SlideShare a Scribd company logo
1 of 17
Pamela Pace
Assistant Principal
Pensions | Benefits Department
Insurability…
 Part-timers
 Employed
 Self-employed –
Self/occupied
 Exemptions
 Employment abroad
 Early/Voluntary
Retirement Schemes
 Credits
Il-Bolla …
• The social security contribution has traditionally been referred to as 'bolla'
in Maltese.
• 'Bolla' refers to the 'stamp' that used to be manually affixed to a person's notebook
showing the number of contributions a person paid.
• A social security contribution is also referred to as SSC or NI, in day-to-day language
and in abbreviated terms.
• All persons who are over the age of sixteen (16) and who have not yet attained
retirement age of 65 years, and who are in insurable employment, are liable to pay
Social Security Contributions.
• Employees who are employed for less than eight (8) hours in any one calendar week
are not considered as being in insurable employment for Social Security
Contribution purposes and are exempted from paying an employed social security
contribution.
• Each year of gainful occupation will carry 52 or 53 social security contributions
(depending on the annual number of Mondays).
Type of Social Security Contributions:
Two types:
 Class I Social Security Contributions
 Class II Social Security Contributions
Class I Social Security Contributions
Social Security
Contributions
by individuals
who are
employed
persons are
called Class I
Contributions
and are paid by
direct
deductions
from the same
employees’
salary.
Rates for 2020
https://cfr.gov.mt/en/rates/Pages/SSC1/SSC1-2020.aspx
Class II Social Security Contributions
Self-Occupied Persons:
persons who earn income
from Trade, Business,
Profession, Vocation or
any other economic
activity that exceeds €910
per annum.
Self Employed Persons:
persons who receive
income from rents,
investments, capital gains
or any other income.
https://cfr.gov.mt/en/rates/Pages/SSC2/SSC2-2020.aspx
Rates for 2020
Overtime earnings have no effect on SSC Rate
The table shows
that the €300
earned in overtime
has been ignored.
Social Security
Contribution rate
due is calculated on
the Basic Weekly
Wage which
excludes
allowances,
bonuses, and/or
overtime earned in
a particular week.
Part-time Employees
Anyone who works less than 40 hours per week and who earns less than the National Minimum
(weekly) Wage (€179.33 weekly or €4.48), has the option to pay their share of social security
contributions on a pro-rata basis, 10% of their basic weekly wage as per Category B below.
When paying social security contributions by 10% pro-rata, these contributions are
different from the full contributions paid at the applicable full weekly rate and
eventually WILL NOT be considered as one contribution per week.
Social security contributions
are shown on the employee’s
contribution record.
• It’s divided into 3 main columns
• 1st column - the year when
contributions were made
• 2nd column – number of contributions
by
Class 1 – employees
Class 2 – self-employed / self-
occupied
Class 3 – voluntary – retrospective
• 3rd column – credits by class
Calculation of a Contribution Average
• The calculation of a
Contribution Average
is assessed on the
number of
contributions / credits
from age 18 up to the
date of retirement.
• To be eligible to a full
two thirds pension, the
contribution average
must be at least 50
Any contribution average from 15 to 49.99
will result in a decreased amount of Two-Third’s Pension (TTP) rate
Retrospective Payments
are currently employed or self-occupied.
are 59 years up to and including 65 years of age
decide to pay contributions up to a maximum of 5
years (260 contributions)
Contributions may only be paid for periods of
residence in Malta
Applicable rate due is the current Class 2 Social
Security Contribution Rate SA, which in 2020
stands at €30.77 per contribution.
If you are employed or self-occupied, you have the
option to pay Social Security Contributions (SSCs)
to fill any gaps in your contribution record which
will eventually improve your pension rate.
The scheme is applicable for those persons who:
Who is exempted from payment of
contribution
If their annual earnings exceed €910,
they are personally responsible to pay
a self-occupied contribution.
If their annual earnings do not exceed
€910 are exempted from payment of
contributions
Employees who carry out less than eight (8) hours of work in any
one calendar week are not considered as being in insurable
employment for Social Security Contribution purposes.
BUT
Employment abroad…
Maltese employed abroad in
a non EU country
an EU country
EU institutions
WHO
UN institutions
who maintain an ordinary residence
in Malta have the option to pay a
Class I contribution by virtue of Article
13 of the Social Security Act (Cap
318). Payment is carried out in the
same manner as that applicable to
self-employee/occupied persons on
the form below.
Early/Voluntary Retirement Scheme
Persons who retire from employment through an early/voluntary
retirement scheme have the option to continue paying a Class II
contribution as self-employed persons by virtue of Article 3.
They may:
 choose to pay social security contributions up to retirement age. A
copy of scheme would be required together with a request to pay
national insurance contributions. Request should include that
registering for employment with ETC will not take place;
 register for employment with JOBS+ BUT during the first six
months, a request should be sent to the Department of Social
Security whereby a bill for the payment of social security
contributions for the first six months is duly issued. After the lapse
of six months these contributors are eligible to unemployment
benefits (UB) and social security unemployment credits.
Credits
Credits are credited contributions that protect your social security contribution record
sheet. You get your contributions covered if:
 you stay at home to care for a child up to six years of age
 the medical board certified you as being incapable of performing full-time or part-
time employment due to health reasons.
 are a widow for period during which you do not remarry and provided your
deceased husband had paid 156 contributions prior to his death
 an ex-member of the Malta Police Force or of the Armed Forces of Malta who
retired from the service and did not resume employment.
 you are in receipt of sickness benefit
 you are self-occupied and in receipt of injury benefit
 you lost your job through redundancy and registering for work
 you have furthered your studies
 performance of volunteering work in Malta or abroad
 you are in receipt of carer’s pension
More than just pensions
 Unemployment
 Benefit/Special Unemployment Benefit
 Injury on Duty Benefit
 Marriage Grant
 Maternity Benefit
 Maternity Leave Benefit
 Contributory Retirement Pension
 Widow’s Pension
 Invalidity Pension
 Grant paid to persons who do not qualify
for a pension due to a low contribution
average
 Non Contributory Benefits - Age Pension
 SocialAssistance/Unemployment Assistance
 Subsidiary Unemployment Assistance
 Payment to Residents of a Therapeutic Community
 Tapering of Benefits
 Sickness Assistance
 Milk Grant
 Free Medical Aid (Pink Form)
 Schedule 5 (Yellow Card)
 Assistances for a Disability
 Assistance for the Visually Impaired
 Disability Assistance
 Carers Benefits
 Children Allowance
 Supplementary Allowance
 Energy Benefit
 In Work Benefit
 Senior Citizen Grant
Pamela Pace
Assistant Principal
Pensions | Benefits Department
Thank you…
For more information about
Social Security Contributions
visit
www.gemma.gov
socialsecurity.gov.mt
irdpubserv.gov.mt/services/ssccalculator.aspx
To address specific individual queries
Call 153
or email to
gemma@gov.mt
social.security@gov.mt

