FIN GVT, FIN STM, FIN PRL reported proposed reduction of unemployment insurance contributions for 2025, through issuance of a bill by FIN GVT presented to FIN PRL.
FIN GVT proposes amending title and section 27 of Chapter 7 of the Act on the Financing of Unemployment Benefits and the Act on Unemployment Funds.
An employee's unemployment insurance contribution will decrease from current 0.79% to 0.59% of wages, and employer's unemployment security contribution will be lower.
This will be reduced from 0.27% to 0.20% of wages if payroll is not over €2,455,500.
Above that, the unemployment insurance contribution would be 0.80% of wages.
In 2025, the employee's unemployment insurance contribution paid by the company's part-owner would be 0.30% of the wages, as well as other changes.
The employer's unemployment insurance contribution paid by the part-owner would be 0.20% of the wages, while this affects state-owned enterprises differently.
The unemployment insurance contribution of a state-owned enterprise would be 0.20% of the wages paid for business operations if payroll not over €2,455,500.
Above that, the contribution would be 0.43% of salary, and university's unemployment insurance contribution would be 0.20% of salary if payroll not over €2,455,500.
Above that, the unemployment insurance contribution is 0.49 per cent of the salary.
Payroll Limit Changes
It is proposed that payroll limits for the co-payment be changed so that the full co-payment would be collected from companies whose payroll is at least €39,288,000.
Deductible would not be collected from firms whose payroll is not over €2,455,500.
It is proposed that the payroll limits related to the obligation to pay the change security contribution be revised to correspond to the wage coefficient for 2024.
The full change security contribution coefficient for 2025 would be set at 2.2.
Effectiveness
The acts would enter into force on Jan. 1, 2025.
Dec. 2024 Update
On Dec. 5, 2024, FIN GVT said unemployment insurance contributions will decrease.
In 2025 contribution will be reduced from current 0.79% to 0.59% of the salary.
Employer's unemployment insurance contribution reduced from 0.27% to 0.20% of salary, if salary sum is max €2,455,500; for part exceeding that, 0.80% of salary.
Employment Fund's additional annual payment of €50.3 million to Social Insurance Institution to finance basic daily allowance will be waived.
Change relates to so-called channeling solution decided by GVT so savings generated by social security funds channeled to state, municipalities to reduce their indebtedness.
Unemployment insurance contributions to be confirmed each calendar year, more here.
The laws setting up the mentioned changes will enter into force on Jan. 1, 2025.
President of Republic scheduled to confirm the laws on Dec. 5, 2024.
Regulators
FIN GVT; FIN PRL; FIN STM
Entity Types
CNSM; Corp; Ins
Reference
PR 12/5/2025; Bill Prop HE 150/2024 vp, PR 10/3/2024
