Social security tax rates in Europe 2024

In most European countries, social taxes include contributions to pensions, health insurance, unemployment insurance, and other social programmes. The size of these taxes, as well as the share of distribution between employee and employer, varies substantially from one country to another.

General Trends

• Employee-employer split: Social contributions in most European countries are split between employee and employer. The share of the employer is larger than that of the employee.
• Percentage of wages: Social contributions as a percentage of wages also differ. Whereas in some countries the total amount may reach 30-40 per cent of gross wages, it is less in others.

Some Country Examples

• Germany: In the case of Germany, social contributions refer to health insurance, pension insurance, unemployment insurance, and care insurance. These contributions are shared almost equally by the employee and employer.
• France: The level of social contribution is higher in France compared with most European countries, with a large amount being shared by the employer.
• UK: Instead of the traditional system of social taxation, UK uses National Insurance, where both employee and employer contribute in equal shares.
• Spain: Social contributions in Spain comprise unemployment insurance, pension insurance, and health insurance. Most of the contributions come from the employer.

Below, lawyers, auditors, and tax advisors from Regulated United Europe would like to take a close look at the social tax rate of each European country, as well as at the specifics of its payments.

Social tax in Albania 2024

In 2024, the social insurance rate in Albania remained the same: 24.5 %. This rate is divided between companies and employees: companies pay 15 % and employees pay 9.5 %. These data show that the social insurance system in Albania is stable at the moment.

Central Tax Administration in Albania

Social tax in Latvia 2024

In 2024, Latvia’s standard mandatory social insurance contribution rate for employees insured for all risks was 34.09% of the contribution base: 23.59% paid by the employer and 10.50% withheld from the employee. Different rates applied to certain categories of insured persons.

It is also worth mentioning that social contributions withhold a share of wages. For instance, for self-employed citizens, the tax rate takes 31.13% of the minimum wage, while for those with voluntary payments, the rate is 24.54%.

These data show the general picture of social taxation in Latvia for the year 2024, but for more detailed information, and in cases where an individual case is considered or changes are made to legislation, consult official sources or contact Latvian tax law professionals.

Latvia State Revenue Services

Social tax in Andorra 2024

According to 2024 information, Andorra has structured its taxation system in such a way that it provides low tax rates to be of interest to investors and businesses. There are the following main types of taxes in Andorra:

1. IRPF income tax reaches a maximum rate of 10%. Tax-free amount of the first 24,000 euros of income, 5% on the subsequent 16,000, and above 40,000, it will be a 10% rate. One of the lowest levels of income tax exists in Europe.
2. Corporation tax – IC – is 10% of the profit. For new businesses billing less than €100,000 in the first three years, a rate applies of 5% on the first €50,000.
3. Indirect general tax – IGI, the analogue of VAT in Andorra – standard rate of 4.5%. Reduced rates of 1%, and an ultra-low rate of 0%, as well as a special rate of 9.5% for banking and financial services.

Other more specific taxes are those levied on the transfer of real estate and other municipal taxes.

For standard employment in Andorra, CASS contributions total 22% of the contribution base: 6.5% withheld from the employee and 15.5% paid by the employer. Separate rules apply to self-employed persons and certain other insured categories.

Impostos i taxes

Social tax in Liechtenstein 2024

Liechtenstein’s ordinary corporate income tax is 12.5% of taxable net income, not business revenue. The minimum income tax is CHF 1,800, subject to statutory exceptions. Entity-specific exemptions and the separate rules for groups within the global minimum-tax regime require their own assessment. Liechtenstein’s standard VAT rate increased to 8.1% on 1 January 2024. The reduced rate was 2.6%, and the special rate for accommodation was 3.8%.

Taxation of individuals in Liechtenstein also has its own peculiarities. Personal income tax is fixed at the state and local levels, and the rate can differ depending on the taxpayer’s place of residence. The general income tax rate may range from 2.5 per cent to 22.4 per cent. Liechtenstein also has a preferential taxation system for foreign residents who are not allowed to work in the country and who meet certain requirements.

Business and Working Hub Liechtenstein

Social tax in Lithuania 2024

The following features are typical of social taxation in Lithuania in 2024:

In Lithuania in 2024, the standard employee contribution was 19.50% of the contribution base, including 6.98% compulsory health insurance. Employees participating in supplementary pension accumulation paid an additional 3%. For an indefinite employment contract in the lowest occupational-risk group, the standard employer contribution was 1.77%; other contract types and risk groups could have higher rates. Personal income tax was separate from these contributions. The social contributions by the self-employed persons amount to 5 to 15 percent, depending on the profit earned.

