Decree Law on Social Security Contributions

Please find below the relevant information contained in the Social Security Guide, that has been translated to English

In regards to the recent measures of employment support approved by the State of Timor-Leste, we have contacted the Social Security Institute (SSI) and confirmed that Employers who continue to operate normally cannot apply for the 60% subsidy granted by the State, but may benefit from (1) the exemption from social security contribution on the amount owed by the Employer and (2) the deferral of payment to SSI of the contribution owed by the Employee.

Please find below the relevant information contained in the Social Security Guide, which we have translated to English :

Employers with Staff operating normally

RIGHTS DUTIES
1. Exemption from the contribution owed by the Employer:On the amount paid by the Employer to the Employee Application: the employer must submit an application

Submission of monthly remuneration statement: the employer must continue to submit the monthly remuneration statements

Withholding the contribution paid by the Employees (4%): 
the Employer must continue to withhold the social security contribution amounts paid by the staff.These amounts shall be paid to social security in the second month after the end of the support provided for in the DL (e.g. if the support ends in May, the amounts shall be paid in July) 
2. Deferral of payment of the social security contribution owed by the Employee (4%) for the second month after the end of the support provided for in the Decree-Law (e.g. if the support ends in May, the contribution owed by the staff shall be paid in July)
3. Debt forgiveness and exemption from sanctions: the Employer with accumulated debt to social security, acruing from October 2017 to February 2020, shall benefit from forgiveness of 10% of the accumulated debt amount, in addition to exemption from fines and late payment interest, provided that the entire amount due is paid by 31 January 2021 Payment of outstanding social security contributions: the employer must settle the outstanding amount to social security: payment can be made in installments, when requested
4. Social Protection and Career Registration: the support granted is without prejudice to the registration of workers’ contributory careers and will not affect their access to social benefits provided for by law  

Hence, if you are interested in this exemption, kindly fill in and submit to SSI the application attached, disregarding Section 3 – Rekerimentu Subsidiu Extraordinariu (only the Employers who resort to suspension / reduction may apply for the 60% subsidy).

There is no need to provide any other documents in order to apply for this exemption / deferral of Social Security contributions.

Kindly notify the person responsible for processing your payroll that, once you have submitted this application, the Social Security Institute will issue its payment guides for the months of March, April and May with exemption in regards to the contribution owed by the Employer and deferral in regards to the contribution owed by the Employee. Also inform the payroll manager that the amounts owed by the staff should continue to be withheld.