Social security contributions in detail

The basic rate for employers’ contributions is currently 23.81%, while the current rate for employees is 9.19%, with a cap of EUR 102,543 for 2019 for employees who started working after 31 December 1995. These rates apply to blue collar workers in industrial enterprises with a workforce between 15 and 50 employees, but note that other rates apply to employees in other categories and sectors.

Rates may also vary based on the type of contract the employee has (e.g. fixed term or indefinite-term employment contract). The rates we have chosen for the graph refer to indefinite-term employment contracts.

Social security is paid with each salary payment, i.e. each month. It covers retirement, disability and death. In addition to the basic rates, there are further rates (again for blue collar workers in industrial enterprises) that cover unemployment benefits, the employment termination payment (the so-called ‘TFR’), illness, maternity and ‘shock absorbers’, to a total rate of 31.28% for employers and 9.49% for employees.

Note that for 2019 different social security contribution discounts are provided for employers who hire some categories of individuals on indefinite-term contracts. These categories include young people, women, disabled people, refugees and people whose annual income is under a defined threshold.

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Author: Toffoletto De Luca Tamajo e Soci

Date: March 2019


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

 

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