A deferral of social insurance payments for employers was approved by the Chamber of Deputies in form of an act yesterday which has been forwarded to the Senate for further deliberation.

The act concerns social security contributions and contributions to the state employment policy (i. e. 24,8 %) for the months of May to July 2020, which can be paid by the employers within an extended deadline until October 20th, 2020. Employers would thus in the meantime only pay the contribution for employees (i. e. 6,5 %) calculated from the employee´s gross salary. The employer will still be obliged to pay a penalty for non-payment of insurance contributions within the set deadline, however such penalty will be reduced by 80 %. A condition for this reduction of the penalty is the payment of the insurance contributions for employees (of 6,5%) in the full amount for the months, for which the payment of the insurance contributions was deferred, within the original statutory deadline.

We will keep you informed of further developments.