Social security contributions in detail
The employer must pay between 26.94% and 35.14% of employees’ salary and the employee must pay between 4.375% and 5.25%, for a total contribution of between 31.315% and 40.39%.
The contributions cover five types of insurance: occupational risk insurance, sickness and maternity, child care, disability and life insurance, retirement and old age pension. There is a cap of 25 times the measure known as the ‘UMA’ (Unidad de Medida Actualizacion), which is an economic reference tied to inflation. The daily rate for 2019 is USD 80.60 (EUR 70.25).
Payments must be made every month.
Author: Basham, Ringe y Correa S.C.
Date: March 2019
Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.