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The San Marino social security system provides for the payment of the pension and national insurance contributions by employees and self-employed workers. The general criteria for the calculation of the social security contributions are illustrated in the following paragraphs. The relevant Laws are: Law no. 158 dated 05/10/11 (reform of the pension system) and Law no. 191 dated 06/12/11 (establishing of a Supplementary Pension Fund called Fondiss – Complementary Pension Fund of the Social Insurance Institute).
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Payment of the social security contributions is made both by the employer and the employee and it is considerably reduced where the incentives in support of jobs, as in Law 71/2014, find application.
Allocation of the employees’ social security contributions
| Pension fund | Employee’s social contributions | Employer’s social contributions |
|---|---|---|
| Total | 8,3% | 27,4% |
| Social Services Fund Contribution | – | 1% |
| Fondiss Contribution | 2% | 2% |
| Pension Fund Contribution | 5,4% | 16,1% |
| Social Security | – | 4% |
| Family benefits | – | 2,4% |
| Layoff | 0,5% | 1,9% |
| Trade unions | 0,4% | – |
For example, an employer earning a monthly gross salary of € 1,700, € 141.1 will be deducted and € 465.8 will be the contributions paid by the employer.
Contributions for the Separate Management of the National Security Institute
The contribution to be paid to the Separate Management of the National Security Institute is applied to the reported taxable income, taking into account the basic income where the reported taxable income is lower. Contributions for the Separate Management of the National Security Institute must be paid by all the Directors and Chairmen of the Board.
At the moment of their retirement, the amount paid by each Director or Chairman as a contribution to the Separate Management of the National Security Institute will be provided to them plus the return on the accumulated contributions.
The rates to be paid to the Separate Management of the National Security Institute are calculated as follows:
| Pension Fund | Basic income | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|---|
| Separate Management of the National Security Institute | 24.876,94 € | 14% | 14,5% | 15% | 15% | 15% | 15% |
Fondiss Contribution (Complementary Pension Fund)
Fondiss is a complementary pension fund, established in 2011 by the Law N.191/2011 ensuring the settlement of an additional pension once the pensionable age is reached (this is why it is complementary to the Separate Management of the National Security Instituite). Even if it concerns about a complementary social security, being supplementary, we consider it to be mandatory for those who did not achieve the age of 50 years old at the moment the law entered into force (22/12/2011).
Fondiss rates are calculated as follows:
| Pension Fund | Basic income | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|---|
| Fondiss | 24.876,94 € | 2% | 2% | 3% | 3% | 4% | 4% |