Ministries mulling over new payroll tax

THE LABOUR ministry is considering changes to the payroll -taxe system allowing employees to cover their mandatory social and health insurance costs in full, instead of sharing them with their employers, SME daily wrote.

In line with proposals made by the economist Richard Sulík, employers would raise their employee's salaries by the amount they currently pay in payroll taxes. "The main effect of this would be to simplify the system," said Sulík.

For its part, the ministry would oblige employers to raise salaries via an amendment to the Labour Code.

Another proposal considers the effect of transferring the collection of social-insurance payments from the national pensions provider Sociálna poisťovňa (SP) to the tax authorities. SP director František Halmeš approves of this measure, viewing it as a good way of overhauling the current system.

Sulík believes that social-insurance legislation could be amended according to his proposals as early as this July. However, the ministries concerned plan to release an analysis of the proposals no earlier than next year.

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