We would like to inform our clientele that in the year 2019 an increase in Social Insurance Fund Contributions will come in effect and that contributions for the implementation of the National Health Insurance System (NHIS) will commence:
According to the Social Insurance Law of 2010, Social Insurance Contributions on insurable earnings will increase by 0.5% from 7.8% to 8.3% for both employees and employers as of January 1, 2019.
Contributions to the social insurance and other relevant funds are calculated on the employee’s gross earnings at the following rates:
|Social Insurance Fund||8.3||8.3||15.6|
|Industrial Training Fund||0.5|
|Social Cohesion Fund||2.0|
The rates mentioned above (excluding the rate applicable to contributions to the Social Cohesion Fund) are applied on the employee’s gross earnings subject to the following upper limits.
|Per WEEK||PER MONTH||PER Annum
All contributions that are directly withheld from employee’s monthly salary should be paid not later than the end of the calendar month following the month that the contribution relate to.
NHIS-National Health Insurance System
According to the National Insurance law of 2010 (as amended in 2017) employer and employee contributions for the implementation of the system will be commence on March 1, 2019.
Specifically, from March 01,2019 and as of February 28, 2020, first year of the NHIS, employers’ contributions will be 1,85% and the employee’s contributions 1,70% on the employee’s earnings. The employer is responsible for withholding the applicable amount from the employer’s earnings and pay both their own and their employee’s contributions through the Social Insurance office together with the Social Insurance Contributions monthly not later than the end of the calendar month following the month that the contribution relate to.
Please note that NHIS contributions are paid on all employee earnings (as defined in the Social Insurance Law) up to €180,000; the insurable earnings limit of SIF contributions does not apply in this case.
|Employees/ Pensioners/ Income Earners||1.7||2.65|
|The Rebublic or natural/legal person responsible for the remuneration of officers||1.85||2.9|
If you have any questions or comments, please do not hesitate to contact us.
Director G.P. Auditworld Ltd