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The basic source of funding of compulsory insurance (retirement and disability insurance, health insurance and unemployment insurance) are contributions.

Paying in the prescribed contributions (the control of calculating and paying of which is in the Republic of Serbia performed by Tax Administration) establishes resources by which the social insurance institutions (Republic Fund for Retirement and Disability Insurance, Republic Fund for Health Insurance and the National Employment Service) execute their duties stipulated by law and other regulations regulating these areas, that is, provide contributions from respective areas of insurance (pensions, pecuniary benefits, medical services, etc.).

The institute of compulsory social insurance contribution is in its entirety regulated by a single law – the Law on compulsory Social Insurance Contributions. The law stipulates the contributors calculating and paying in contributions, contribution bases and contribution rates, additional contributions for the period of insurance calculated with reduced service years for retirement, the manner of calculating and paying contributions in, and the like.


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