Social security contributions in detail
Social contribution rates are divided into the following rates, which must be paid by the employer: pension insurance at 20% (consists of 15% solidarity insurance and 5% savings insurance) and health insurance contributions at 16.5%. Unemployment insurance (previously 1.70%) and insurance against injuries at work (previously 0.5%) were abolished as from 1 January 2019.
Pension insurance contribution is paid from gross salary (gross 1). Health insurance contributions are paid on top of gross salary (gross 2).
No additional social contributions are payable and there is no lower threshold or cap on payments. The employee is required to pay 20% and this is withheld and paid by the employer.
There is no cap on contributions. The payments are made with each salary payment, i.e. each month.
Author: Divjak, Topic & Bahtijarevic
Date: March 2019
Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.