BRATISLAVA, August 10, (WEBNOVINY)- Parliament approved on Friday an increase in social and health insurance levies for the self-employed and people working as contract agents. The minimum assessment base for the self-employed to calculate social and health insurance contributions from the beginning of next year will increase from the current 44.2% of the average wage to 50% of the average wage in Slovakia two years ago. Minimum social and health insurance contributions for self-employed since the start of next year will rise from the current euro to 160.24 euro 185.3.
The current 40-percent flat-rate deductible tax expense for the self-employed will be replaced by a cap of 420 euros per month. At the same time, gradually over three years, present coefficients will be reduced, 2 in social insurance and 2.14 in health insurance, which are used as denominator to divide the tax base when calculating the assessment base to pay social and health insurance contributions. They will be replaced by a common coefficient of 1.486. In 2013, the coefficient of 1.9 will apply, in the following year it will be 1.6 and in 2015 the final coefficient will be 1.486.
A significant change to the detriment of the self-employed is that unlike until now, the assessment base will not be calculated from a tax base reduced by paid social and health insurance contributions. The new assessment base will be the tax base not lowered by contributions paid to social and health insurance. Higher levies also await people who earn more than 1,200 euros per month. SMER-SD party is increasing the maximum assessment base for the payment of social security and health contributions to 5-times the average wage.
SITA
