Social Security Taxes
Tax payments to BPS (the Social Security Bank or the Rural Fund) are the dues of every rural enterprise relative to social security. This tax must be paid every four months.
C1) Employer’s contribution
This contribution results from calculating the following variables:
A x IP x NMW x 0.066
= Tax
100
Where:
A = Area
NMW = National minimum wage
C2) Employee’s Contribution. Agricultural enterprises act as retention entities for employees’ contributions. Upon paying salaries, employers must deduct from the employee’s pay the corresponding dues which must later be paid along with the three yearly payments of the employer’s dues.
Agricultural activities include the concept of food and housing allowance, an amount additional to the salary agreed. Deductions applicable to employees vary from 18.125% to 24.125%, depending on specific wage ranges.
