THE BUSINESS Alliance of Slovakia (PAS), which represents businessmen and entrepreneurs, has proposed simplifying the system of paying compulsory health and social insurance contributions, arguing that the present system is a barrier to the development of Slovakia’s business sector.
PAS suggests that payments into social and health insurance funds should be paid from employees’ so-called super gross wage, the SITA newswire reported.
They want employees’ wages to be increased by the amount that their employers currently pay in insurance premiums, and for employees to be responsible for paying all their own insurance premiums. Another step the PAS proposes is the unification of six separate payments which employers currently have to make annually into the basic funds of the social insurance scheme into one 25-percent social payment paid from the super gross wage.
Moreover, they also want to see health insurance payments set at 10 percent of the super gross wage. PAS suggests unifying the maximum calculation bases for these insurance payments to three-fold the average super gross wage in the respective year. Apart from this, PAS wants to make unemployment insurance voluntary for employees, just as it now is for the self-employed.
PAS President Martin Krekáč said, as reported by SITA, that the proposed measures will not only simplify the system and make it more transparent, but may also lead to the lowering of compulsory insurance payments. A simpler system of social and health insurance payments will motivate people to pay, he said.