We would like to inform our clients about the increase in Social Insurance Funds and the implementation of the new National Health Insurance System (NHIS).
Social Insurance Contributions Increase
As from 1 January 2019, both employer and employee contributions on insurance earnings to the Social Insurance Fund will increase by 0,5%, from 7.8% (currently) to 8.3%. Similarly, the contributions paid by self-employed individuals will increase by 1%, from 14.6% to 15.6%.
Commencement of the National Health Insurance System (NHIS)
According to the National Health Insurance System Law of 2010 (as amended in 2017), employer and employee contributions for the implementation of the NHIS shall commence in 2019.
Specifically, as of 1 March 2019, employers will contribute 1.85% on their employee’s earnings, and the employees will contribute 1,70%. The employer is responsible for paying both their own and their employees’ contributions through the Social Insurance Fund, by means of deduction.
The NHIS contributions are paid on all employee earnings (as defined in the Social Insurance Law) up to €180.000. The limit applied to Social Insurance Contributions (currently at €54.396) does not apply to NHIS contributions.