Deferring social insurance contributions
Berlin, March 24, 2020.
If employers in Germany are facing a financial crisis owing to the corona pandemic, they will not have to pay social insurance contributions – for a limited period. These contributions can be deferred at the employer’s request.
“This is an important decision benefiting companies that run into financial problems owing to the corona crisis,” said Hildegard Müller, President of the German Association of the Automotive Industry (VDA).
These payments may initially be deferred for a maximum period up to the date when the contributions for June become due. A surety is not required. Furthermore, for many companies it is important to know that interest should not be levied on the deferred payments.
“These deferrals and the waiving of interest will make a crucial difference in securing the companies’ liquidity. We have worked hard for these regulations,” Hildegard Müller explained.