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How will we pay for the NHS?

October 10, 2018 at 11:30am
NHS

As from March 1 2019, citizens will start paying 1.7% of their monthly salary to the NHS. How will this amount be deducted from our income?

The NHS will get underway on June 1 2019 (first phase) and is expected to be fully operable by June 1 2020.

During the first phase, citizens will be able to access primary-care services such as doctor visits, buying medicine, lab and other examinations. From June 1 2020, they will be able to access all healthcare services.

Citizens, though, will start paying on March 1 2019, in order to cover the operational costs needed for the first phase to begin.

Public and private employees, pensioners, state officials and rentiers will contribute 1.7% of their monthly income, while self-employed persons will have to pay 2.55%. Employers will contribute 1.85% on each employee’s salary, towards her/his healthcare. Also, the State will contribute 1.65% of the income of each employee/pensioner.

This means that, for example, an employee with a monthly gross income of €1,000 will contribute €17 each month to the NHS. Her employer will add €18.50 and the State €16.50.

These amounts will apply until March 1, 2020, as after they will increase to cover the cost of a fully-operational NHS.

From March 1, 2020, public and private employees, pensioners, state officials and rentiers will contribute 2.65% of their monthly salary. Self-employed persons will have to pay 4% and employers will contribute 2.9% on each employee’s income, towards her/his healthcare. Also, the State will add 4.55% on the income of each employee/pensioner.

The contributions will be collected via three state mechanisms. The Social Insurance Fund will withhold the amount each month for private employees, pensioners and self-employed persons.

For state officials, public sector employees and pensioners the amount will be withheld by the Treasury of the Republic.

The contributions of rentiers and other public officials (i.e. mayors) will be under the jurisdiction of the Tax Department.

According to the regulations, for private employees, self-employed persons and pensioners who receive their pensions from the Social Insurance Fund, the amount will be withheld automatically from their salary, in the same way that their contributions to the Social Insurance Fund are withheld. Through the same process, employers will add their contribution for their employees.

These regulations also cover employees who declare multiple employers (i.e. maids) or employees who have other sources of revenue besides their main salary.

Pensioners who receive their pensions from other funds will have the amount withheld by those funds.

The Tax Department will handle the contributions of rentiers and other public officials.

All contributions will end up to the State’s Health Insurance Fund and will make up NHS’s budget.

Read more:

NHS prices/dates announced