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 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/shr served reserve duty, while the employer of a salaried employee is required to pay his/her share as if the employee did  not reserve duty and continued to work.

Differentials for the self-employed

The self-employed whose income, according to taxation assessment, was higher than the income of reference for the payment of their reserve service benefit, will be paid differentials along with linkage to the Consumer Price Index. If their income was lower than the income according to which reserve service benefit was paid, they 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.