Every year the pension and wage limit for Sickness and Accident Insurance (ZV/OV) are adjusted in accordance to the development of the cost of living (price index). The adjustment is based on the increase of price index of August of the preceding year.
The Social Insurance Bank in accordance to the law sent a proposal to the central government regarding the increase of the wage limits, old pension and widows and orphans pension. According to the calculations of the Central Bureau of Statistics (CBS) cost of living increased by 3.6 %. This means that the wage limit for 2010 is Nafl. 4.764,50 per month.
Further more we have to state that next to the adaptation to the cost of living parliament also approved the extra increase of the old age pension for 2010 to Nafl. 800,–per month. The amounts for widows and orphans pension have also been increased.
All the social premiums have remained the same as the previous year.
The income ceiling over which AOV premium has to be paid has also been increased to Nafl. 80.336,– annually. If you have an income that exceeds the limit you have to pay premium up to this limit. The annual wage limit for Sickness and Accident Insurance is Nafl. 57.174,–.
The gross wages of employees already in service of the employer is determined on the reference date which is November 1st of every calendar year. If the wage is less or equal to the wage limit of the next year the employee will remain insured for the whole year for Sickness Insurance notwithstanding any wage changes during the year.
The wage limit does not have any influence on the Accident Insurance taken the fact that all employees are insured but the employer pays the premium up to the wage limit.
Enclosed you will find the complete table with all amounts and premiums for 2010.
THE PENSIONS, ALLOWANCE, PREMIUM PERCENTAGES, WAGE LIMITS AND CONTRIBUTION OF SOCIAL INSURANCES
2010
WIDOWS- AND WIDOWERS PENSION: OLD AGE PENSION:
up to and incl. 39 years Nafl. 370,- pension Nafl. 800,-
40 up to and incl. 48 years Nafl. 485,- allowance (max) Nafl. 548,-
49 up to and incl. 57 years Nafl. 607,-
58 en 59 years Nafl. 800,-
ORPHANSPENSION:
HALF ORPHAN FULL ORPAHN
0 up to and incl. 9 years Nafl. 268,- Nafl. 292,-
10 up to and incl. 14 years Nafl. 292,- Nafl. 320,-
15 up to and incl. 24 years Nafl. 320,- Nafl. 369,-
PREMIUMS (expressed in percentages of the wages):AOV 13% employers portion: 7,00%
employees portion: 6,00%
AWW 1% employers portion: 0,5%
employees portion: 0,5%
OV 0,5 – 5% depending o the risk class and completely on account of the employer
ZV 12,5% employers portion: 8,3%
employees portion: 2,1%
governments’ portion: 2,1%
PREMIUM-INCOME LIMIT FOR AOV AND AWW AND AWW: Nafl. 80.336,00
WAGE LIMIT FOR ZV AND OV:
per day (6-days workweek) Nafl. 183,25
per day (5- days workweek) Nafl. 219,90
per week Nafl. 1.099,50
per month Nafl. 4.764,50
per year Nafl. 57.174,00
CESSANTIA CONTRIBUTION: Nafl. 40,- per employee per year