Benefits providing from social insurance:

Transcription

1 Social Insurance No. 589/1992 Coll., Social Security Insurance and Contributions to the State Employment Policy Act No. 155/1995 Coll., Old Age Pension Act No. 187/2006 Coll., Sickness Insurance Act

2 Benefits providing from social insurance: 1. sickness benefits (short-term benefits for care of a family member, maternity benefits ), 2. benefits of old-age pension, 3. contributions to the state employment policy (retraining of unemployed, unemployed benefits )

3 Payers of social insurance contributions Organisation and small organisation = employers and employees. Self-employed persons. Persons voluntarily participating in oldage pension insurance.

4 Employees and employers Contribution assessment base = total month income of the employee as accounted by the employer, with the exception of non-inclusive income. Non-inclusive income: reimbursement for expenses, compensation for damages, severance pays, rewards for inventions.

5 Contribution rate: 31.5% 6.5% The employer 25% The employee 6.5% 0% 0%

6 Example.: The employee has regular month wage CZK 10,000. How much does the employer levy on social contributions? SI = 10,000 x = CZK 650 (the employee) SI = 10,000 x 0.25 = CZK 2,500 (the employer)

7 Social insurance contributions of employees: - small organisation and organisation must pay contributions that must be paid by the employees from their own income to the account of the Czech Social Security Administration. - social insurance contributions are rounded up to the next whole crowns!

8 Self-employed persons 1. Persons who perform main gainful activity. (advances) 2. Persons who perform the subsidiary gainful activity. (advances/yearly)

9 Who performs the subsidiary gainful activity: Persons who perform their activity on the basis of employment and their income here exceeds the amount of 12 x minimum wage of employees. Persons who are entitled to old-age pension and full disability pension. Persons who perform the active military service or voluntary service. Persons who are dependent chidren. Persons who obtain maternity and parental benefits.

10 Self-employed persons They are liable to notify the commencement or termination of their business activity (no later than 8th day of the month following the month when the business activity started). Since 1994 self-employers may participate in the sickness insurance system voluntarily! Contribution assessment base = 50% of I-E Contribution rate 29.2% (+2,3% of sickness, if wanted) 28% (CZK 64,813)

11 Contribution advances are payable from the first day of the calendar month to the 20th day of the following calendar month. Minimum advance (main self-employers) = 1,972 (CZK 6,752) Minimum advance (subsidiary self-employers) = CZK 789 (CZK 2,701) There is a maximum assessment base per year 48x average wage ( /year) The Summary : by the month after the deadline for the presentation of tax return.

12 Employees sickness insurance Insurance cover begins on the commencement of employment and terminates on the last day of employment. The protective period for employees who terminated an employment. It lasts at the most 7 days after the termination of employment. Employees carrying out only occasional work (less than 15 following days) are not required to pay sickness insurance contributions.

13 Outline of benefits: 1. sickness benefits, 2. short-term benefits for care of family member, 3. income support during pregnancy and maternity, 4. maternity benefits.

14 1. Sickness benefits Daily contribution assessment base = total of gross wage in the decisive period the number of calendar days in the decisive period

15 Reduction limits Three limits are set for reduction CZK 901, 1351 and CZK 2701 to the amount of CZK 888, 90% being calculated (100 % in case of maternity b.), the amount between the first and second reduction limit, 60% being calculated, the amount between the second and third reduction limit, 30% being calculated, the sum exceeding the third reduction limit is not taken into account.

16 1st 3rd day of illness without payment 4th 14th day of illness wage compensation 15th-termination of illness 60% of daily assessment base

17 Example: daily assessment base = CZK 950 The illness lasted 24 days. First three days without payment from 4th day to 14th day of illness - wage compensation by employer 15th to 24 day of illness - correction of daily assessment base = 901*0.9 + ( )*0,6 = CZK 837 (cdab) (payment then 60 % of cdab)

18 2. Maternity benefits They are provided for up to 28 weeks (37 weeks) for women who delivered child or children. The amount of these benefits is 70% of the daily assessment base (cdab). Condition for payment of benefits a woman must be insured (sickness ins.) at least 270 days within last two years.

19 3. Short-term benefits for care of family member It is provided for the first 9 calendar days. The amount payable per calendar day is 60% of the daily contribution assessment base.

20 4. Income support during pregnancy and maternity It is provided for the days when a pregnant woman or mother (for 9 months following childbirth) was assigned to another kind of work. The amount of this support = the difference between the daily contribution assessment base after and before her transfer to another kind of work.

21 Sickness insurance of selfemployed persons 1. sickness benefit, 2. maternity benefit.

22 Sickness insurance Conditions: - not to perform personally the business activity during the period when contributions are paid, - payment of insurance advances

23 Maternity benefits Conditions: a woman must be insured (sickness insurance) 270 days in last two years and also 180 days in the period of 1 year before the birth of baby,

24 Calculation of daily contribution assessment base: The decisive period for calculation is the previous calendar year. The amount of sickness benefits is counted from daily assessment base in the same way as in the case of employees.