Board members and executive directors must obtain insurance if not covered by compulsory insurance on any other basis. Regulated insured status refers to a natural person who has registered, or should have noted, with the mandatory insurance holder as an insured person based on compulsory insurance, which requires them to calculate and pay contributions.
The monthly base for calculating contributions for the insured
The statistically determined average wage is the monthly basis for calculating contributions for the insured based on the board member and the executive director.
According to the announcement of the State Statistics Office on the average monthly gross wage per employee in legal entities of the Republic of Croatia for the period January – August 2022, the average salary is HRK 10,301.00, which, converted into euros, amounts to EUR 1,367.18.
Therefore, the monthly basis for calculating contributions for full-time work of board members and executive directors cannot be lower than the product of the sum of the average salary of EUR 1,367.18 and the coefficient of 0.65, which amounts to EUR 888.67 at the beginning of 2023.
According to the decision of the Tax Administration, contributions are paid independently by the compulsory insured. The mentioned costs are not company costs.
The base for calculating contributions does not have to be equal to the prescribed base
The basis for calculating the contributions is the prescribed gross wage of the board member or executive director and doesn’t need to be equal to the specified ground. Salary in gross amount can be higher, lower or equal to the prescribed basis for calculating contributions.