100% exemption of fines and interests on delays till end of June; 50% exemption applies till end of December

Insured entities benefit from new exemptions for the first time

A total of LE 110 million...

100% exemption of fines and interests on delays till end of June; 50% exemption applies till end of December Insured entities benefit from new exemptions for the first time A total of LE 110 million has been collected in delayed pay-offs of the subscription payments of 102 thousand public and private sector establishments, insuring with the Social Security Fund. Sums which benefitted from exemption in February and March are around LE 63 million, according to a Ministry of Finance official source. The exemptions are allowed by Decree Law 6/2011 which stipulates that insured persons, establishments and employers be exempted from 100% of fines and other applicable extras resulting from delays in paying off insurance subscriptions. The source asserted the National Organization for Social Insurance (NOSI) will continue to apply these facilities till the end of June. Only 75% of exemptions will apply to those paying between 1 July and 30 September, following which the exemption rate will be reduced to 50% for payments till the end of December. This applies to all subscriptions and other insurance payments due by the end of January 2011 in social insurance offices all over the country. This measure is part of a policy designed to alleviate the burden of the insured persons and establishments in the current circumstances witnessed by Egypt. This is the first time, the source added, when all insured entities, including Egyptian expatriates and employers under law 108/1976, benefit from these new facilities which were previously confined to establishment owners. The Decree Law will help settle the situation of many employer pensioners under law 108 who were not able to settle their pensions before paying off their debts which were often huge sums accrued because of the fines and interests. Insurance sums owed by employers to the National Organization for Social Insurance (NOSI) include the due monthly subscriptions covering their personnel which are deducted from salaries, in addition to the quota paid by the employer—total sums due at the beginning of the month, following the accounted for month, for the basic salary and the variable salary. When there is a delay, the employer is obligated to pay annual additional sums proportional to the delay period to the National Organization for Social Insurance (NOSI). The delay period is calculated from the due date to the end of the month of actual payment; the due interest is quoted from the National Bank rate of that due date with an additional 2%. Furthermore, exemption from the delayed payment fines and interests apply to sums due until 30 January 2011 for all workers in Egypt and Egyptian expatriates working abroad. The source added that the new law would help reduce the volume of debts due to the National Organization for Social Insurance (NOSI) by the insured persons and entrepreneurs—a goal the Organisation is seeking to achieve in the near future. (Source: Ministry of Finance)