More Related Content

What's hot

Pension and ESIC presentation
Pension and ESIC presentationPension and ESIC presentation
Pension and ESIC presentationKartik Nerurkar
 
Standard life presentation 2015
Standard life presentation 2015Standard life presentation 2015
Standard life presentation 2015alzscot
 
Irh 833 retirement and pension administration
Irh 833  retirement and pension administration Irh 833  retirement and pension administration
Irh 833 retirement and pension administration Anya Josephine
 
Pension schemes of epfo
Pension schemes of epfoPension schemes of epfo
Pension schemes of epfoSuresh Murugan
 
How to save Income tax for FY 2017-18?
How to save Income tax for FY 2017-18?How to save Income tax for FY 2017-18?
How to save Income tax for FY 2017-18?Amit Kumar
 
7 retirement & pension by ch.ghulam hasan shakir
7 retirement & pension by ch.ghulam hasan shakir7 retirement & pension by ch.ghulam hasan shakir
7 retirement & pension by ch.ghulam hasan shakirAfzaalFirdousi
 
How to save Income tax for FY 2018-19 for Salaried?
How to save Income tax for FY 2018-19 for Salaried?How to save Income tax for FY 2018-19 for Salaried?
How to save Income tax for FY 2018-19 for Salaried?Amit Kumar
 
Corporate social responsibility ppt
Corporate social responsibility pptCorporate social responsibility ppt
Corporate social responsibility pptGanesh Turerao
 
Wages and salary meaning and its content & Social security, security In India...
Wages and salary meaning and its content & Social security, security In India...Wages and salary meaning and its content & Social security, security In India...
Wages and salary meaning and its content & Social security, security In India...Gordon R Pathaw
 
Guide to loss of income and disability insurance in switzerland
Guide to loss of income and disability insurance in switzerlandGuide to loss of income and disability insurance in switzerland
Guide to loss of income and disability insurance in switzerlandExpat Experts
 
Tax saving Guide U/s 80/C 2015-16
Tax saving Guide U/s  80/C  2015-16Tax saving Guide U/s  80/C  2015-16
Tax saving Guide U/s 80/C 2015-16mebheda
 
