Following our alert isued on 20 May 2021, we note that the Minister of Labour, Welfare and Social Insurance, exercising the powers conferred to her by the relevant law, issued two Administrative Decrees (No. 212/2021 and No. 213/2021), which were published on 21 May 2020 in the Official Gazette of the Republic.

Administrative Decree No. 212/2021

As per the decree 212/2021, the Minister of Labour, Welfare and Social Insurance announces that the Settlement of Overdue Social Contribution Laws 2016 – 2021 ("the Law") will apply to liabilities relating to the following:

i.  in relation to employers, it includes overdue contributions up until March 2021 (inclusive), which are payable by the end of April 2021;

ii.  in relation to self-employed, it includes overdue contributions up to the fourth quarter of 2020 (inclusive), which are payable by 1st March 2021.

Administrative Decree No. 213/2021

As per the decree 213/2021, the Minister of Labour, Welfare and Social Insurance announces that individuals and companies, who wish to regulate their overdue contributions, may submit an online application (form SIS O.C.1) during the period 21 May 2021 – 20 September 2021.

We note that the overdue contributions can be settled in 54 monthly instalments. However, in the event that the applicant elects to pay the overdue contributions in a lump sum, they are released from the obligation to pay the full penalty imposed in respect of these contributions.

Additionally, in case the overdue contributions are paid in less than 54 monthly instalments, 1/54 of the amount of the penalty is waived for each month which is paid earlier than the 54 instalments (e.g. if the overdue social contributions are paid in 24 monthly instalments then 30/54 of the total amount of the penalty is waived).

The minimum amount of each monthly instalment is:

a)       for overdue contributions up to €500, the monthly instalment is €25

b)      for overdue contributions from €501 to €1.000, the monthly instalment is €50

c)       for overdue contributions in excess of €1.001, the monthly instalment is €75

In order for the regulation to be valid, in addition to the monthly instalments, all current due contributions must be timely paid. Current contributions are considered to be:

  • for employers, the contributions as of the month of April 2021 (inclusive) onwards and,
  • for self-employed, the contributions as of the first quarter of 2021 (inclusive) onwards.

It is noted that for the purposes of applying the Law:

"overdue contribution" is the social contribution for which the deadline for settlement has expired.

"social contribution" is the contribution which is payable in accordance with the Social Insurance Law, the Annual Leave with Remuneration Law, the Termination of Employment Law, the Social Cohesion Fund Law, the General Healthcare System Law and the contribution which is payable in accordance with Article 20 of the Human Resources Development Law.

Lastly, we note that the above-mentioned decrees are effective as of 21 May 2021.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.