Social security contribution arrears
27 May 2021
How can existing contribution arrears be reduced? With regard to the payment deadline of 30.6.2021, ÖGK will send a second payment information with the current status of outstanding contributions to all firms in the next few days to facilitate early planning. We have summarized for you which options exist if a firm is currently unable to pay corona-related contribution arrears:
Corona-related contribution arrears at ÖGK can be gradually reduced within the framework of the so-called 2-phase model. While phase 1 essentially serves to settle the contribution arrears accumulated up to and including June 30, 2021 (depending on the financial capacity of the company) by September 30, 2022 at the latest, phase 2 aims to reduce any remaining contribution arrears thereafter by June 30, 2024 at the latest.
- Payment target end of June 2021 (phase 1)
The contribution arrears from the contribution periods February 2020 to May 2021 must be paid by 30.6.2021 at the latest. A formal application is not required by law. But according to ÖGK, an informal e-mail to ÖGK is necessary.
- Contribution periods as of June 2021
Attention: For contributions from the contribution period June 2021 the general due dates and payment periods apply again. This means that the current contributions must be paid by the 15th of the following month (taking into account a three-day respite period)!
- Contribution periods January to May 2021
In the event of credibly demonstrated corona-related liquidity problems, it is possible to claim deferrals until June 30, 2021 for the contribution periods January to May 2021.
- Contribution periods May to December 2020
Contributions for which installment payments or deferrals already exist may also be paid until June 30, 2021 at the latest, in deviation from the respective agreement already made. However, in view of their previous economic considerations (e.g. to avoid interest on arrears), the employers are free to leave existing installment agreements that expire earlier unchanged
- Contribution periods February to April 2020
June 30, 2021 is the statutory payment date for contributions deferred without interest for the contribution periods February to April 2020.
- Installment agreements phase 1
If it is foreseeable that the contributions in arrears cannot be paid in full by 30.6.2021 for reasons of company liquidity, an application for payment by installments - with installment payments up to 30.9.2022 at the latest - can be submitted. This will be possible electronically via the WEB-BE customer portal (WEBEKU) as of 1.6.2021. Automatic deferral of arrears is not possible.
For the period from July 1, 2021 to September 30, 2022, the default interest rate will be temporarily reduced by two percentage points - from the current 3.38% to 1.38%!
- "Safety car" phase
In the event of liquidity problems, it is possible to agree individual solutions with ÖGK. A reduction of the first installments to EUR 0 is possible until the end of September 2021.
- Installment agreements phase 2
If, despite demonstrably intensive efforts on the part of the Company, there are still partial contribution arrears from the contribution periods February 2020 to May 2021 as of September 30, 2022, these can be settled in the form of an installment agreement under the following stricter conditions until June 30, 2024 at the latest:
- During the period from July 1, 2021 to September 30, 2022, at least 40% of the original premium arrears must be paid.
- Only contributions that could not be paid in full due to an installment agreement valid until September 30, 2022 may be affected. Contributions from the contribution period June 2021 onwards may not be the subject of an installment agreement!
- In the installment payment period, there shall be no loss of date until September 30, 2022.
- A credible case must be made that the contribution arrears remaining as of September 30, 2022 can be paid in addition to the current contributions due.
- The application must be received by ÖGK by 30.9.2022 at the latest.
Contributions for employees on short-time work, Covid-19 leave of absence or segregation under the Epidemics Act continue to be exempt from deferrals or installment agreements. In any case, these contributions must be paid to ÖGK by the 15th of the calendar month following the payment of the allowance. Attention: If these contributions are not paid, no installment agreements are possible!
Similarly, all non-corona arrears are not covered by these provisions and are to be paid on the usual dates, terms and conditions.
Up-to-date account information can be accessed electronically at any time via ÖGK's WEB-BE customer portal (WEBEKU)!