Social security contributions in detail
The contribution rate payable by the employer is equal to an average of 19.52% of the employee’s salary up to a maximum salary of EUR 55,927. The employee pays 27.65% up to a maximum income of EUR 34,300. Contributions are in principle paid on a monthly basis, and included in the payroll tax return submitted by the employer. The social security contribution for employers varies according to the type of job or industry and the number of sick or disabled employees – the higher the number, the higher the contributions. Social security contributions cover unemployment, disability, old age, survivors’ benefits and sickness. Annual employee contributions are capped at EUR 9,483.
There is no overall cap on contributions for employers. Contributions from the employee are included in the tax deduction made by the employer on salary every month. Both the employee’s and employer’s contributions are paid by the employer to the tax authorities every month.
Author: Bronsgeest Deur
Date: March 2019
Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.