Tax Treatment on Offshore Pension Contribution for Expatriate Paid by Indo Co
Tax Treatment on Offshore Pension Contribution for Expatriate Paid by Indo CoTax Treatment on Offshore Pension Contribution for Expatriate Paid by Indo Co
Tax Treatment on Offshore Pension Contribution for Expatriate Paid by Indo CoAndhika Nugroho
 
Social security
 Social security Social security
Social securityVishnu Das
 

What's hot (20)

PF AND ESIC
PF AND ESICPF AND ESIC
PF AND ESIC
 
Pension and ESIC presentation
Pension and ESIC presentationPension and ESIC presentation
Pension and ESIC presentation
 
Standard life presentation 2015
Standard life presentation 2015Standard life presentation 2015
Standard life presentation 2015
 
Irh 833 retirement and pension administration
Irh 833  retirement and pension administration Irh 833  retirement and pension administration
Irh 833 retirement and pension administration
 
Pension schemes of epfo
Pension schemes of epfoPension schemes of epfo
Pension schemes of epfo
 
How to save Income tax for FY 2017-18?
How to save Income tax for FY 2017-18?How to save Income tax for FY 2017-18?
How to save Income tax for FY 2017-18?
 
7 retirement & pension by ch.ghulam hasan shakir
7 retirement & pension by ch.ghulam hasan shakir7 retirement & pension by ch.ghulam hasan shakir
7 retirement & pension by ch.ghulam hasan shakir
 
MALDIVES PENSION ADMINISTRATION OFFICE
MALDIVES PENSION ADMINISTRATION OFFICEMALDIVES PENSION ADMINISTRATION OFFICE
MALDIVES PENSION ADMINISTRATION OFFICE
 
How to save Income tax for FY 2018-19 for Salaried?
How to save Income tax for FY 2018-19 for Salaried?How to save Income tax for FY 2018-19 for Salaried?
How to save Income tax for FY 2018-19 for Salaried?
 
Corporate social responsibility ppt
Corporate social responsibility pptCorporate social responsibility ppt
Corporate social responsibility ppt
 
Wages and salary meaning and its content & Social security, security In India...
Wages and salary meaning and its content & Social security, security In India...Wages and salary meaning and its content & Social security, security In India...
Wages and salary meaning and its content & Social security, security In India...
 
ESI
ESIESI
ESI
 
Guide to loss of income and disability insurance in switzerland
Guide to loss of income and disability insurance in switzerlandGuide to loss of income and disability insurance in switzerland
Guide to loss of income and disability insurance in switzerland
 
Complete ctp unit 1
Complete ctp unit 1Complete ctp unit 1
Complete ctp unit 1
 
Pension rules
Pension rulesPension rules
Pension rules
 
Social Security Power Point
Social Security Power PointSocial Security Power Point
Social Security Power Point
 
Employee provident fund
Employee provident fundEmployee provident fund
Employee provident fund
 
Tax saving Guide U/s 80/C 2015-16
Tax saving Guide U/s  80/C  2015-16Tax saving Guide U/s  80/C  2015-16
Tax saving Guide U/s 80/C 2015-16
 
Tax Treatment on Offshore Pension Contribution for Expatriate Paid by Indo Co
Tax Treatment on Offshore Pension Contribution for Expatriate Paid by Indo CoTax Treatment on Offshore Pension Contribution for Expatriate Paid by Indo Co
Tax Treatment on Offshore Pension Contribution for Expatriate Paid by Indo Co
 
Social security
 Social security Social security
Social security
 

Similar to Gemma webinar social security contributions what is important to know

UK SIPPs - May 2010
UK SIPPs - May 2010UK SIPPs - May 2010
UK SIPPs - May 2010Farringdon
 
Worldwide benefits-Social Security: Planning Your Retirement
Worldwide benefits-Social Security: Planning Your RetirementWorldwide benefits-Social Security: Planning Your Retirement
Worldwide benefits-Social Security: Planning Your RetirementCarol Buckmann
 
Social Security presentation 2014
Social Security presentation 2014Social Security presentation 2014
Social Security presentation 2014Sean McCann
 
PPT on "Employee's State Insurance Act 1948" of India.
PPT on "Employee's State Insurance Act 1948" of India.PPT on "Employee's State Insurance Act 1948" of India.
PPT on "Employee's State Insurance Act 1948" of India.Anshu Shekhar Singh
 
