News Local Contributions to GHS to rise to 2.65% from March

Contributions to GHS to rise to 2.65% from March

General health service (GHS) contributions will rise from the current 1.7% to 2.65%  effective from March as phase two of the GHS kicks in.

The contributions are deducted from salaries, pensions and other income such as rents paid to natural persons.

The increase aims to boost the GHS budget as it gears up to cover increased costs with the addition of new services from June 1, including in-hospital care.

Since March 1, contributions have stood at 1.7% and February salaries will not be affected. But March wages will reflect the bigger deduction. For example, someone on a €1000 monthly salary currently pays €17 to the GHS and will from next month pay €26.50.

The same applies to pensioners and state officials.

Employers will also see an increase what they contribute for their employees from the current 1.85% to 2.90%. Thus for an employee on a €1,000 salary, employers who now pay €18.50 will have to pay €29.

For the self-employed the contribution will rise from 2.55% of their monthly revenue to 4%.

On income, mainly from rents, interest and dividends, the deduction will rise from 1.70% at the end of February to 2.65% from March 1, 2020.

The state also makes contributions to the GHS – for employees, self-employed, pensioners or state officials. This stood at 1.65% and will now rise to 4.7%.

With the full implementation of the GHS on June 1, beneficiaries will also have available in-hospital care (surgery, hospital care) accident and emergency services and ambulance services. GHS will also cover nursing, midwives, physiotherapy, clinical psychologists, clinical dieticians and others as well as palliative care and rehabilitation.

The GHS will also cover one visit to the dentist a year for teeth cleaning.

Consultations for the full implementation of the GHS are well advanced as the Health Insurance Organisation is in talks with health professionals who will offer their services through the system.

Talks are also under way with private hospitals which have expressed an interest in joining the GHS. A total of 45 private hospitals in all the districts are in talks while the Health Insurance Organisation is also in talks with the State Health Services Organisation for state hospitals to join the system.

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