Social security contributions in detail

Social security contributions cover unemployment, disability, old age, survivors’ benefits and sickness.

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. The contribution rate payable by the employer is equal to an average of 23.19% of the employee’s salary up to a maximum salary of EUR 57,232. This average percentage of 23.19% will be lowered to 18.19% where the employment agreement is for an indefinite period and is not considered an on-call agreement. There is no overall cap on contributions for employers.

The employee pays 27.65% up to a maximum income of EUR 34,712. Annual employee contributions are capped at EUR 9,483.

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.

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Author: Bronsgeest Deur

Date: April 2020

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