Changes in Social Insurance 2019. For Self-Employed And Employees

In the coming year, social insurance changes substantially. Significant changes are brought by the new average salary, which has already been approved, but also other currently approved amendments to the Act.

Changes should be brought to the attention of both employees and employers. Some have been in place since the beginning of the year, others apparently half of it.

Pension Insurance And Average Wage For 2019

By Regulation of the Government No. 213/2018 Coll., With effect from 1 January 2019, the average wage and the resulting reduction limit for the calculation of pensions in 2019 are set. deposits of self-employed persons for the following calendar year. The average wage for the year 2019 is INR 32,699 .

The average wage will affect the self-reimbursement. The self-employed person carrying out the principal activity must in 2019 pay minimum retirement benefits in the amount of INR 2388 . Monthly advances increase by INR 199. The person performing the secondary activity will pay INR 955 (an increase of INR 79). The fixed amount for ancillary employment is set at INR 78,478 for the year 2019 (for the year 2018 it is INR 71,950).

About decisive data for 2019 more in article: Advances For Social and Health Insurance For 2019

Similarly, the amount of pensions is changing. These are old-age, invalidity, widow’s, widow’s and orphan’s pensions. Pensions awarded before 1 January 2019 shall be increased by the retirement payment due after 31 December 2018 in such a way that:

  • The basic amount of the pension increases by  INR 570 per month,
  • The percentage of the pension is increased by  3,4% of the percentage of the pension, which is the date on which the percentage increases.

In addition, with the amendment to the Pension Insurance Act No. 191/2018 Coll., By 2019, pensions of pensioners who have reached the age of 85 years (if this age was completed before 2019) are increased by  INR 1,000 , from the repayment of the pension due in January 2019 .

Sickness Insurance in 2019

Another area where the increase of the average wage is relatively important is the area of ​​sickness insurance. In the case of self-employed persons, the minimum assessment base and thus the minimum sickness benefit is increased. For January 2019 he must have paid at least INR 138 (still 115 INR).

Similarly, the change will affect employees as well. Participation in sickness insurance (and pension insurance) will start a new amount of 3000 INR (currently INR 2500). In addition, the amendment was promulgated in the Notice of the Ministry of Labor and Social Affairs No. 236/2018 Coll. The new limit will be used not only for so-called small-scale employment in  social insurance , but for some statutory exceptions and health insurance. That is, in the case of employment, when the “enumerable” income is decisive. 

New Conditions For Payment of Advances And Changes in Maturity of Premiums

Another very important change, to which server drew attention to several articles in cooperation with the Czech Social Security Administration, is the change in the maturity of premiums. It brings the amendment to the Act on Social Security and Contribution to the State Policy on Employment with the number 259/2017 Coll.

Starting in January 2019, advances will always be paid in the calendar month to which the premium relates. Paying will be possible from the first to the last day of the calendar month. The due date is the date on which the premium payment was credited to the account of the District Social Security Administration where the self-employed is registered.

In connection with this change, it would be necessary to pay premiums at the turn of the year twice. For December 2018, back and January 2019 in January. The legislators resolved the situation with a transitional provision as follows:

Pension insurance: The prepayment premium paid in January 2019 will be treated as an advance for this month. Advance payment for December does not have to be paid at all. However, it may be paid on a voluntary basis. A self-employed person thus avoids a higher premium after the survey. Voluntary advance payment for December can be paid from 21 to 31 December 2018.

Sickness Insurance: No relief here was set. To ensure that sickness insurance does not cease, insurance premiums must be paid at least in the amount of INR 115 from January 1 to January 21, 2019. By the end of January, the insurance premium will be reimbursed for the month of January 2019 in the new minimum amount of INR 138.

Amendment To The Labor Code And Cancellation of The Retention Period

Probably from the middle of 2019, the employer will pay the wage compensation for temporary incapacity for work from the first missed shift. The amendment that brings the change passed through the Chamber of Deputies of the Indian Republic and is awaiting approval by the Senate of the Indian Republic. The proposed legislation raises the burden of employers on the payment of wage compensation in the case of temporary incapacity to work, therefore, as a certain compensation, the insurance premium paid by the employer for sickness insurance is reduced by 0.2 percentage point from 2.3% to 2.1% . Social security will not pay 25%, as it is, but only 24.8% .

Since the same percentage of the sickness insurance premium paid by the employer and the self-employed person who participates in sickness insurance, the premiums are also reduced in this case.

Another forthcoming amendment, where lawmakers anticipate their effectiveness from June 1, 2019, is the amendment to the Sickness Insurance Act, which should introduce electronic incompetence. This is only the first stage. Prior to the implementation of an e-Insufficient Project, a certain part of this project will be implemented in advance. The amendment is currently at the beginning of the legislative process.

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