The service members will not pay mandatory state social insurance contributions from the compensatory payments related to their work. Such an amendment was adopted by Parliament in the final reading on June 22, IPN reports.
So, mandatory state social insurance contributions, including the individual contribution of 6%, will not be calculated from the lump-sum paid to service members employed on contract, in case of transfer to another permanent place for doing the military service in another settlement and from the stipend paid to conscripts, students of military education institutions and others.
The amendment was proposed following changes made to the legislation, which oblige the service members employed on a contract basis, persons from the command and troops of the internal affairs bodies and from the penitentiary system to pay mandatory social insurance contributions as of January 1, 2017. As a result, those who employ these categories of people calculate and pay the contribution owed by the employee in the amount of 23% and 6% – individual contribution paid on salary and other recompenses.
The same law provides that the private individuals who carry out independent activities in retail trade will pay mandatory state social insurance contributions in the form of a fixed tax that enables to get a minimum pension and death benefit.
