Employers Can Postpone Contributions, and Pensions Will Decrease: Authorities Seek a Solution 0 14

According to current regulations, employers can apply for an extension of the deadline for paying mandatory state social contributions (OVGSS). However, this measure directly affects the pension insurance of employees.

On Tuesday, the government reviewed and approved, without discussion, a conceptual report "On Extending the Deadlines for Paying Mandatory State Social Contributions and Its Impact on the Amount of Old-Age Pensions." The document notes that although an employee can voluntarily make contributions for the period when the employer did not, in practice, most employees do not have such funds and also lack information about the deferral granted to the employer. Only a few have taken advantage of this opportunity, indicating its limited effectiveness.

According to the State Social Insurance Agency (GASS), as of August 1, 2024, only 100 people independently made contributions to pension insurance - the amounts ranged from 3.60 to 3556.80 euros. Most of these were individuals with less than 30 years of insurance experience. The report also mentions that in the initial version of the law "On Taxes and Fees" from April 1, 1999, a taxpayer could request the tax administration to extend the deadline for paying overdue taxes.

During the COVID-19 pandemic, additional support measures were introduced, including the extension of tax payment deadlines. Currently, the State Revenue Service (SGD) no longer provides extensions for tax payments based on the COVID-19 law. As before the pandemic, the SGD can extend tax payment deadlines (including OVGSS) based on a reasoned written request from the taxpayer, dividing the debt into several deadlines or deferring it depending on the reasons for its occurrence, nature, and amount of the debt.