The Influence Of The Reduction Of The Employers’ Social Insurance State Contributions On The Staff Expenses. Case Study For Public Institutions Of Lower Secondary Education

Public institutions of lower secondary education are financed mainly from the public resources allocated from the local budget. Expenditures incurred from these resources have a maximum limit and a destination set out in the budget of each educational unit. The revenue and expenditure budget or only the expenditure budget of a lower secondary education institution provides for the maximum amounts to be used for the expenses made throughout a budgetary exercise. Therefore, reducing the share of social security contributions from your employer by five percentage points would affect the budget of such institutions as it would lead to a modification of the social insurance contributions expenses. In this paper we have described the structure of the current expenditure of a lower secondary education institution, especially with regard to staff expenses, because they hold the largest share in the total expenditure constantly incurred by the units concerned and are affected by the social security rate change. We have also presented the theoretical aspects related to the staff expenses, the budgetary execution phases that staff expenses must cover, the accounting treatment of costs of employers' social insurance contributions, the recognition of employers’ expenses for the social insurance State contributions in the bookkeeping of lower secondary education institutions, as well as the influence of changes in rates of the social security State contributions from the employer on the staff expenditure of the institutions mentioned.