The employee provident Act 1952
The employee provident Act 1952The employee provident Act 1952
The employee provident Act 1952ARUNAYESUDAS
 
Social security schemes
Social security schemesSocial security schemes
Social security schemesMitasha Singh
 
The employees state insurance act,1948
The employees state insurance act,1948The employees state insurance act,1948
The employees state insurance act,1948Samar Singh
 
Emerging Issues of Employee Provident Fund
Emerging Issues of Employee Provident FundEmerging Issues of Employee Provident Fund
Emerging Issues of Employee Provident FundGreytip Software
 
5. EMPLOYEE’S STATE INSURANCE ACT 1948 NEW PRSENTATION.pptx
5. EMPLOYEE’S STATE INSURANCE ACT 1948 NEW PRSENTATION.pptx5. EMPLOYEE’S STATE INSURANCE ACT 1948 NEW PRSENTATION.pptx
5. EMPLOYEE’S STATE INSURANCE ACT 1948 NEW PRSENTATION.pptxchiragcdbc92
 
Report civil service policies
Report civil service policiesReport civil service policies
Report civil service policiesLouie Medinaceli
 
The earnings-related pension a part of social insurance
The earnings-related pension a part of social insuranceThe earnings-related pension a part of social insurance
The earnings-related pension a part of social insuranceEläketurvakeskus
 
Social security schemes
Social security schemesSocial security schemes
Social security schemesMitasha Singh
 
Social Security 101
Social Security 101Social Security 101
Social Security 101dhagenmaier
 

Similar to Gemma webinar social security contributions what is important to know (20)

UK SIPPs - May 2010
UK SIPPs - May 2010UK SIPPs - May 2010
UK SIPPs - May 2010
 
Worldwide benefits-Social Security: Planning Your Retirement
Worldwide benefits-Social Security: Planning Your RetirementWorldwide benefits-Social Security: Planning Your Retirement
Worldwide benefits-Social Security: Planning Your Retirement
 
Social Security presentation 2014
Social Security presentation 2014Social Security presentation 2014
Social Security presentation 2014
 
Canada Pension Plan and Old Age Security Overview
Canada Pension Plan and Old Age Security OverviewCanada Pension Plan and Old Age Security Overview
Canada Pension Plan and Old Age Security Overview
 
social security.pptx
social security.pptxsocial security.pptx
social security.pptx
 
Pension Plans - Jamaica
Pension Plans - JamaicaPension Plans - Jamaica
Pension Plans - Jamaica
 
PPT on "Employee's State Insurance Act 1948" of India.
PPT on "Employee's State Insurance Act 1948" of India.PPT on "Employee's State Insurance Act 1948" of India.
PPT on "Employee's State Insurance Act 1948" of India.
 
The employee provident Act 1952
The employee provident Act 1952The employee provident Act 1952
The employee provident Act 1952
 
Social security schemes
Social security schemesSocial security schemes
Social security schemes
 
The employees state insurance act,1948
The employees state insurance act,1948The employees state insurance act,1948
The employees state insurance act,1948
 
Planning for your Retirement
Planning for your RetirementPlanning for your Retirement
Planning for your Retirement
 
LL4.pptx
LL4.pptxLL4.pptx
LL4.pptx
 
LL4.pptx
LL4.pptxLL4.pptx
LL4.pptx
 
Emerging Issues of Employee Provident Fund
Emerging Issues of Employee Provident FundEmerging Issues of Employee Provident Fund
Emerging Issues of Employee Provident Fund
 
5. EMPLOYEE’S STATE INSURANCE ACT 1948 NEW PRSENTATION.pptx
5. EMPLOYEE’S STATE INSURANCE ACT 1948 NEW PRSENTATION.pptx5. EMPLOYEE’S STATE INSURANCE ACT 1948 NEW PRSENTATION.pptx
5. EMPLOYEE’S STATE INSURANCE ACT 1948 NEW PRSENTATION.pptx
 
Report civil service policies
Report civil service policiesReport civil service policies
Report civil service policies
 
The earnings-related pension a part of social insurance
The earnings-related pension a part of social insuranceThe earnings-related pension a part of social insurance
The earnings-related pension a part of social insurance
 
Social security schemes
Social security schemesSocial security schemes
Social security schemes
 
Socialsecurityschemes in india
Socialsecurityschemes in indiaSocialsecurityschemes in india
Socialsecurityschemes in india
 
Social Security 101
Social Security 101Social Security 101
Social Security 101
 

More from mfcsmalta

Scams and fraud presentation webinar - jul2021
Scams and fraud presentation   webinar - jul2021Scams and fraud presentation   webinar - jul2021
Scams and fraud presentation webinar - jul2021mfcsmalta
 
