Reserve Service - Deductions from the benefit payment

Deduction of National Insurance and health insurance contributions, income tax, payments to a provident fund and pension funds, differentials for self-employed workers.

Deduction of National Insurance and health insurance contributions

 A salaried employee who receives the benefit from his employer - National Insurance and health insurance contributions are deducted from the benefit,     just as the are from his salary.
 A salaried employee who submits a personal claim - only National Insurance and health insurance contributions are deducted.
 Self-employed worker, a person who is not working or a student studying in an institution of higher education who submits a personal claim - National insurance and health insurance contributions are not deducted from the benefit.

Income tax

The National Insurance Institute deducts income tax from the benefit according to the Table of Tax Deductions from Wages (Daily Workers). A deduction or exemption is granted to those who are entitled under the income tax regulations.

Payments to provident funds and pension funds

A worker who is a member of a pension fund or provident fund or who is covered by managers insurance is required to pay for the period of time in which he served in reserve duty, and the employer of a salaried employee is required to pay his share as though the employee had not served in reserve duty and continued to work.

Differentials for a self-employed worker

A self-employed worker whose income, according to assessment, was higher than the income according to which he was paid the reserve service benefit, will be paid differentials along with linkage to the Consumer Price Index. If his income was lower than the income according to which he was paid the reserve service benefit, he will be required to repay the differentials along with linkage differentials. The reserve service differentials are calculated when the National Insurance differentials are calculated according to the assessment.