The Public Revenue Office made an announcement on 04.05.2016 for deductions from salary in the MPIN calculation.

In order to protect the rights of workers under the provisions of the Law on Labour Relations, the Public Revenue Office has strengthened the control of net salary payment of the employee (effective net) in the MPIN-calculations.

The employee is entitled to remuneration - salary, in monetary terms, in accordance with the law, collective agreement and employment contract. Upon payment, the employer must comply with the minimum fixed amount determined by the collective agreement, in accordance with the law, which directly obliges the employer. The employer may retain the payment of the salary only in legally prescribed cases. The Law on Enforcement stipulates that the execution that can be performed on salary and pension, as well as compensation in lieu of salary, for a claim based on legal support, compensation for damages that result from health problems, decrease or loss of working capacity and compensation for lost support due to death of the provider, can be implemented to the amount of one half, and for claims on other grounds - amounting to one third of the salary or pension.

Based on the above, there is a new control measure introduced in the MPIN calculations for the effective net salary payment per employee (field 3.31 of the client software). If the employer makes an entry of paid net salary to an employee that is less than the legally defined limits, a warning will be generated (917) - Effective net salary is less than the net basis. To correct this warning, the calculation of net salary has to be reconciled with the legal regulations.

The Public Revenue Office informs the employers that disobeying the legally prescribed maximum amount for deduction from salary is treated as risk and risky employers will be controlled in accordance with the law.

Guidelines for deductions from salary in the MPIN calculation (announcement)

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