The Lowest Contributions Are Paid by Priests and Family Farms, the Highest by Craftsmen and Athletes

The Ministry of Finance recently announced an increase in the base on which members and presidents of management boards must calculate pension and health contributions from 0.65 to 1.1 average gross salaries.

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Večernji reports that the minimum wage for workers this year is 3439.80 kuna, while for management board members it is 5213 kuna, or 0.65 salaries. For craftsmen subject to profit tax, dental technicians, physiotherapists, film workers, athletes… this amounts to 1.1 average gross salary.

Tax advisors acknowledge that management board members exploit numerous loopholes in the regulations, so on their advice, for example, they establish a fictitious family farm where the contribution base amounts to only 0.38 average salaries, even though everyone works as members of the management boards of their companies.

There are about 165 thousand family farms, and besides them, priests pay a privileged base of 0.38 – at 3047 kuna, as well as individuals sent for professional training without establishing an employment relationship.

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Directors pay a total of 1940 kuna in monthly contributions, of which 1042 kuna is for pension, 782 kuna for health, and about 115 kuna for other contributions. From next year, this amount would increase to 3382 kuna. Although Croatian regulations do not obligate companies to pay net salaries to management board members, the payment of contributions is mandatory.