Social security contributions in detail

Social security covers pension, health and medical insurance, as well as unemployment benefits and auxiliary insurance. The employer should pay the employer’s and employees’ social security contributions by the last working day of the month after the one the contributions apply to. Since 1 January 2017, the basic rate for the main pension contribution has been 20% (i.e. a 6.67% employee contribution and a 13.33% employer contribution) and the rate for healthcare and medical insurance has been 7.10% (i.e. 2.55% from employees and 4.55% from employers).

From 1 June 2016 to 31 May 2019 the monthly contribution rate for auxiliary insurance is 3.5% for employees and 3.5% for employers. The rate will change on 1 June 2019 to 3.25% for employees and 3.25% for employers, and will change again after 2022. Contributions for unemployment and other matters continue to apply (in total 6.96%, i.e. 3.28% for employees and 3.68% for employers).

Under this reform, social security contributions will be payable up to a cap of EUR 5,860.80 (maximum salary) per month. This means that the basic rate for social security contributions (i.e. pension, healthcare, auxiliary and unemployment benefits etc.) will be 16% for employees and 25.066% for employers.

Note that the threshold for liability to pay is annual earnings of EUR 7,032.96. Note also that the rates can vary according to the type of job, for example, for mechanics and doctors working under employment contracts, along with certain employees in heavy industry and doing hazardous work.

Voluntary contributions are possible for those affiliated to a supplementary insurance scheme.

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Author: Kremalis Law Firm

Date: April 2020

Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.