslav legislation was eventually replaced by the Parental Care and Family Benefits Act (2001). Since then, maternity benefits have stayed the same whilst paternal and parental leave allowances have gone through minor changes over the years. Currently, leave benefits are available to those who have made social security contributions in Slovenia for at least 12 months in the last three years. Whilst on leave, social security contributions are made by the state on the beneficiaries’ behalf.

Since 2001, mothers have been entitled to a maternity leave of 105 days at 100% compensation. It is compulsory for mothers to use at least 15 days of their maternity leave which are non-transferable and must be taken together.^[77] There is no upper limit on how much maternity benefit mothers can receive.^[78] As for Scotland, the legal minimum maternity pay in the UK is 90% of earnings for the first six weeks, followed by up to £184.03 per week for the remaining 33 weeks.^[79] Fathers in Slovenia can claim maternity leave if the mother is unable to care for the child (for example, in the event of her death, abandonment, or if she is deemed medically unfit).^[80]

In 2001, fathers were entitled to 90 days of paid paternity leave. Today, paternity leave grants 30 days of paid leave from the day the child is born at 100% compensation, 15 of which must be taken before the child turns six months old.^[81] This is increased by 10 days per child in the event that more than one child is born at once. For comparison, fathers in the UK may take up to two weeks of paid paternity leave^[82]. Paternity leave is available to fathers in Slovenia, but if the father chooses not to use it, another caregiver responsible for the child may take it instead. Adoptive parents also are entitled to paternity leave. If fathers’ income exceeds 2.5 times the average gross salary in Slovenia, paternity leave compensation is capped at this amount, a figure which is annually adjusted.

In 2014, changes to the Parental Care and Family Benefits Act aimed to redistribute the responsibility of childcare more evenly between mothers and fathers. Before the amendment, parental leave (called childcare leave at the time) was limited to only one parent for a total of 260 days. Today, in addition to maternity and paternity leave, both parents are entitled to 160 days of parental leave each. Currently, most men only use half of their leave allowances, with women assuming the primary caregiver position.^[83] Stakeholder interviews with civil servants from Slovenia’s Ministry of Labour revealed that this pattern also occurred before the 2014 reforms, with mothers primarily taking the additional childcare allowance, despite both parents being eligible. Parents on full parental leave receive 100% of their previous year's salary, while part-time work reduces compensation accordingly. During the period of austerity, however, the compensation base of parental leave was temporarily reduced to 90%. Each parent has 60 non-transferable days, whilst the remaining 100 days can be transferred to their partner as they wish. Parental allowance is increased by 90 days per child in the event that more than one child is born at once or if the parents already have at least one other child below eight years old. Parental leave compensation is capped at 2.5 times the average gross salary, like paternal leave compensation.

Parental allowance

In 2001, a parental allowance of 35,000 tolars per month (approx. €87 in 2001 or €146 today) was introduced for parents who care for a child but are not eligible for maternity, paternity or parental leave following the birth of a child (for example, unemployed parents, or parents who have not worked for at least 12 months in the last three years). Parental allowance is 77 days, starting from the day the child is born, and this automatically goes to the mother of the child unless under specific circumstances. Today, parental allowance amounts to €494 per month.^[84]

Child benefits

Slovenia’s child benefit is an annually inflation-adjusted monthly payment intended to supplement parents’ incomes to support the upbringing and education of a child. Introduced in 2001, families earning below the average salary receive child benefits, which increase with each child. A 30% increase in child benefits is granted to children of single-parent families. Despite being means-tested, Slovenia’s relatively flat income distribution (Gini coefficient of 24.8 in 2004^[85], compared to 34 in the UK in 2004-07^[86]) has meant that most families have been eligible for some form of payment. In 2022, 86% of children in Slovenia were receiving the allowance.^[87] The eligibility threshold has been through several adjustments, most notably during the country’s austerity period, when the benefit was temporarily limited to those people earning below 65% of the average salary. In 2018, eligibility thresholds were changed from a percentage average wages to a nominal euro amount.^[88] Today, child benefit remains means-tested. To be eligible for child benefits today, parents in Slovenia must have net earnings of below €1,293 on average.^[89] Currently, average net monthly earnings in Slovenia are €1,526.^[90] These high thresholds mean that most families can claim some form of child benefit. In 2023, for example, there were 326,435 beneficiaries of the child benefit,^[91] while the child population of Slovenia was 397,442 children.^[92]

Large-family allowances

Since 2001, any family with three or more children under the age of 18 (or 26 if in full-time education or training) can claim a large-family allowance. This allowance is paid annually, and the size of the transfer increases with the number of children under 18 in the family. Families can claim a large-family allowance in addition to other family benefits such as child benefits and parental leave. Historically, this payment has been universal, but it temporarily became means-tested in 2012 as part of the government’s austerity measures.

