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As of 1 January 2018, social security contributions are changing

Be informed, that as of 1 January 2018,  the payment for social security contributions are changing for the employees, whose salary is lower than the minimum wage.

For employees whose salary is below the minimum monthly wage, regardless full time or not, the employer's contribution must be paid from the income which is not lower than minimum monthly wage (400 Eur). The employee’s contributions will continue to be calculated from the basis of the actual salary.

For example, gross salary calculated for January 2018 is only 200 Eur, employer's contribution would be calculated from the minimum monthly wage i.e. from 400 Eur. Despite that, the employee's contribution will be calculated from 200 Eur.

Exceptions will be applied to employees up to 24 years old, retired, persons with disabilities and employees who work for more than one employer. The contributions of these individuals, both employer and employee parts, will continue to be calculated from the calculated wage.

The data about additional calculated contributions for employees will be submitted to companies by Sodra after the end of the month.

 

Rates decrease for social insurance contributions for fixed-term employment contracts

The social security contributions for fix term contracts decreases for fixed term employment contracts from the 1st of January, 2018.

Since 1st of January for policyholders, unemployment social insurance contributions are decreasing, their rate is differentiated to:

  • 1.4% contributions for permanent staff
  • 2,8% for employees working under fixed-term contracts (temporary, apprenticeship, project, seasonal work, work-sharing).

Total social security contributions remain the same 31,18% and for fixed term contracts is decreasing to 32,58%.