Social security contributions in detail

The social security contribution or ‘social tax’ payable for each employee is 35.09%. From this amount, 11% is paid by the employee and 24.09% by the employer. However, the employer is responsible for withholding and payment of the entire social tax on a monthly basis.

Social security covers the risk of loss of income to a person or his or her dependants due to age, unemployment, accident at work or occupational illness, disability, sickness, maternity, childcare, or expenditure in connection with the death of the person or his or her dependants. As of 2018, social security contributions also cover health insurance.

The maximum amount of social contributions is EUR 62,800 per year.

In addition, solidarity tax is payable by those whose income exceeds the maximum contribution. The solidarity tax rate is 35.09% and is calculated on the amount exceeding the maximum contribution.

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Author: COBALT

Date: April 2020

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