Exemption of payment of contributions for young people
EXERCISING THE RIGHT TO EXEMPTION FROM PAYING CONTRIBUTIONS FOR YOUNG PERSONS
Pursuant to the Contributions Act (Official Gazette, 84/08, 152/08, 94/09, 18/11, 22/12, 144/12, 148/13, 41/14, 143/14, 115/16, 106 / 18, hereinafter: the Act) an employer who concludes an employment contract with a young person for an indefinite period of time for a period of up to five years is obliged to calculate only the contributions from the base rate, as follows:
- Pension insurance contribution at a rate of 20%, or at a rate of 15% for a pension insurance policyholder based on individual capitalized savings,
- Contribution for pension insurance based on individual capitalized savings (for the insured person) at the rate of 5%,
that is, in the specified period of up to 5 years, there will be no obligation to do payroll for and pay contributions on a base basis, as follows:
- Health insurance contribution at the rate of 16.5%.
A young person is a natural person:
- whom the employer on the basis of the employment contract concluded for an indefinite period registers for the mandatory pension insurance and mandatory health insurance, and
- whom to the date of commencement of insurance is less than 30 years of age, and
- whom up to the date of employment agreements had no previous employment contract of indefinite duration with the same employer.
The following conditions are essential:
- The employment contract is concluded with a person no older than 30 years of age,
- The employment contract must be concluded for an indefinite period of time, and
- The young person not older than 30 years of age has not previously had an open-ended employment contract with the same employer.
Ministry of Finance
Phone: +385 1 4809 000