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Payroll levy changes discussed before second reading in Slovakia’s parliament

Officials of Slovakia’s Ministry of Labour, Social Affairs and Family can foresee an 18-percent mandatory payroll deduction for social insurance rather than the currently-proposed rate of 19 percent, said the ministry’s spokesperson, Slavomíra Sélešová, as reported by the TASR newswire. Sélešová was speaking in response to a suggestion presented by employers' organisations at a press conference on October 10 to decrease the overall payroll levy, together with other measures that could compensate for the lost revenue. The ministry spokeswoman said the employers’ proposal is logical.

Officials of Slovakia’s Ministry of Labour, Social Affairs and Family can foresee an 18-percent mandatory payroll deduction for social insurance rather than the currently-proposed rate of 19 percent, said the ministry’s spokesperson, Slavomíra Sélešová, as reported by the TASR newswire.

Sélešová was speaking in response to a suggestion presented by employers' organisations at a press conference on October 10 to decrease the overall payroll levy, together with other measures that could compensate for the lost revenue. The ministry spokeswoman said the employers’ proposal is logical.

"But the finance ministry has to be the first to take a stance on it as these changes would have a big financial impact. If the finance ministry okays the proposal, the labour ministry can imagine supporting it," said Sélešová, pointing to certain offsetting measures that would also need to be approved by the country’s four-party Coalition Council.

The employers’ suggested change would increase salaries of employees by around 2 percent with a loss to state revenues of about €190 million so the employers proposed measures to compensate for the lost revenue that involve persons employed on special contracts or the scrapping of child allowances for higher-income families.

Representatives of the Association of Employers' Unions (AZZZ), the Slovak Trade and Industrial Chamber (SOPK) and the Republican Union of Employers (RÚZ) jointly announced the proposal.

The Sme daily wrote that the finance ministry also likes the employers' proposal, adding that the ministry is also considering increasing the deductible lump-sum allowance from self-employed individuals’ income tax calculations from €200 to €400 monthly.

The self-employed are asking for an even higher deductible amount and there was no agreement on this point at the labour ministry on October 10 when representatives of self-employed individuals and the OKS faction of Most-Hid party were negotiating this issue once again with the labour ministry.

A bill introducing changes in the payroll levy system will soon go to its second reading in parliament, Sme wrote.

Source: TASR, Sme

Compiled by Zuzana Vilikovská from press reports
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