Final gemma personal financial capability survey 2 for presentation
Final gemma personal financial capability survey 2 for presentationFinal gemma personal financial capability survey 2 for presentation
Final gemma personal financial capability survey 2 for presentationmfcsmalta
 
ĠEMMA - studying - abroad
ĠEMMA - studying - abroadĠEMMA - studying - abroad
ĠEMMA - studying - abroadmfcsmalta
 
Vorps - ppt - GEMMA
Vorps - ppt - GEMMAVorps - ppt - GEMMA
Vorps - ppt - GEMMAmfcsmalta
 
Private Personal Pensions - ĠEMMA
Private Personal Pensions - ĠEMMAPrivate Personal Pensions - ĠEMMA
Private Personal Pensions - ĠEMMAmfcsmalta
 
Gemma vorps powerpoint
Gemma vorps powerpointGemma vorps powerpoint
Gemma vorps powerpointmfcsmalta
 
Two years on - www.gemma.gov.mt
Two years on - www.gemma.gov.mtTwo years on - www.gemma.gov.mt
Two years on - www.gemma.gov.mtmfcsmalta
 
The NatWest budget game guidebook
The NatWest budget game guidebookThe NatWest budget game guidebook
The NatWest budget game guidebookmfcsmalta
 
Gemma bonuses guidebook
Gemma bonuses guidebookGemma bonuses guidebook
Gemma bonuses guidebookmfcsmalta
 
Calendar 2019
Calendar 2019Calendar 2019
Calendar 2019mfcsmalta
 
Our travel calculator guidebook
Our travel calculator guidebookOur travel calculator guidebook
Our travel calculator guidebookmfcsmalta
 
Tax calculations 2018 and 2019 employees and working non working pensioner...
Tax calculations 2018 and 2019    employees and working non working pensioner...Tax calculations 2018 and 2019    employees and working non working pensioner...
Tax calculations 2018 and 2019 employees and working non working pensioner...mfcsmalta
 
Wedding planner guidebook
Wedding planner guidebookWedding planner guidebook
Wedding planner guidebookmfcsmalta
 
Having a baby planner
Having a baby plannerHaving a baby planner
Having a baby plannermfcsmalta
 
Having a baby planner
Having a baby plannerHaving a baby planner
Having a baby plannermfcsmalta
 
Financial Literacy L3 Programme - MCAST
Financial Literacy L3 Programme - MCASTFinancial Literacy L3 Programme - MCAST
Financial Literacy L3 Programme - MCASTmfcsmalta
 
OECD Research Findings - Presentation
OECD Research Findings - PresentationOECD Research Findings - Presentation
OECD Research Findings - Presentationmfcsmalta
 
Gemma - mApps Presentation
Gemma - mApps PresentationGemma - mApps Presentation
Gemma - mApps Presentationmfcsmalta
 
Financial Literacy - Campaign Presentation
Financial Literacy - Campaign PresentationFinancial Literacy - Campaign Presentation
Financial Literacy - Campaign Presentationmfcsmalta
 
Festive Season Calculator presentation
Festive Season Calculator presentationFestive Season Calculator presentation
Festive Season Calculator presentationmfcsmalta
 

More from mfcsmalta (20)

Scams and fraud presentation webinar - jul2021
Scams and fraud presentation   webinar - jul2021Scams and fraud presentation   webinar - jul2021
Scams and fraud presentation webinar - jul2021
 
Final gemma personal financial capability survey 2 for presentation
Final gemma personal financial capability survey 2 for presentationFinal gemma personal financial capability survey 2 for presentation
Final gemma personal financial capability survey 2 for presentation
 
ĠEMMA - studying - abroad
ĠEMMA - studying - abroadĠEMMA - studying - abroad
ĠEMMA - studying - abroad
 
Vorps - ppt - GEMMA
Vorps - ppt - GEMMAVorps - ppt - GEMMA
Vorps - ppt - GEMMA
 
Private Personal Pensions - ĠEMMA
Private Personal Pensions - ĠEMMAPrivate Personal Pensions - ĠEMMA
Private Personal Pensions - ĠEMMA
 
Gemma vorps powerpoint
Gemma vorps powerpointGemma vorps powerpoint
Gemma vorps powerpoint
 
Two years on - www.gemma.gov.mt
Two years on - www.gemma.gov.mtTwo years on - www.gemma.gov.mt
Two years on - www.gemma.gov.mt
 
