Saturday , July 31 2021

With a "trap" for the reduction of pension funds, it eases the contribution to 250,000 casual workers

Obtained 250,000 insured from a total of 1.4 million entrepreneurs with a reduction in contributions from 1/1/2019 provided in the Ministry of Labor bills saved overnight in the DPR. The benefits range from 200-4,690 euros per year. Together with 37 bill articles, other issues such as debt payments for health insurance funds have been included in EOPYY, as well as unemployment movement with public transportation through OAED's special program.

Look here for the entire bill

Help for freelancers will start with the insured with annual taxable income of more than 7,032 euros. Reducing the main pension contribution from 20% to 13.33% of insured profits gives breath to former OAEE insurance companies because they get a percentage of 12.45% to 33.35%. The minimum contribution for the pension industry will be set at € 117.2 per month. This software is ready and will start charging new contributions from the early days of 2019.

The insurance premiums for major pensioners also decreased by 33.3%: to 12% from 18% on 1/1/2019. Contributions are set at 12.67% in 2020, 13% in 2021 and 13.33% from 2022 and above.

Insurance premiums for primary retirement of young scientists for the period up to the 5th year of their income in insurance decreased from 2019 to 13.33%, improving the current rebate scheme.

The most profitable are freelancers with annual gross income (net profit + contributions) between 7.033 – 9,346 euros, because with the new scheme they will pay a minimum contribution of 157.9 euros per month (117.2 for pensions and 40.7 for health) and not a new overall rate of 20.28%.

Conversely, for mixed profits between 70,331 and 93,462 euros, a proportional rate (20.28%) will be applied, while a maximum annual contribution of 18,953.4 euros will be charged. This means that it will be more burdensome for anyone who earns more.

It should be noted that the projected increase in the current minimum wage starting January 1, 2019 will adjust the increase in the minimum monthly insurance contribution for self-employed / self-employed people. The amount of costs will depend on the rate of growth of wages that will be decided.

At the same time, for engineers, lawyers and self-employed doctors, the bill would provide a reduction in subsistence and lump sum contributions, calculated as a percentage (7% for subsistence and 4% at once) from basic gross wages, euros.

The minimum contribution for a subsidiary is € 41 / month (7% x € 586), while the minimum contribution for a one-time amount is € 23.4 per month (4% x € 586).

For example, an entrepreneur with an annual income of 20,032 euros in January 2019 would pay: 173 euros premium for a main pension, 115 euros for ECHP and 64.5 euros for aid and a lump sum. A total of EUR 352.5, with the previous regime in force in 2019, will pay EUR 469.

However, each insured person in this category must pay every month, over and above the current contribution to pension and primary health payments (EFCA-EEYYY), additional and lump-sum payments, retroactively from contributions from the previous two years, / 2017, but they have never been taken into account.

In order not to submerge self-employed scientists, the bill would provide payment of retroactive payments in 36 monthly installments. That is, the profits from discounts for the next three years (36 installments) will be greatly reduced.

Boomerang to reduce pension contributions

Freelancers who have suffered in the past two years can take a breath from the contribution of rebates to 33.3%, but when they make funds when they retire, they will find themselves an unpleasant surprise. The draft law on reducing social security contributions submitted last night to the DPR noted that there would be a reduction in the number of pension contributions. Those who pay lower contributions will have an impact on the expected pension. According to experts in the ministry, additional pensions and lump sums will be converted. The bill, however, allows policy holders with applications to EMFF to pay higher premiums and to "build" hopes for higher pensions. For example, a lawyer earning € 20,032 rather than paying a minimum insurance premium of € 64.5 can pay a contribution that supports the amount of extra money in accordance with his income of € 183.6 per month.

However, insurance specialists believe that paying higher premiums is not a profitable step because the rate of return on the system continues to decline and those who provide extra money for public insurance will never return.

The rest of the provisions

Other provisions of this bill allow those who have obtained notional time before May 13 2016 (the entry into force of the Portuguese Law) and have not applied for retirement, to pay the difference between the cost of the old acquisition and new fees, to increase the base to calculate their pensions.

– Specific provisions are made for widows retiring in the event of a natural disaster and it is determined that with the disappearance of the Katrugala law, pensions will be given to the beneficiaries (i.e. 100%). The power of the device was set in May 2016 and that included death at Mandra and Mati.

– The first employee gets the right to appear as a civil prosecutor in the criminal proceedings against the employer because he does not pay salary payments or accrued redundancy payments.

What is provided for health care debt payments

Provisions for health insurance insure a procedure for clearing and payment by EMFF until 31/12/2019 arrears of debt from 2006 onwards and for which documentary evidence has been issued – for pharmacies, other contracts for private health care providers, pharmaceutical companies, health suppliers and other equipment, etc., as well as social security guarantees.

The debt for the insured person will be paid 100%. However, for health care providers, a significant haircut is planned. At the same time, it is planned to conduct an in-depth audit by the competent authorities of EFC to issue relevant money orders to expedite the process of payment of this obligation.

The deduction rate for debt, before VAT, to private health care providers is determined as follows:

a. Diagnostic Center – Laboratory:

aa) For monthly debts of up to € 15,000, a discount rate of 5%.

(bb) For monthly debt of more than EUR 15 000, the deduction rate is 10%.

b. Personal Clinic, Recovery and Rehabilitation Center, Chronic Dialysis Unit for Hospital Costs 10% discount rate.

c. Contracted Personal Doctor:

aa) For monthly debt amounts up to 4,000 Euros a 5% discount rate.

(bb) For monthly debt of more than EUR 4 000, the deduction rate is 10%.

Suppliers of Health and other ingredients at a 25% discount rate, for special hospital material costs (laparotomy materials, orthopedic, cardio-invasive, intraocular, breast pads, pottery materials, etc.).

e. Other health care providers contracted (physiotherapists, speech therapists, etc.) 5% discount rate.

Pharmaceutical company with an 8% discount rate.

Pharmacy 3.5%.

Other arrears resulting from any balance due to prepayment are paid for debts of up to € 15,000 with a discount of 20% and for debts of more than € 15,000 with a 45% discount on the transaction value (document value before VAT), the remainder, after deducting the down payment
Attached to the draft law

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