BRATISLAVA, August 1, (WEBNOVINY) — The legislative proposal of the tax and levy reform suggests that the government should provide the state-run social security provider Socialna Poistovna with almost EUR 36.2 million for payment of social insurance premiums to the second pension pillar that employers have not paid to the social insurance company on behalf of their employees. This stems from the proposed budget of Socialna Poistovna for 2012. The legislative proposal of the tax and levy reform also projects state’s settlement of unpaid contributions via the Finance Ministry’s chapter. Contributions that employers pay after the state settles them should be considered state budget’s revenues. The Finance Ministry disagrees with such procedure. “Guaranteeing activities of entities that fail to meet their legal obligation is above the scope of the law on the state debt and state guarantees,” stated the ministry during the interdepartmental review of the draft bill on income from gainful activity.
Contributions that employers have failed to pay to the second pension pillar are covered from the guarantee insurance fund in line with the currently effective legislation. These outstanding social insurance premiums should total EUR 34 million this year. The tax and levy reform suggests abolishing this fund as well as guarantee insurance as of the beginning of next year. The guarantee insurance will be replaced by a guarantee benefit as a form of social benefit that the state will finance directly from the state budget from the increased income tax revenues. The state plans to pay out the benefit to employees of insolvent employers in the same form as it does at the moment.
SITA
