Compensation and differentials for a self-employed worker

Compensation calculation:

• Compensation rates will be 25% of the benefit calculated according to income as self-employed alone during the quarter preceding reserve duty, up to the ceiling of maximum reserve service benefit per day.
• In case the reservist is both a salaried and self-employed worker, or receives a benefit based on previous income, the compensation is calculated according to income as self-employed alone.
• When the income as self-employed is lower than minimum benefit rate, compensation is calculated according to the minimum benefit.
• For months where reservist did not have any income as self-employed, compensation is calculated according to the minimum benefit.
• Benefit and compensation total will not exceed the maximum benefit rate, including when the reservist is both salaried and self-employed.
• Tax at source, as provided by law, is deducted from the compensation.
• Upon receiving income tax assessment differentials, the rate of compensation to be paid will be calculated anew. If, based on this calculation, compensation differentials are due to the reservist, the differentials will be paid to him automatically on his bank account. If a debt was created, it will be collected according to law.

Differentials for the self-employed

A self-employed worker whose income, according to taxation assessment, was higher than the income according to which he/she was paid the reserve service benefit, will be paid differentials along with linkage to the Consumer Price Index. If his/her income was lower than the income according to which he/she was paid the reserve service benefit, he will be required to repay the differentials along with linkage differentials. The reserve service differentials are calculated when the National Insurance differentials are calculated according to the assessment.