Tuesday , August 16 2022

New Reduced Contribution for Professional Examples


Reduced charges for approximately 250,000 self-employed workers predict a government account that is expected to be presented within the week of the House.

This is one of Alexis Tsipra's commitments to TIF. It will be filed within a week in Parliament and the reduction of contributions will come into force from 1/1/2019.

It is estimated that the profit for the professionals affected by this bill varies between 200 – 4 690 euros per year.

The basic provision for social insurance contributions for self-employed workers will stipulate that the primary insurance premium will be reduced from 20% to 13.33%, while maintaining the current minimum contribution to 117.2 euro per month (20% of minimum wage).

In 13.3%, the contribution for young researchers is up to 5 years, while farmers pay contributions 2019 to 12%, 2020 to 12.66%, 2021 13% and 2022 at 13.3%.

It should be noted that from 1 January 2019, the basis for calculating social security contributions plus gross income – without deduction for grants already paid for net taxable income, is changed to 100% of the amount and not at 85% this year.


As the ESEE points out, according to the current scheme from 1 January 2019, up to annual income (net income + insurance) of 7 032 euros, the person responsible would pay the lowest annual contribution, ie 1 895.4 euro (monthly minimum amount 157, 9 euro * 12). Of this amount and up to € 70,340, the fee is calculated proportionally (net income + insurance charges) * 26.95%, while the highest annual contribution of EUR 18,953.9 will be introduced from EUR 70,331.

With the promotion provision, from 1/1/2019 through annual income (net income + insurance) of 9 346 euros, the debtor pays the lowest annual contribution, ie. 1 895.4 euro (one monthly minimum contribution of 157.9 euro). Of this amount up to EUR 93,462, the contribution is calculated proportionally (net income + insurance premiums) of 20.28% (13.33% in favor of pension + 6.95% for health), while 93,463 exceeds the maximum annual contribution of 18.953.9 Euro.

From the above comparison, according to the ESEE, from the new provision, favored will be self-employed / self-employed with annual gross income (net profit + contribution) between 7,033 – 9,346 euroswhereas, according to the current scheme in 2019, the proportional percentage of 26.95% should be charged to this revenue step, with the new 1/1/209 system paying the lowest annual contribution of 1,895.4 euro (or monthly 157.9 euro ) and not the new total interest rate of 20.28%.

With the new mixed income program (net profit + contribution) of more than € 9,346 and up to € 71,000, the real average contribution for average and higher income contributions is between 22% and 24.3%.

Based on the upgraded changes, for gross profit between 70,331 and 93,462 euros, proportional coefficient (20.28%), while the highest annual contribution of 18.953.4 euros would have been introduced. For the scale of this scale (€ 23,131), more will pay for the winner.

Note that the estimated increase of current minimum wage (586.08 € gross) from 1/1/2019 will adjust upward to the minimum monthly insurance contribution for self-employed / self-employed persons. This development will of course entail an increase in the contribution for the vast majority of self-employed people who pay the lowest contribution today.

Lawyers and engineers

Attorneys and engineers are expected to benefit from the triple bubble from the reduction of primary, supplementary and non-recurring fees. This is because the primary premium contribution is reduced to 13.3% from 20% while supplementary and lump sums are set at a fixed amount calculated at 7% and 4% on minimum wage regardless of income, ie. 41 euros for help and 23.44 for one-time.

For example, an engineer or lawyer with EUR 20 032 of income for primary insurance would have to pay 230 euros per month from the beginning of 2019. Now, with the new system, it will pay 173 euros. For a one-time fee, from € 124 per month, you will have to pay € 64.5. The annual benefit of all savings is in the order of € 1 401 (-32.96%). The health tax remains stable at 6.95%. For an annual income of EUR 40,000, the annual contribution is 3,775 euro, while for income 60,000 euros amounts to 10,734 euros.

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