National Social Security Fund Memo 559 dated 24 July 2017 based on Law 27 dated 10 February 2017 "Increase in and settlement of the sickness and maternity contributions

Monday, July 24, 2017 - 12:45

Article 4 of the above memo addresses the increase in and settlement of the sickness and maternity scheme contributions as follows:

 

Increase in contributions

Starting from 16 February 2017, the employer and employee contributions towards the social security sickness and maternity scheme have increased from 9% to 11% of a maximum LBP 2,500,000 as follows:

  • 8% (previously 7%) of the salary (subject to a ceiling of LBP 2.5 million) to be borne by the employer
  • 3% (previously 2%) of the salary (subject to a ceiling of LBP 2.5 million) to be borne by the employee

Settlement of contributions

The settlement of the sickness and maternity scheme contributions in accordance with the above new rates (8% on the employer and 3% on the employee) apply as follows:

Companies / institutions with 10 or more employees (monthly settlement):

  • The contributions for the month of September 2017 should be settled based on the new rates.
  • The difference in the contributions for the period from 16 February 2017 to 31 August 2017 should be settled in accordance with an NSSF contributions schedule coded No. 34.

Companies / institutions with less than 10 employees (quarterly settlement):

  • Contributions for the 3rd quarter of 2017 should be settled based on the new rates.

The difference in the contributions for the period from 16 February 2017 to 30 June 2017 should be settled in accordance with an NSSF contributions schedule coded No. 34