A self-employed person, as well as a person who does not work but has an income, must pay advance contribution payments by the 15th of each month. The rate of the monthly payments is determined according to an assessed income. Upon receipt of the assessment from the Income Tax Authority, the Institute calculates in advance the debit/creditbalance in insurance contributions.
In addition, the Institute recalculates the differences in benefits paid to the insured person for the same period of time (wage-replacing benefits such as maternity allowance and reserve service benefit).
Reduction and Enlargement of Advance Payments
If the sum of advance payments determined by the National Insurance Institute does not correspond to the actual income, the person should contact the local branch of the National Insurance Institute in which his insurance account is administered and present documents indicating his/her income.
The advanced payments can be adjusted once a year, based on income documents, as defined by National Insurance regulations.
A self-employed person can reduce or increase the sum of advance payments only if he/she submitted a request to do so before the end of the fiscal year. If the person was injured at work, the above request cannot be submitted after said work injury
It is recommended that a self-employed person who was not injured at work during the fiscal year, and is certain that his/her income will be greater than the basis on which the insurance contributions were paid, contact the National Insurance Institute and request to increase the advance payments: 52% of the insurance contributions paid as advance payments are recognized as an income tax deduction purposes for that fiscal year.