Starting in 2025, the calculation of an entrepreneur’s personal salary will be adjusted to new parameters affecting taxes and contributions. An entrepreneur’s personal salary is not defined by the Labor Law and may be lower than the minimum wage. Entrepreneurs determine its amount themselves, as the law does not prescribe a minimum or maximum amount.
Personal salary is defined as a gross value, which includes the entrepreneur’s net income along with the corresponding taxes and contributions. The tax base is the gross amount of the personal salary reduced by the non-taxable portion, which in 2025 amounts to 28,423 dinars. The income tax is calculated at a rate of 10%. If the gross salary does not exceed the non-taxable threshold, no tax is paid.
The calculation of contributions depends on the amount of the personal salary. Contributions are paid for pension and disability insurance (24%), health insurance (10.3%), and unemployment insurance (0.75%). However, if the entrepreneur is employed by another employer or is a pension recipient, they may be exempt from paying certain contributions.
The minimum contribution base for 2025 is set at 45,950 dinars, while the maximum is 656,425 dinars. If an entrepreneur fails to pay their personal salary on time, they are required to pay contributions based on the minimum base. The conversion from net to gross salary depends on whether all contributions are included or only some, with specific formulas applied for the calculation.
Changes in the salary calculation system provide entrepreneurs with greater flexibility in planning their income, but it is important to consider the effects on taxes and social security rights. The decision on the amount of personal salary directly affects future benefits within the social security system, making it crucial to carefully evaluate the optimal payment model.
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