An insured person who has reached retirement age and does not yet receive an old-age pension will have national insurance and health insurance contributions deducted from his income from work.

A retired man who has not reached retirement age, and a retired unmarried woman who has not yet reached retirement age who receive pensions, must pay insurance contributions on half of the income from the pension.

The pension payer must deduct the insurance contributions at source from the pension and transfer the payments to the National Insurance Institute. “Pension” for the purposes of insurance contributions payment is a benefit paid by force of a law or a labor agreement to an employee, or to a person who was an employee, after that person has partially or completely retired from work.

A pension paid to the retiree's survivors is exempt from payment of insurance contributions.

A person on early retirement who is an employee or self-employed person, or both, must pay insurance contributions from each of his/her sources of income, up to the maximum income liable for the payment of insurance contributions. The aforementioned retiree whose liable income from all sources is above the maximum income liable for payment of insurance contributions is entitled to a refund of the insurance contributions paid above the maximum sum.

The maximum income on which contributions are paid. No payments are made on income above this amount. The amount is five times the average wage, as published in December 2005, and updated each January by the change in the consumer priceindex.

A married woman who does not work outside her household and whose husband is covered by old-age and survivors’ insurance shall submit a declaration to the pension payer, and based on this declaration, insurance contributions shall not be deducted from the pension paid her.