Additional remuneration for termination of employment by mutual consent and social security contributions

According to the letter of the Social Insurance Institution Headquarters of 22 November 2013 (case reference Dl/100000/451/1371/2013), additional benefits granted to an employee in connection with termination of employment by mutual consent should not be subject to social security contributions. This position definitely improves the situation of employees who have agreed to end cooperation with the employer and are to receive additional benefits for this. In practice, the „net” amount they will receive in such a situation will be much higher than what they would receive if they were paid their normal salary, covered by all charges. Awareness of this interpretation will definitely allow for better negotiation of the terms of leaving work by mutual consent.