Contributions Collection

Payment of social security contributions:

Social Security Fund:
A non-profitable institution with a humanitarian mission that provides economic and social protection to all community members. The benefits are provided to the following categories:

• Old-age pension.
• Disability pension, due to work injury.
• Disability pension, not due to work injury.
• Pensions to survivors of the secured.
• Basic pension to persons deprived of their bread-winner and to persons having no source of income and widows.

Brief information regarding social security contributions:
This process is done by Registering all employers in the social security system, followed by registration of all employees, after which social security contributions are deducted from their salaries on a monthly basis and deposited (cash or certified checks in the social security fund treasury). And upon reaching the age of termination, death, or disability, a pension for the secured is settled in accordance with the provisions of Law No. 13.

The contribution:
It is the deducted percentage imposed by the regulations of Registration, Contributions, and Inspection in accordance with the provisions of Law No. 13, for each contributor in exchange for social security benefits. This amount is part of the social security fund revenues. (The percentage may be amended in accordance with the provisions of Law No. 13).

The secured:
Those who benefit from the provisions of Social Security Law No. 13 of 1980, whether he is a contributor or a non-contributor.

The contributors:
Those who benefit from the provisions of Social Security Law No. 13 of 1980, in return for payments of social security contributions.

The categories of contributors in the social security system:

• Stakeholders
• Public sector employees
• Self-employed
• People working under employment contracts

Employers:
Employment Institutions or enterprises that are subject to the provisions of social security Law No. 13 and the regulations of Registration, Contributions, and Inspection, namely:

• Public sector institutions.
• Business owners, whether individuals or companies either citizens or foreigners.
• Enterprises with respect to their stakeholders.
• Agricultural and industrial entrepreneurs.
• Owners of professions and crafts.

The salary or wage:
It is the actual salary or wage which determines the employees’ contributions. It also settles their entitlement to pensions and other social security benefits. Both salaries and wages may include bonuses and other financial benefits provided that they have a stable regular basis, either paid in cash or in kind.

The income:
It is the assumed income of the stakeholders and the self-employed, determined by the provisions of the regulation of registration, contributions, and inspection.

Mandatory contributions:
Payment of contributions is mandatory according to the provisions of Social Security Law No. 13 of 1980. The contributions continue throughout the service period of the secured until the age of termination of service. Taking into account that the deductions of contribution from the salary or income shall be suspended from the date on which he\she is entitled to the maximum pension (35 working years). The contributions are deducted from employees’ salaries through various employers in accordance with the provisions of the Social Security Law.

• During the period from 01/06/1981 to 27/04/2010, the secured, the employer, and the treasury were completely exempted from paying the branch – after the secured reached the maximum pension – according to labour instructions No. 6 of 1982.
  
• On 27/04/2010, the Committee on Technical Applications met at the request of the Administration of Registration, Contributions, and Inspection and decided that labour Instructions No. 6 of 1982 are not in conformity with the law. Only the secured should be exempted from his contribution to the branch, and the rest of the contribution shares for the employer and the public treasury remain unchanged.
  
• On 01/08/2015, Labour Instructions No. 6 of 1982 were reinstated under Labour Instructions No. 1 of 2015 concerning the suspension of the deductions of branch contributions.
  
• Financing the benefits of the Social Security Fund is done primarily through the contributions, considering that they are the fundamental source by which the Fund can fulfill its obligations towards the secured by disbursing monetary benefits on time.