Download 6.1 Labor Agreement 6.2 Social Security Regulations

6.1 Labor Agreement
6.2 Social Security
Regulations
The labor agreement is the contract whereby
one party, the employee undertakes to work
for the other party, the employer, against pay,
for a certain time employment. Collective
labor agreements usually cover a period of
two to three years, after which new terms
are agreed upon for a similar period of time.
The reliability provided by these contracts
benefits both the employer and employee.
In most cases there is a clause which
provides for no strikes or lockouts during
the contract period. All labor disputes where
parties do not reach an agreement must be
subjected to mediation. Parties may request
intervention, or the mediator can ex-officio
compel parties to accept mediation. The
government has the authority to impose a
‘cooling off’ period.
AOV/AWW (General insurance for Old Age /
Widow and Orphans)
The AOV/AWW premium is paid by employee
and employer. The AOV/AWW premium
amounts to 13.5%. The premium is paid by
the employer (9.5%) and by the employee
(4%). The aforementioned percentages are
to be calculated over the premium income
which is maximized at AWG. 65,052 (USD
36,342) and is only due until the employee
reaches the age of 60.
General Health Insurance (AZV)
The AZV premium is paid by the employee and
the employer. The AZV premium is 11.5%. The
premium is paid by the employer (8.9%) and
by the employee (2.6%). The aforementioned
percentages are to be calculated over the
premium income which is maximized at AWG.
85,000 (USD 47,486).
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Sickness and Accident Insurance Premium
This premium is only paid by the employer. The
percentage for sickness insurance is 2.65%.
The percentage for accident insurance varies
from 0.25% up to 2.5%, depending on the risk
involved at the job.