The NatWest budget game guidebook
The NatWest budget game guidebookThe NatWest budget game guidebook
The NatWest budget game guidebook
 
Gemma bonuses guidebook
Gemma bonuses guidebookGemma bonuses guidebook
Gemma bonuses guidebook
 
Calendar 2019
Calendar 2019Calendar 2019
Calendar 2019
 
Our travel calculator guidebook
Our travel calculator guidebookOur travel calculator guidebook
Our travel calculator guidebook
 
Tax calculations 2018 and 2019 employees and working non working pensioner...
Tax calculations 2018 and 2019    employees and working non working pensioner...Tax calculations 2018 and 2019    employees and working non working pensioner...
Tax calculations 2018 and 2019 employees and working non working pensioner...
 
Wedding planner guidebook
Wedding planner guidebookWedding planner guidebook
Wedding planner guidebook
 
Having a baby planner
Having a baby plannerHaving a baby planner
Having a baby planner
 
Having a baby planner
Having a baby plannerHaving a baby planner
Having a baby planner
 
Financial Literacy L3 Programme - MCAST
Financial Literacy L3 Programme - MCASTFinancial Literacy L3 Programme - MCAST
Financial Literacy L3 Programme - MCAST
 
OECD Research Findings - Presentation
OECD Research Findings - PresentationOECD Research Findings - Presentation
OECD Research Findings - Presentation
 
Gemma - mApps Presentation
Gemma - mApps PresentationGemma - mApps Presentation
Gemma - mApps Presentation
 
Financial Literacy - Campaign Presentation
Financial Literacy - Campaign PresentationFinancial Literacy - Campaign Presentation
Financial Literacy - Campaign Presentation
 
Festive Season Calculator presentation
Festive Season Calculator presentationFestive Season Calculator presentation
Festive Season Calculator presentation
 

Recently uploaded

Cryptocurrency Security Reinvented: The Leadership of Verified Binance Accounts
Cryptocurrency Security Reinvented: The Leadership of Verified Binance AccountsCryptocurrency Security Reinvented: The Leadership of Verified Binance Accounts
Cryptocurrency Security Reinvented: The Leadership of Verified Binance AccountsAny kyc Account
 
Liquidity Decisions in Financial management
Liquidity Decisions in Financial managementLiquidity Decisions in Financial management
Liquidity Decisions in Financial managementshrutisingh143670
 
2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGeckoCoinGecko
 
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdfmagnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdfHenry Tapper
 
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...Amil baba
 
NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...
NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...
NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...Amil baba
 
Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Commonwealth
 
Bladex 1Q24 Earning Results Presentation
Bladex 1Q24 Earning Results PresentationBladex 1Q24 Earning Results Presentation
Bladex 1Q24 Earning Results PresentationBladex
 
INTERNATIONAL TRADE INSTITUTIONS[6].pptx
INTERNATIONAL TRADE INSTITUTIONS[6].pptxINTERNATIONAL TRADE INSTITUTIONS[6].pptx
INTERNATIONAL TRADE INSTITUTIONS[6].pptxaymenkhalfallah23
 
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书rnrncn29
 
Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713Sonam Pathan
 
Role of Information and technology in banking and finance .pptx
Role of Information and technology in banking and finance .pptxRole of Information and technology in banking and finance .pptx
Role of Information and technology in banking and finance .pptxNarayaniTripathi2
 
Guard Your Investments- Corporate Defaults Alarm.pdf
Guard Your Investments- Corporate Defaults Alarm.pdfGuard Your Investments- Corporate Defaults Alarm.pdf
Guard Your Investments- Corporate Defaults Alarm.pdfJasper Colin
 
Chancla Coin Charm- How Slipper Became Crypto Fun's Symbol!.pdf
Chancla Coin Charm- How Slipper Became Crypto Fun's Symbol!.pdfChancla Coin Charm- How Slipper Became Crypto Fun's Symbol!.pdf
Chancla Coin Charm- How Slipper Became Crypto Fun's Symbol!.pdfcoingabbar
 
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...Amil baba
 
Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...
Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...
Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...amilabibi1
 
Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Devarsh Vakil
 
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.pptAnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.pptPriyankaSharma89719
 
Financial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.pptFinancial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.ppttadegebreyesus
 

Recently uploaded (20)

Cryptocurrency Security Reinvented: The Leadership of Verified Binance Accounts
Cryptocurrency Security Reinvented: The Leadership of Verified Binance AccountsCryptocurrency Security Reinvented: The Leadership of Verified Binance Accounts
Cryptocurrency Security Reinvented: The Leadership of Verified Binance Accounts
 
Liquidity Decisions in Financial management
Liquidity Decisions in Financial managementLiquidity Decisions in Financial management
Liquidity Decisions in Financial management
 
2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko
 
Q1 2024 Newsletter | Financial Synergies Wealth Advisors
Q1 2024 Newsletter | Financial Synergies Wealth AdvisorsQ1 2024 Newsletter | Financial Synergies Wealth Advisors
Q1 2024 Newsletter | Financial Synergies Wealth Advisors
 
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdfmagnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
 
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
 
NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...
NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...
NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...
 
Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]
 
Bladex 1Q24 Earning Results Presentation
Bladex 1Q24 Earning Results PresentationBladex 1Q24 Earning Results Presentation
Bladex 1Q24 Earning Results Presentation
 
INTERNATIONAL TRADE INSTITUTIONS[6].pptx
INTERNATIONAL TRADE INSTITUTIONS[6].pptxINTERNATIONAL TRADE INSTITUTIONS[6].pptx
INTERNATIONAL TRADE INSTITUTIONS[6].pptx
 
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
 
Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713
 
Role of Information and technology in banking and finance .pptx
Role of Information and technology in banking and finance .pptxRole of Information and technology in banking and finance .pptx
Role of Information and technology in banking and finance .pptx
 
Guard Your Investments- Corporate Defaults Alarm.pdf
Guard Your Investments- Corporate Defaults Alarm.pdfGuard Your Investments- Corporate Defaults Alarm.pdf
Guard Your Investments- Corporate Defaults Alarm.pdf
 
Chancla Coin Charm- How Slipper Became Crypto Fun's Symbol!.pdf
Chancla Coin Charm- How Slipper Became Crypto Fun's Symbol!.pdfChancla Coin Charm- How Slipper Became Crypto Fun's Symbol!.pdf
Chancla Coin Charm- How Slipper Became Crypto Fun's Symbol!.pdf
 
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
 
Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...
Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...
Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...
 
Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024
 
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.pptAnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
 
Financial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.pptFinancial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.ppt
 

