Ministry of the Family, Labour and Social Policy plans to impose social insurance contributions on civil law contracts
On 5 July 2024, the Ministry of the Family, Labour and Social Policy announced the status of work on a draft amendment to the Act on the Social Insurance System and the Act on Social Insurance for Accidents at Work and Occupational Diseases. The draft was prepared and subsequently discussed at the last meeting of the Economic Committee of the Council of Ministers. Its aim is to implement the A4.7 reform set out in the National Reconstruction Plan.
Key assumptions:
- Civil law contracts will be subject to the following compulsory social insurance schemes:
- old-age pension insurance
- disability pension insurance
- sickness insurance
- accident insurance
- An exception will be made for contracts concluded by students of secondary school students or students up to the age of 26
- In the case of specific-task contracts, the choice of sickness insurance will be voluntary.
Currently, contributions are levied on contracts of mandate if such a contract is the contractor's sole source of income. A subsequent contract of mandate, unless concluded with an employer, will not be subject to social insurance contributions if the value of the first contract does not exceed the value of the minimum wage.
However, the Ministry of the Family, Labour and Social Policy has not disclosed the details of the draft which has not yet been published. According to the provision in the National Reconstruction Plan and media information, the expected changes would come into force on 1 January 2025, so it is advisable to monitor further legislative work in this area.