Voluntary social insurance: how to protect yourself against unexpected situations

Paying voluntary social insurance gives citizens protection against unexpected life situations. This type of insurance secures an income in the event of illness, maternity, job loss or reaching retirement age. Employers pay social insurance contributions for their employees from their gross wages, and in some cases the state may pay the insurance, for example during maternity leave. There are, however, periods when nobody pays the insurance for a citizen, and it is then possible to pay it voluntarily.

WHO CAN TAKE OUT VOLUNTARY SOCIAL INSURANCE?

Voluntary social insurance is suitable for:

• Unemployed people who are registered with the Labour Office (ÚPSVaR).
• Students who have reached the age of 16.
• School graduates who do not yet have a job.
• Women who are planning maternity leave and are not employed.
• People who are voluntarily unemployed.
• Self-employed persons (SZČO) whose income does not exceed the statutory threshold for compulsory insurance.
• People who have not become liable to pay compulsory social insurance.
• Women who receive parental allowance for their first child and lost their job during maternity or parental leave.

TYPES OF VOLUNTARY SOCIAL INSURANCE

An individual can choose from the following types of voluntary insurance, or a combination of them:

1. Voluntary sickness insurance: Replaces income when gainful activity is lost or reduced during sick leave (PN), pregnancy and maternity.

2. Voluntary pension insurance: Secures an income after reaching retirement age or in the event of a decline in the ability to perform gainful activity.

• Old-age insurance: For income in old age and in the event of death.
• Disability insurance: In the event of an adverse health condition or death.

3. Voluntary unemployment insurance: Replaces income during unemployment, on condition that the person is actively looking for work.

VOLUNTARY SOCIAL INSURANCE PACKAGES

The Social Insurance Agency (Sociálna poisťovňa) offers combinations of voluntary insurance in five packages:

1. Voluntary sickness insurance, voluntary pension insurance and voluntary unemployment insurance.
2. Voluntary sickness insurance and voluntary pension insurance.

3. Voluntary pension insurance.

4. Voluntary unemployment insurance.

5. Voluntary pension insurance and voluntary unemployment insurance.

PAYING CONTRIBUTIONS AND ENDING VOLUNTARY INSURANCE

A voluntarily insured person sets their own assessment base within the range laid down by law and pays the contributions monthly, by the 8th day of the following calendar month. They can change the assessment base no earlier than 6 months after the last change.

The insurance can be ended by deregistering, or if the contributions are not paid for two consecutive months. The insurance does not end while the person is receiving maternity benefit, sickness benefit or nursing benefit.

ASSESSMENT BASE AND INSURANCE RATES IN 2024

The assessment base may not be lower than €652 or higher than €9,128. The insurance rates are:

• Sickness insurance: 4.40%
• Old-age insurance: 18.00%
• Disability insurance: 6.00%
• Solidarity reserve fund: 4.75%
• Unemployment insurance: 2.00%

EXAMPLES OF CALCULATING THE AMOUNT OF VOLUNTARY INSURANCE

Example 1: Voluntary pension insurance alongside an employee’s compulsory insurance

Peter, an employee with a gross wage of €3,500, has registered for voluntary pension insurance with an assessment base of €9,128. He will pay contributions on €5,628 (the difference between €9,128 and €3,500).

Example 2: Voluntary pension insurance and unemployment insurance alongside the compulsory insurance of an employee and a self-employed person

Petra, an employee, has income from employment of €400 and income as a self-employed person of €700. She has registered for voluntary insurance with an assessment base of €1,300. She will pay contributions on €200 (the difference between €1,300 and €400 + €700).

A CALCULATOR FOR WORKING OUT THE CONTRIBUTIONS

On its website, the Social Insurance Agency has made available a calculator that gives a voluntarily insured person an indicative calculation of their contributions. This calculator lets you work out the contributions according to the amount of the assessment base and the type of voluntary insurance chosen.

CONCLUSION

Voluntary social insurance provides important protection against unexpected situations. By choosing the right insurance and paying the contributions, you can secure an income for periods when you cannot work and so protect yourself against financial difficulties. Make use of the tools and options available to choose the most suitable type of insurance for your situation.