The term social tax was substituted by social insurance contributions, thus emphasizing principles of social insurance.

In addition, the compulsory social insurance contributions are assumed.

The Order of the Council of Ministers of 29 January 1990 concerning the level and basis of calculation of social insurance contributions, notifying to social insurance and accounting of social insurance contributions and benefits (Dziennik Ustaw of 1993 No. 68, Text 330)

Therefore, compulsory contributions to a social insurance scheme must not necessarily result in the payment of insurance benefits.

The revenue of this Fund comes from social insurance contributions and complementary State budget subsidies.

250. The main fund financing social security expenditures, the Social Insurance Fund, was planned to cover expenses from collected contributions.

From December 1993 to December 1994 the number of employed women liable to pay social insurance contributions rose by roughly 1.6 per cent which corresponded to the increase in the total number of employees liable to pay social insurance contributions.

Social insurance

The object of the social insurance contributions of employees was harmonised with the object of the personal income tax.

At the end of December 1994 9,740,000 women were in employment liable to the payment of social insurance contributions.

entry into force of the Amended Act on Social Reform in Agriculture, compulsory contributions to the statutory pension insurance.

People carrying out economic activity pay social insurance contributions equal to 40 per cent of the basis of calculation.

186. The long term care insurance, which is the fifth pillar of the social insurance scheme, is financed from contributions paid by employers and employees, pensioners and pension insurance funds on the basis of solidarity.

The total number of employees liable to pay social insurance contributions accounted for an increase of only 10.9 per cent.

Social insurance contributions for workers are payable totally by employers they amount to 45 per cent of the wages paid.

Social insurance payments

Social insurance allowances

The social insurance subsystem is funded primarily by payments and contributions (11 and 16 per cent, respectively) and by tax revenue.

Private social insurance schemes

The share of women in the total number of employees liable to pay social insurance contributions thus amounts to 46.4 per cent.

Public works (refunding of a part of remuneration and social insurance contributions to organizers of work in the field of infrastructural investments).

Payment of such benefits is financed from the weekly contributions by employers and employees to the Social Insurance (Short term benefit) Fund.

The spouses and children of persons who are members of the statutory health insurance are insured as family members without additional contributions unless they are engaged in employment liable to the payment of social insurance contributions or have income exceeding a certain ceiling.

243. Social insurance benefits for farmers are paid from the contributory Farmers apos Social Insurance Fund.

Other constraints include lack of inter firm linkages, unreliability of suppliers, obsolete technology and old machines, and high taxes and social insurance contributions.

Source Social Insurance Board, www.ensib.ee

Social insurance system 366 80

3) social insurance and assistance

The payment of pensions is financed by social insurance contribution payments (the state social insurance special budget).

Certain tasks in the field of social insurance are also carried out by establishments which calculate and pay short term benefits to workers and make settlements with the Social Insurance Institute in respect of contributions due, decreased by the amount of benefits paid.

Social insurance system Social insurance ensures social stability and security in the society, granting to every payer of social insurance contributions a substitution of income that corresponds to the person's contribution payments at the time when the person loses her his current income, upon becoming unemployed, taking the maternity leave, falling ill, becoming disabled, retiring, suffering an accident at work or losing the provider of the family.

In December 1994 the number of employed foreigners liable to pay social insurance contributions had risen by 37.4 per cent as against December 1985.

The artists apos social fund transfers the contributions to the insurance funds (Federal Insurance Institute for Salaried Employees, local sickness fund or substitute fund, long term care insurance fund) which provide the regular benefits for artists and publicists if the contingency arises.

Thus, the contribution of every employee in social insurance was not related to the scale of social insurance services and the employee was not interested in developing her his social insurance.

qualifying period Contributions to the Farmers apos Old Age Security and as from the entry into force of the Amended Act on Social Reform in Agriculture, compulsory contributions to the statutory pension insurance

Operating in the country is a system of insurance that takes two forms State social insurance and voluntary social insurance (article 215 of the Labour Code).

Social insurance reform 358 365 79

Allowances and other social insurance benefits

If a business partnership was involved, spouses could pay social insurance and build up their own social insurance record.

The payment of disability pensions is financed from the social insurance contribution payments (the state social insurance special budget.

The payment of survivor's pensions is financed from the social insurance contribution payments (the state social insurance special budget).

In 1998, the Law On State Social Insurance became effective, introducing changes in the area of financing social insurance.

The decrease in the number of employed men liable to pay social insurance contributions was markedly stronger 1.2 per cent less than the year before.

123. Of almost 2.2 million employed foreigners liable to pay social insurance contributions (September 1994), less than 25 per cent had jobs as skilled workers.

137. Social insurance covers workers apos family members for all forms of insurance.