Annual settlement of pension levies to be abolished
Labor Minister Milan Krajniak (Sme rodina) proposed abolishing the annual settlement of pension levies. He claims the reason is the planned tax and payroll levy reform, but in fact social insurer SP is unable to change its IT systems. The annual settlement was meant to increase the SP’s revenues by €50m annually, with high earners footing most of the bill. Parliament approved it in 2018, setting its launch date at 2021 (the deadline was later moved to 2024).
The annual settlement of health insurance has been in place since 2005.
