After the foundation of the company, customers often have many questions about the employment of the director in the company, the basis for his employment, the cost of contributions and other costs. The answers follow below in the text.
Employment in the company and insurance basis
The law on labour relations allows the director and owner of a limited liability company to employ himself in the company. This is also the rule for companies with one person that do not have subordinate relationships, which is a key element of the employment relationship. Therefore, the owner writes and signs an employment contract (on behalf of the employer and the employee), on this basis the salary, which must be above the minimum, is paid. The basis for insurance 001 (full employment) is registered through the form M1. In this case, contributions are calculated from the salary.
Management contract and insurance basis
The owner may be employed as a manager based on signing a civil contract, which the owner concludes with himself. In the contract, it is necessary to determine the reimbursement of expenses that the director has the right to receive (expenses for food and transport, daily allowances, etc.). In this case, the director does not receive the salary, which would be the basis for the calculation of the contributions, but the contributions are calculated based on a certain insurance basis (the lowest basis is the minimum pension basis). In this case, the form M1 specifies the basis for insurance 040 (owner of a private company).
Managers who are at the same time shareholders of the company and do not have regulated insurance on a different basis, pay contributions from the insurance basis, which is determined in accordance with the level of income in the previous year from the management. Basis for contributions vary:
- 2016: 70 % of the average salary,
- 2017: 75 % of the average salary,
- 2018: 80 % of the average salary,
- 2019: 85 % of the average salary,
- 2020: 90 % of the average salary.
The basis for contributions for the shareholder has an upper limit. From including the year 2014, the basis is 3.5 times the average salary (350% of the average salary).
|Type of contribution||The level of contribution for the insured person||The level of contribution for the employer|
|Pension and disability insurance||15,50 %||8,85 %|
|Medical insurance||6,36 %||6,56 %|
|Maternity / paternity leave||0,10 %||0,10 %|
|Employment||0,14 %||0,06 %|
|Injuries at work and occupational diseases||–||0,53 %|
|TOTAL||22,10 %||16,10 %|