The Ministry of Health and Social Protection issued Resolution 686 modifying the Integrated Social Security Contribution Form (“PILA” for its acronym in Spanish) to temporarily allow the reduced payment of pension contributions during April and May of this year, according to Decree 558 of 2020.
Thus, for the contribution periods of April and May 2020, which payments must be made in May and June respectively, the contribution rates to the General Pension System can be 3% or 16% or the special rate, as applicable.
When the contributor during this period reports a novelty such as temporary suspension of the employment agreement or unpaid leave, he or she may report the rates of 3% or 16%. The partial contribution established in Decree 558 of 2020 only applies to dependent and independent contributors required to contribute to the General Pension System, except for the following categories:
- Substitute mother;
- Beneficiary of the pension solidarity fund;
- Municipal or district council not covered by a health policy beneficiary of the pension solidarity fund; and
- Beneficiary of the unemployed protection mechanism.
When a contributor for a group of its employees applies the 3% rate established in Decree 558, it must report these contributors in a form and in another form, it must report remaining contributors who pay contributions on the full rates.
During this period, the affiliate can make voluntary contributions to the mandatory pension fund. Likewise, when contributor chooses to report the 3% rate for the contribution to the General Pension System during April and May of this year, contributions to the pension solidarity fund will not be required.
On the other hand, this Resolution establishes all regulations for the calculation of default interest according to the contributor type.
Lastly, according to this Resolution, from April 12, 2020 until the calendar month following the termination of the declaration of the health emergency due to the pandemic derived from COVID-19, no default interest will be paid to the Comprehensive Social Security System and payroll fees for the contributions paid out of time, from that date.