›› Supplementary Finance Law for 2015

Supplementary Finance Act for 2015

Measures in favour of social security debtors:

The measures introduced by the Supplementary Finance Act aim to encourage employers to regularise their situation with social security organisations.

The regularisation of these situations results in the cancellation of surcharges and late payment penalties.

Who is eligible?

• Employers who pay the main contributions and outstanding contributions and who are liable for surcharges and late payment penalties.
• Employers who submit a request for a payment schedule for the settlement of main contributions before 31 March 2016, and those whose payment schedule is ongoing.
• Employers who have registered all their undeclared workers within sixty (60) days of the publication of Order 15/01 of 23 July 2015 of the LFC for 2015.

Beneficiaries:

• Debtors who owe only surcharges and late payment penalties should contact the collection services, which will cancel the surcharges and late payment penalties.
• Debtors who wish to benefit from or who are benefiting from a contribution payment schedule may be exempt from late payment surcharges and penalties once the last instalment has been paid. (ART 57 & 58)

Important:

The provisions relating to exemption from surcharges and late payment penalties are applicable until the end of the first quarter of 2016; this means that debtors must formalise their request for a payment schedule before 31st March 2016.

Failure to comply with the payment schedule for contributions by the last due date will result in the loss of the right to exemption from late payment surcharges and penalties.

Penalties: (ART 59)

Any employer who has not registered with social security within the time limits provided for by the legislation in force for the workers they employ, shall be liable to a fine of one hundred thousand dinars (100,000 DA) to two hundred thousand dinars (200,000 DA) per uninsured worker, and to one to six months’ imprisonment, or to one of these two penalties.

In the event of a repeat offence, the employer shall be liable to a fine of two hundred thousand dinars (200,000 DA) to five hundred thousand dinars (500,000 DA) per uninsured worker, and to a term of imprisonment of two (2) to twenty-four (24) months.

However, the provisions of this article shall not apply to employers who, within sixty (60) days from the date of publication of this law in the Official Journal, to register all undeclared workers in their employment.

This enrolment entitles the employer to exemption from surcharges and late payment penalties upon payment of all principal owed contributions .

Key points:

These are exceptional measures aimed at:

• Ensuring workers’ right to social security coverage.
• Encouraging debtors to regularise their situation with social security organisations by offering an attractive and encouraging alternative.