Changes to mandatory state social insurance contributions (VSAOI) from 1 July 2021

- A minimum contribution base for mandatory state social insurance contributions of EUR 1,500 per quarter (EUR 500 x 3 months) is introduced. This means that, during a quarter, at least EUR 511.35 in mandatory state social insurance contributions must be paid for an employee (500 x 34.09 % x 3). All income on which mandatory state social insurance contributions have been made is aggregated for the person. The difference is paid from their own funds by the employer or several employers in proportion to the employee’s income and period of employment.

- The State Social Insurance Agency (VSAA) calculates the minimum mandatory state social insurance contributions for the third quarter and, by 20 December, provides the information to the State Revenue Service, which notifies employers of this information in the Electronic Declaration System (EDS) within one day. Employers are required to pay the minimum mandatory contributions within three months of the date on which the notification is received.  

- Self-employed persons pay 10 % for pension insurance instead of the previous 5 %, but on an amount of not less than EUR 1,500 per quarter (EUR 3,000 per half-year).

- Self-employed persons may make the minimum mandatory state social insurance contributions based on their actual income if they submit to the State Revenue Service a statement of their planned income: by 15 July 2021 for the third quarter and by 15 October for the fourth quarter. If no statement is submitted, the minimum must be paid. 

- The payer of an author’s fee withholds 25 % of the author’s fee. Of this amount, 80 % is allocated to the recipient’s social insurance (pension insurance, disability insurance, maternity and sickness insurance, health insurance and parental insurance), while 20 % is allocated to personal income tax. If a person receives only an author’s fee and its amount for a half-year does not reach the minimum contribution base for mandatory state social insurance contributions, the recipient of the author’s fee must pay 10 % for pension insurance on the difference between the author’s fee and the minimum contribution base for mandatory state social insurance contributions. The procedure previously in force applies to contracts concluded by 31 December 2020.

- The special-care allowance and the allowance to compensate transport expenses for persons with disabilities or persons caring for a child with a disability who receive from the VSAA a disability pension, state social security allowance in the event of disability, or an additional payment to the family allowance for a child with a disability, will be granted without an application from the person, solely on the basis of information provided by the State Medical Commission for the Assessment of Health and Working Ability concerning the medical indications established for the person. 

- Payment of the granted special-care allowance will not be discontinued for persons receiving long-term social care and social rehabilitation services at municipal and private social care centres  (hereinafter – SAC), except where the person’s receipt of services at the SAC is financed from the state basic budget. 

- The allowance for the maintenance of a child under guardianship has been increased—to EUR 215 per month until the child reaches seven years of age (currently EUR 107.50), and to EUR 258 per month from the age of seven until the child reaches 18 years of age (currently EUR 129.00).