Regularisation of the annual contribution threshold – Example 2

Terms of the theoretical example

An employee working full-time (every month), with a monthly base wage of EUR 6,000.00, received a gratuity of EUR 45,000.00 in June and a second gratuity of EUR 20,000.00 in December.

When making the calculation in August (for the June reference period), the sum of the wage and the gratuity of EUR 51,000.00 (6,000.00 + 45,000.00) exceeds the monthly maximum contribution threshold, which is EUR 11,009.65 (five monthly minimum wages). Likewise, when making the calculation in February N+1 (for the December reference period), the sum of the wage and the gratuity EUR 26,000.00 (6,000.00 + 20,000.00) exceeds the monthly maximum contribution threshold, which is EUR 11,009.65 EUR (5 monthly minimum wages).

The monthly minimum wage is EUR 2,201.93.

Old procedure

The contribution calculations, for the June and December reference periods, are made in August or February N+1 on the contribution threshold. Thus, the contributions on the remaining EUR 54,980.70 (EUR 39,990.35 (June) and 14,999.35 (December)) are made in February N+2, up to the amount of the annual contribution threshold of EUR 132,115.80. Given that the annual base subject to contributions at that time is EUR 82,019.30, the regularised contribution base (threshold) may not exceed EUR 50,096.50.

 

Procedure

Contributions for the June reference period are calculated on the monthly contribution threshold. The difference of EUR 39,990.35 between the EUR 51,000.00 (wage + gratuity) and the monthly maximum contribution threshold (EUR 11,009.65) is regularised at the same time, up to the amount of the cumulative annual contribution threshold.

Given that the cumulative annual contribution base not subject to threshold (EUR 81,000.00 for the January to June period) is higher than the cumulative annual contribution threshold (EUR 66,057.90 for the January to June period), the annual contribution threshold is regularised on the EUR 66,057.90, thus resulting in a regularised contribution base of EUR 25,048.25. In this instance, the new Calculation file sent in August contains a 'threshold' section for the June reference period.

Given that the cumulative annual contribution base not subject to threshold exceeds the cumulative annual contribution threshold when calculating the June reference period, the regularisation of the contribution threshold is recalculated in the calculation for the July (EUR 30,057.90), August (EUR 35,067.55) and September (EUR 39,990.35) reference periods, until the cumulative annual contribution base not subject to threshold for the January to September reference period (EUR 99,000.00) falls below the cumulative annual contribution threshold for the same period (EUR 99,086.85). Thus, for July, August and September, the contributions will be calculated on the difference between the contribution base of the month in question and the contribution base of the preceding month. The new Calculation files sent in September, October and November for the aforementioned three reference periods contain a 'threshold' section, while the Calculation files for the October and November reference periods do not contain a 'threshold' section, given that the regularised contribution base (threshold) does not change relative to the respective month preceding them and the social security contributions for the types of coverage concerned are not therefore recalculated.

Contributions for the December reference period are calculated on the annual contribution threshold. The difference between the EUR 26,000.00 (wage + gratuity) and the monthly maximum contribution threshold (EUR 11,009.65) is regularised at the same time, up to the amount of the cumulative annual contribution threshold. The regularisation of the contribution assessment threshold, which is now EUR 50,096.50, is thus recalculated. On the EUR 137,000.00 representing the cumulative annual contribution base not subject to threshold (cumulative annual wage and gratuities), the contributions have ultimately been calculated up to an annual contribution assessment threshold of EUR 132,115.80.