Global News Brief

Effective October 1, 2009, employers’ total social security contributions are required to be paid gradually, within three fiscal years from the company’s incorporation. Also, effective October 1, 2009, companies covered under partial unemployment benefit will be granted favorable credit terms for their contributions.

Key Details

The main features of the new regulations are as follows:

•  Companies starting operations after September 30, 2009 will have to pay 25 percent of the mandatory pension contributions of 7.5 percent of monthly wages during the first fiscal year, 50 percent during the second year and the full amount from the third year onwards.
• The government may also grant this benefit to companies starting operations after January 1, 2008, if found convenient.
• Furthermore, companies covered under partial unemployment benefits will be allowed to pay their social security obligations in up to 12 monthly installments.