Minimum directors’ wage increase in 2023

From January 1, 2023, the minimum director wage, i.e. an employed board member, has changed according to the provisions of the Contributions Law. For full-time work, the monthly basis for calculating contributions cannot be lower than the product of the average wage and the coefficient of 0.65. Therefore, the minimum director monthly gross wage base is EUR 888.67.

The newly determined minimum wage calculates for January 2023 and mostly pays in February. 

An increase of 8.01 %

Compared to 2022, when the minimum monthly gross director wage was 822.76 euros, there was an increase of 65.91 euros or 8.01 %.

The net amount of the director’s wage depends on tax benefits and his residence place or the surtax rate. Please note that directors are not obliged to pay themselves a net salary, but they are obliged to pay contributions and taxes.

Contributions mandatory insurance calculation

In the Order on bases for contributions mandatory insurance calculation for 2023, the Finance Ministry published the bases for calculating. The grounds are a product of the average wage amount and the coefficient for analysis.

Suppose an employed board member, trading company executive director, or cooperative manager liquidator did not pay total basic contributions. In that case, the Tax Administration will send a decision for paying the contributions difference (like a natural person). The mentioned difference is a private expense of the board member and cannot be an expense of the company.

What in case of non-payment of contributions?  

If the prescribed contributions taxpayers are not paid on an annual basis, then at the year’s end Tax Administration will issue a Decision according to which calculates contributions, and that on a higher base. The company director is then obliged within 15 days to pay according to the new solution from his funds and not at the company’s expense.