Employment pension is part of statutory social security. The Central Pension Security Institution ETK and the Farmers’ Social Insurance Institution (Mela) oversee the adherence to the insurance obligation. If an employer or entrepreneur does not take out an employment pension within a set time limit, the insurance institution may propose that the State Treasury impose a penalty fee.
Why was I issued a penalty fee?
If you have neglected to take out the pension insurance specified in the Employees Pensions Act, the Self-employed Persons’ Pension Act, the Seafarers’ Pensions Act or the Farmers’ Pensions Act in the set time frame, the State Treasury shall impose a penalty fee at the request of the insurance institution.
- The insurance institution shall ask the State Treasury to impose a penalty fee after the insurance institution, ETK or Mela has made the decision to insure.
- The State Treasury will then send the employer or entrepreneur a consultation document.
- The State Treasury makes the decision on imposing the penalty fee.
- The insurance institution sends you an invoice concerning the penalty fee, after which you may pay the fee.
How is the penalty fee determined?
The penalty fee is calculated by multiplying the employment pension insurance contributions for the period of the neglect by the penalty fee determination percentage.
The determination percentage is
- at least 10 %
- at least 30 %, if ETK or Mela has made a mandatory insurance decision
- up to 100 %.