I am an employer

 Published: 30.12.2020. 13.21

  • What is the minimum wage?
    • Minimum wage has increased from EUR 430 to EUR 500 per month. The non-taxable minimum will be applied to taxpayers whose annual income does not exceed EUR 21 600 euros (EUR 1800 per month).

  • How do I deduct PIT and SSIMC from employees’ salaries?
    • In 2021, the personal income tax (PIT) rate has been reduced from 31.4% to 31%.

      The tax rate of 31% is applied when submitting an annual income tax return, unless the employee has been issued an A1 certificate (or a document from a foreign authority) and pays mandatory social insurance contributions in another EU or EEA country. If mandatory social insurance contributions are made in another Contracting State and the person’s income exceeds EUR 5233.33 per month, a progressive tax rate of 31% shall apply on monthly income exceeding EUR 5233.33.

      Mandatory state social insurance contributions (SSIMC) have been reduced by a total of one percent - 0.5% for employers and 0.5% for employees.

      As of 1 July 2021, minimum mandatory contributions will be introduced.

      If an employee's annual quarterly salary is less than EUR 1500 (3 minimum monthly wages), the employer must make mandatory contributions from his/her own resources to make up the difference.

      The State Social Insurance Agency (SSIA) will calculate the minimum mandatory contributions to be made by the employer (within three months after the reporting period) and notify SRS (by the 20th of the third month).

      SRS will inform the employer through EDS of the minimum contributions calculated by SSIA within one business day.

      The employer must make the minimum mandatory contributions for employees by the 23rd day of the third month of the quarter following receipt of notification (general rate - 34.09%).