Childbirth grants

With the exception of the austerity period, families have received a one-time childbirth grant at the time of a baby’s birth to contribute to essential items since the Parental Care and Family Benefits Act was enacted in 2001. Before 2012, the value and delivery method of the grant varied by Slovenian municipality, with some offering vouchers for childcare services or toy stores, whilst others gave cash grants. The childbirth grant ranged from €100 in the Municipality of Črenšovci to €500 in the Municipality of Bled. Austerity measures in 2012 meant that this benefit was temporarily removed for families earning above 64% of the average monthly wage. Today, the childbirth grant sits at a fixed flat rate of €350, available for all families.

Childcare

The Kindergarten Act (1996) enshrined parents’ rights to Early Years Education and Care (ECEC) and introduced the state funding of preschool (kindergarten) education. Local community budgets funded public preschool salaries and material costs, helping to reduce to cost of early years education for parents.

Childcare subsidies remain generous, but have been reduced over time. In 2001, only 34.2% of aggregate preschool fees were paid by parents, with the state covering the remainder.^[93] Amendments in 2008 introduced free meals but also included means-tested subsidisation. This meant that families on the lowest incomes (below 26% of the gross average salary in Slovenia) paid only 10% of the actual preschool cost. Whereas families with higher incomes could pay up to 80% of the total childcare cost, meaning all families benefit from some level of ECEC subsidisation.^[94] In addition, the 2008 amendments introduced a 50% subsidy of preschool fees for children aged three or above, and a 100% subsidisation of the younger child(ren)’s costs. These subsidies are funded by the state budget. In 2012, temporary austerity measures replaced the 100% subsidisation of younger children’s fees with an effective 70% fee subsidy. Additionally, the 50% subsidy for children aged three and above was removed, making preschool more expensive for families with multiple children below school age. Today, most of these cuts have since been reversed. The 70% subsidisation of the younger child(ren)’s preschool fees was replaced once again with the 100% subsidisation. However, the 50% subsidy for children aged 3 and above was never restored.

Outcomes

Slovenia’s social security system has prevented many families and children from falling into poverty. Amongst EU countries, Slovenia’s social transfers (pensions excluded) has had one of the most significant impacts on child poverty rates, with family-oriented benefit packages reducing child poverty rates by at least 40% in 2013.^[95] Before social transfers, Slovenia’s child poverty rates sit at 23% in 2024^[96], compared to 10.7% after social transfers.^[97]

Many of Slovenia’s family and labour market policies complement one another. For example, parents’ entitlement to full-time childcare in preschools begins right when parental leave ends.^[98] Additionally, parental leave (but not maternity and paternity leave) being equal for both mothers and fathers has encouraged childcare to be split more evenly between mothers and fathers, encouraging a higher level of female labour market participation and thus minimising the risk of a family with young children falling into poverty as a result of a mother’s career disruption.^[99] The accessibility of professional childcare due to the heavily subsidised childcare fees has also encouraged female employment and has significantly improved the economic positions of families with young children in Slovenia.^[100] Together, these family-focussed policies create a network of protections that keep families and children from falling into poverty.

Labour market policy

Slovenia’s labour market policies have played a significant role in shaping income security and overall economic wellbeing, with special considerations for parents in the workplace. Through a combination of unemployment insurance, income support, parental protections and collective bargaining, these policies have helped maintain high workforce participation amongst women and have limited in-work poverty.

Unemployment insurance

Since independence, Slovenia has historically had one of the most generous unemployment insurance systems amongst transition countries.^[101] Slovene residents are protected by unemployment insurance which is paid for by compulsory employer and employee social security contributions. Unemployment insurance provides income for those who lost their job for no fault of their own or against their will.^[102] Currently, individuals receive 70% of their previous year’s salary for the first three months followed by 60% after that. The right to unemployment insurance benefits lasts up to 24 months depending on the length of time an individual has been making insurance contributions. The minimum unemployment insurance benefit is set at 45.56% of the minimum wage, whilst the maximum cannot exceed three times this amount. The duration that an individual can receive unemployment benefits increases with the length of time they have been making social insurance contributions. Whilst receiving unemployment benefits, pension and disability contributions are made on behalf of the individual by the state.

