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Government approves 'super-gross salary' proposal

The government, at an extraordinary session on Friday, August 19, approved the concept of the so-called super-gross salary. The concept is designed to make the tax and payroll deduction system more transparent and simple, the TASR newswire wrote. One result of the change would be to increase the indicative gross salaries of employees to reflect the amount of payroll deductions (principally, compulsory social insurance and health insurance levies) that their employers are required to deduct. The change is not supposed to result in higher payments by employers.

The government, at an extraordinary session on Friday, August 19, approved the concept of the so-called super-gross salary. The concept is designed to make the tax and payroll deduction system more transparent and simple, the TASR newswire wrote. One result of the change would be to increase the indicative gross salaries of employees to reflect the amount of payroll deductions (principally, compulsory social insurance and health insurance levies) that their employers are required to deduct. The change is not supposed to result in higher payments by employers.

Under the proposal, there will henceforth be three ways of calculating levies depending on salary level and type of employment contract, resulting in different rates of social insurance. The highest, 19-percent, rate will apply to employees who receive a regular monthly salary. Such employees will be entitled to medical benefits and unemployment benefits. Employees with irregular incomes, dividend incomes or who are self-employed will pay social deductions of 13 percent, while people working based on one-off contracts will pay 10 percent.

Source: TASR

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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