Gemma webinar social security contributions what is important to know

  • 2. Insurability…  Part-timers  Employed  Self-employed – Self/occupied  Exemptions  Employment abroad  Early/Voluntary Retirement Schemes  Credits
  • 3. Il-Bolla … • The social security contribution has traditionally been referred to as 'bolla' in Maltese. • 'Bolla' refers to the 'stamp' that used to be manually affixed to a person's notebook showing the number of contributions a person paid. • A social security contribution is also referred to as SSC or NI, in day-to-day language and in abbreviated terms. • All persons who are over the age of sixteen (16) and who have not yet attained retirement age of 65 years, and who are in insurable employment, are liable to pay Social Security Contributions. • Employees who are employed for less than eight (8) hours in any one calendar week are not considered as being in insurable employment for Social Security Contribution purposes and are exempted from paying an employed social security contribution. • Each year of gainful occupation will carry 52 or 53 social security contributions (depending on the annual number of Mondays).
  • 4. Type of Social Security Contributions: Two types:  Class I Social Security Contributions  Class II Social Security Contributions
  • 5. Class I Social Security Contributions Social Security Contributions by individuals who are employed persons are called Class I Contributions and are paid by direct deductions from the same employees’ salary. Rates for 2020 https://cfr.gov.mt/en/rates/Pages/SSC1/SSC1-2020.aspx
  • 6. Class II Social Security Contributions Self-Occupied Persons: persons who earn income from Trade, Business, Profession, Vocation or any other economic activity that exceeds €910 per annum. Self Employed Persons: persons who receive income from rents, investments, capital gains or any other income. https://cfr.gov.mt/en/rates/Pages/SSC2/SSC2-2020.aspx Rates for 2020
  • 7. Overtime earnings have no effect on SSC Rate The table shows that the €300 earned in overtime has been ignored. Social Security Contribution rate due is calculated on the Basic Weekly Wage which excludes allowances, bonuses, and/or overtime earned in a particular week.
  • 8. Part-time Employees Anyone who works less than 40 hours per week and who earns less than the National Minimum (weekly) Wage (€179.33 weekly or €4.48), has the option to pay their share of social security contributions on a pro-rata basis, 10% of their basic weekly wage as per Category B below. When paying social security contributions by 10% pro-rata, these contributions are different from the full contributions paid at the applicable full weekly rate and eventually WILL NOT be considered as one contribution per week.
  • 9. Social security contributions are shown on the employee’s contribution record. • It’s divided into 3 main columns • 1st column - the year when contributions were made • 2nd column – number of contributions by Class 1 – employees Class 2 – self-employed / self- occupied Class 3 – voluntary – retrospective • 3rd column – credits by class
  • 10. Calculation of a Contribution Average • The calculation of a Contribution Average is assessed on the number of contributions / credits from age 18 up to the date of retirement. • To be eligible to a full two thirds pension, the contribution average must be at least 50 Any contribution average from 15 to 49.99 will result in a decreased amount of Two-Third’s Pension (TTP) rate
  • 11. Retrospective Payments are currently employed or self-occupied. are 59 years up to and including 65 years of age decide to pay contributions up to a maximum of 5 years (260 contributions) Contributions may only be paid for periods of residence in Malta Applicable rate due is the current Class 2 Social Security Contribution Rate SA, which in 2020 stands at €30.77 per contribution. If you are employed or self-occupied, you have the option to pay Social Security Contributions (SSCs) to fill any gaps in your contribution record which will eventually improve your pension rate. The scheme is applicable for those persons who:
  • 12. Who is exempted from payment of contribution If their annual earnings exceed €910, they are personally responsible to pay a self-occupied contribution. If their annual earnings do not exceed €910 are exempted from payment of contributions Employees who carry out less than eight (8) hours of work in any one calendar week are not considered as being in insurable employment for Social Security Contribution purposes. BUT
  • 13. Employment abroad… Maltese employed abroad in a non EU country an EU country EU institutions WHO UN institutions who maintain an ordinary residence in Malta have the option to pay a Class I contribution by virtue of Article 13 of the Social Security Act (Cap 318). Payment is carried out in the same manner as that applicable to self-employee/occupied persons on the form below.
  • 14. Early/Voluntary Retirement Scheme Persons who retire from employment through an early/voluntary retirement scheme have the option to continue paying a Class II contribution as self-employed persons by virtue of Article 3. They may:  choose to pay social security contributions up to retirement age. A copy of scheme would be required together with a request to pay national insurance contributions. Request should include that registering for employment with ETC will not take place;  register for employment with JOBS+ BUT during the first six months, a request should be sent to the Department of Social Security whereby a bill for the payment of social security contributions for the first six months is duly issued. After the lapse of six months these contributors are eligible to unemployment benefits (UB) and social security unemployment credits.
  • 15. Credits Credits are credited contributions that protect your social security contribution record sheet. You get your contributions covered if:  you stay at home to care for a child up to six years of age  the medical board certified you as being incapable of performing full-time or part- time employment due to health reasons.  are a widow for period during which you do not remarry and provided your deceased husband had paid 156 contributions prior to his death  an ex-member of the Malta Police Force or of the Armed Forces of Malta who retired from the service and did not resume employment.  you are in receipt of sickness benefit  you are self-occupied and in receipt of injury benefit  you lost your job through redundancy and registering for work  you have furthered your studies  performance of volunteering work in Malta or abroad  you are in receipt of carer’s pension
  • 16. More than just pensions  Unemployment  Benefit/Special Unemployment Benefit  Injury on Duty Benefit  Marriage Grant  Maternity Benefit  Maternity Leave Benefit  Contributory Retirement Pension  Widow’s Pension  Invalidity Pension  Grant paid to persons who do not qualify for a pension due to a low contribution average  Non Contributory Benefits - Age Pension  SocialAssistance/Unemployment Assistance  Subsidiary Unemployment Assistance  Payment to Residents of a Therapeutic Community  Tapering of Benefits  Sickness Assistance  Milk Grant  Free Medical Aid (Pink Form)  Schedule 5 (Yellow Card)  Assistances for a Disability  Assistance for the Visually Impaired  Disability Assistance  Carers Benefits  Children Allowance  Supplementary Allowance  Energy Benefit  In Work Benefit  Senior Citizen Grant
  • 17. Pamela Pace Assistant Principal Pensions | Benefits Department Thank you… For more information about Social Security Contributions visit www.gemma.gov socialsecurity.gov.mt irdpubserv.gov.mt/services/ssccalculator.aspx To address specific individual queries Call 153 or email to gemma@gov.mt social.security@gov.mt

Editor's Notes

  1. What happens when someone would not have paid SSC because they were studying abroad for say a year?
  2. How do they go about paying for their self-occupied contribution?
  3. How do they go about paying for their self-occupied contribution?
  4. What happens if they do not pay SSC? If they pay SSC in Malta, does it mean that they don’t pay in the country they are working in?
  5. What does one need to do to be eligible for credits?