Income support

In addition to unemployment benefits, individuals are also able to claim income support if their total income remains below the eligibility threshold, creating an effective minimum income. Passed in January 2008, the Protection Allowance Act outlines the financial assistance available those whose monthly household income did not meet the threshold of approximately €381 at the time.^[103] Currently, the exact amount of income support an individual is eligible for depends on several factors including their income, number of family members and their assets.^[104]

Parent-specific labour market policies

In addition to generous maternity, paternity and parental leave allowances and heavily subsidised childcare, Slovenia’s labour market policies have granted parents special protections in the workforce. Flexible working arrangements are enshrined in law and, since 2001, parents have had the right to work part-time (no more than 20 hours per week between them) if it is to look after a child below the age of three, below the age of eight with a disability, or two children with at least one being below the age of eight. Under these circumstances, the state makes social security contributions for the parent based on a full-time salary.^[105]

Labour market policies have contributed to Slovenia maintaining a relatively high level of female workforce participation since gaining independence, consistently staying above 60%. However, despite these efforts, female participation rates have consistently sat behind males’ participation rates. As of 2025, 73% of working-age women are active in the labour market, compared to 80% of men. This is in comparison to 62% of women and 72% of men in 1990.^[106] Despite generous maternity leave benefits and preschool subsidisation, women cite family obligations and a lack of formal connections as the main barriers to entering the workforce.^[107]

Collective bargaining and wages

Key labour market outcomes are determined in Slovenia through collective bargaining, with trade unions, employer organisations and the government working together to make decisions. Slovenia’s collective bargaining has its roots in 1970s Yugoslavia, but at the time it only covered smaller sectors and was heavily controlled by the state.^[108]

Nevertheless, trade union presence in Yugoslavia began to grow throughout the 1980s.^[109] During Slovenia’s transition period, key laws such as the Act on Basic Rights Stemming from Employment (1989) and the Employment Relationships Act (1990) officially recognised collective bargaining as a mechanism for regulating labour market outcomes, allowing unions and employer organisations to negotiate agreements that set the minimum standards for wages and working conditions in various industries.^[110] Today, 27% of employees are in a union and 90% are covered by collective bargaining.^[111]

Since 1995, Slovenia has had legally mandated minimum wages.^[112] Slovenia has one of the highest minimum wages in the EU, set at €1,278 per month as of 2025.^[113] Wages in Slovenia are determined annually by collective bargaining with the aim of reducing wage inequality and providing the lowest earners with a living wage.^[114] Notably, in 2010, wages in Slovenia rose by 22.9% in just one year, due to pressures from trade unions to adjust wages in line with the rising cost of living.

Outcomes

In addition to generous social transfers such as family-specific allowances and preschool fee subsidisation, parents in Slovenia benefit from various labour market protections, creating a well-developed family policy.^[115] Despite all employees being entitled to claim unemployment insurance, benefits have been strongly targeted towards households on low incomes before transfers.^[116] Although the objective of unemployment insurance is not necessarily to alleviate poverty, the country’s unemployment insurance system has had a redistributive effect on income.^[117] In combination with the other social security protections available to families, generous unemployment benefits act as another protective mechanism against child poverty in Slovenia.

On the surface, one may assume that Slovenia’s high minimum wage is a contributing factor to the country’s low child poverty levels. However, when taking a closer look, the opposite appears to be true. The 2010 minimum wage increases ultimately had an adverse effect on the financial situations of Slovenia’s low-skilled workers. In 2010, as economic conditions were worsening, trade unions pushed for higher minimum wages in line with the rising cost of living. As a result, the government increased minimum wages by 22.9% overnight, changes which made low-skilled labour overly expensive for employers. The sudden increase in the national minimum wage exacerbated Slovenia’s growing unemployment at the time. That same year, unemployment amongst low-skilled workers rose by almost three percentage points and the minimum-to-average-wage ratio rose to 47.6%.^[118] By 2013, 10.5% of workers were earning the minimum wage.^[119] Although minimum wage increases can provide a potential opportunity for those experiencing in-work poverty to be lifted out, it may also increase the probability of higher income households falling into poverty due to a loss of employment, fuelled by increased labour costs.^[120] Ultimately, Slovenia’s union-led minimum wage increase is an example of a policy that had unintended, negative effects on the country’s poverty rates.