Coronavirus: New Covid-19 measures for social security contributions aimed at employers and the self-employed

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Date:
04 Feb 2021

Newsflash

By:
Dorothée David

According to a press release published on 4 February 2021 by the Ministry for Social Security, the Joint Social Security Centre (Centre Commun de la Sécurité Sociale or CCSS) and the Mutualité des employeurs, the following new measures have been introduced to reduce the financial burden on employers and the self-employed when it comes to social security contributions:

  • Suspension of the calculation of interest for social security contributions not paid when due, for the period between 1 January 2021 and 30 June 2021.

According to the Law of 29 January 2021[1], social security contributions not paid when due will not incur interest for the period between 1 January 2021 and 30 June 2021. 

It should however be remembered that social security contributions are still due and are billed monthly. After 30 June 2021, the interest rate is reduced to 0% if the payment deadlines enjoyed by certain employers and self-employed workers are met, in other words if current contributions and the monthly payment on account for the debt are paid when due. 

  • Enforced recovery of social security contributions suspended for the Horeca sector until the end of March 2021 

The enforced recovery of social security contributions for employers in the Horeca sector is suspended until the end of March 2021. Self-employed workers in this sector can ask for enforced recovery to be suspended. 

After this date if the sector reopens, new proposals for the settlement of contribution arrears will be sent to these employers, who will be able to benefit from an automatic repayment extension of up to 24 months. The self-employed workers affected can have their contribution base adjusted to reduce the social security contributions. Employers and self-employed workers whose financial situation is particularly difficult will be able to contact the CCSS to arrange a personalised repayment plan with supporting documents. 

  • Up to 100% reimbursed by the Mutualité des Employeurs for quarantine or self-isolation 

Employers and self-employed workers will be entitled to a reimbursement of up to 100% instead of 80% for individuals who have had to quarantine or self-isolate (see our Newsflash of 22 January 2021).

This measure, applied retroactively as of 1 July 2020, does not affect financial absenteeism in relation to the category assigned by the Mutualité des employeurs. The refund will be shown as a credit on the CCSS bill received in the middle of March 2021.

 


[1] Law of 29 January 2021 modifying 1° the modified law of 17 July 2020 on the measures to combat the Covid-19 pandemic; 2° the modified law of 19 December 2020 introducing a temporary contribution by the government to costs not covered by certain businesses, published in Mémorial A no. 83 of 31 January 2021, which came into force on 1 February 2021.