New minimum prepayments for health insurance contributions apply from January 2023
From 2023, every employee, as well as statutory representatives with management contract, will pay the minimum amount of health insurance which is derived from the sum of substance minimum valid on the first day of the calendar year.
Effective from 1 January 2023, a new Article VII. of the Act no. 518/2022 Coll. amends the Act No. 580/2004 Coll. on medical insurance and introduces the minimum health insurance contributions for the employee. As a result, beginning with the calendar year 2023, every employee, including statutory representatives with management contract, will pay the minimum amount of health insurance. This amount is derived from the sum of substance minimum valid on the first day of the calendar year.
The Slovak parliament approved the amendment to the Act no. 580/2004 on medical insurance (hereinafter “the act”) at the end of 2022. New sections § 13b and § 16a relate to the minimum insurance contributions and the minimum prepayment for the employee.
We would like to emphasize that the act does not change the minimum assessment base for health insurance that apply to self-employed person, voluntary unemployed persons and self-payers. The minimum assessment base for these persons amounts to EUR 605,77 and the monthly prepayment for health insurance contributions represents EUR 84,77 for the calendar year 2023.
According to the amended act, the minimum insurance contributions for employee represents the sum of employee’s contributions and employer’s contributions of the amount of 12-times of substance minimum valid on the first day of the calendar year. For the calendar year 2023, minimum insurance contributions of the employee are as follows:
- Employee’s minimum contributions: 4% of the amount 12*234,42 EUR = 112,52 EUR per year (or 9,37 EUR per month),
- Employer’s minimum contributions: 10% of the amount 12*234,42 EUR = 281,30 EUR per year (or 23,44 EUR per month).
Thus, the total minimum employee insurance contributions for 2023 will reach the amount of 393,82 EUR and the minimum monthly prepayment for the employee will reach 32,81 EUR. Since the amendment is effective from January 1, 2023, the minimum prepayment does not apply to employee’s income for December 2022, which is usually paid in January 2023; however, it applies only to income for January 2023. The minimum contributions are lowered by proportional part corresponding to number of calendar days during which the employee was insured by the state, was a disability person, was declared as a missing person or was not considered as an employee.
The main intention of this amendment is to eliminate speculative transactions with a low gross income or a low remuneration of a statutory representative. In a case that health insurance contributions are lower than the amount of the minimum prepayment, the employee is obliged to pay the difference. Please note that the employer does not have to increase the employee’s income in such level that minimum prepayment was paid. Consequently, the act stipulates the obligation to pay prepayment for health insurance contributions for employee at the level of the employee’s minimum contribution, at least.
In this context, the Ministry of Health of the Slovak Republic published on its website new forms for monthly statements of contributions for public health insurance, which include items for prepayment of the employee determined from the assessment base for insurance contributions, non-application of the minimum prepayment for insurance contributions and calculation of the amount missing to the minimum prepayment. Please find new templates on the following link.