Social security contributions in detail

Both employers and employees pay social security contributions, unless specifically exempted.  As a general rule, these include the following types of insurance: (i) old age and survivor’s insurance; (ii) disability insurance; (iii) loss of earnings insurance; (iv) unemployment insurance; (v) family allowances; (vi) accident insurance; and (vii) pension. In most cases, social security contributions are shared in equal parts between the employer and the employee. With the exception of accident insurance and pension, social security contributions are charged at fixed statutory rates.  Employees’ contributions are deducted from the employee’s gross salary by the employer, while the employer’s contributions are charged on top of earnings. The employer is responsible for paying his or her own contributions as well as the employees’ contributions to the competent authorities or insurance providers.  

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Author: Blesi & Papa (DE)

Date: April 2020

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