Lithuanian minimum contribution obligations are governed by Lithuanian rules administered by Sodra. Latvia’s VID and Latvian quarterly minimum contribution amounts do not apply to Lithuanian employees.

Ministry of Finance of the Republic of Lithuania

Social tax in Austria 2024

In 2024, Austria’s ordinary unemployment-insurance contribution was 5.9%, normally split 2.95% each between employee and employer; employee reductions applied at lower pay levels. Accident insurance was 1.1%, payable by the employer. Pension and health insurance, other payroll levies and occupational severance contributions must be calculated separately under the applicable rules.

Austria Tax Authority

Social Tax in Luxembourg 2024

In Luxembourg, during 2024, social contributions are shared by the employee and the employer. Employees of firms should contribute to the budget the social contributions, usually deducted by the employer. The pension fund is contributed 8 percent of salary while the sick pay fund is allotted 3.05 percent. The exact rates of interest are subject to the specific conditions of the employment contract and may vary. For more detailed information concerning social contributions in Luxembourg, please contact official sources or tax law specialists practicing in the country.

Luxembourg Inland Revenue (ACD)

Malta – social tax 2024

In Malta, for 2024, the social contribution paid by an employer and employee amounts to 10 per cent of salary. Salaries above €27,679 annually the fixed contribution is €53.23 per week if the employee was born after 1 January 1962. In the case of the self-employed, social tax was 15% of the net annual income from the previous year and the maximum contribution for those who were born after 1 January 1962, was €79.84.

Malta Tax and Customs Department

Social tax in Belgium 2024

In 2024, Belgium’s social security system is still complex and multilayered; it involves numerous contributions and benefits regulated at both the national and local levels. Social contributions in Belgium cover a wide range of social guarantees, including pension, health insurance, unemployment benefits, and other forms of social support.

For income earned in 2024, Belgian personal income tax bands were 25% up to EUR 15,820, 40% from EUR 15,820 to EUR 27,920, 45% from EUR 27,920 to EUR 48,320, and 50% above EUR 48,320. Tax-free allowances and municipal surcharges must be considered separately.

To qualify for social security in Belgium, it is required to be registered with one of the special organizations or the Belgian health insurance company. These organizations operate as gathering agencies for the national social security funds.

Belgium has mutual social security treaties with many countries and foreigners are therefore entitled to the same benefits as Belgians when working in Belgium, granted they fulfill some requirements – such as registering in the local municipality or obtaining the relevant visa.

General Administration of Taxes

Social tax in Montenegro 2024

In 2024, Montenegro continued to bring its tax system into line with European standards, which is relevant in the context of the country’s desire to join the European Union. The tax reform, initiated at the beginning of 2022, brought changes both for physical and legal persons and made the system more appealing both for the domestic investor and foreign ones.

Personal income tax

• In addition, Montenegro has adopted a progressive personal income tax rate that is among the lowest in Europe at a range of 9% to 15%.
• Similarly, the introduction of a non-taxable income base at about €700, one of the biggest in Europe, allows income below this amount to be exempt from taxation, reducing the tax deductions burden of citizens by about 1.5 times.
• Cancellation of compulsory health insurance contributions: Another decision taken in the framework of the reform was the abolition of compulsory health insurance contributions, which significantly lightened the financial burden on physical and legal entities while simultaneously increasing access to medical services.

These changes have made Montenegro more attractive for business and investment, contributing to economic growth and an improved investment climate. The country tries to meet the international standards in establishing a favourable business environment for entrepreneurship while keeping its tax system fair and transparent with low tax rates.

Montenegro Tax Administration

Bulgarian social tax 2024

The system of taxation for natural persons in Bulgaria for 2024 does not include any change in the value of the income tax rate, 10 per cent of the base of assessment. Within Europe, this is one of the lowest income tax rates, and the tax system for Bulgaria is quite attractive both for local employees and investors as well as for foreigners.

Tax return filing in Bulgaria is annual, and it allows the taxpayer to adjust the taxes and/or social security contributions according to income earned in the previous year, including legally recognized expenses that may be deducted from total income, thus reducing the tax base and, as a consequence, the amount of tax payable. Simultaneously, legally admitted expenses for certain categories of activities can be estimated as high as 25% or 40% of the income and thus pay less tax.

The social insurance rate in Bulgaria for the year 2024 is 33.4%, obligatory contribution to cover different types of social security, such as pensions, health insurance, unemployment insurance. These are divided between the employee and the employer accordingly to provide social protection to the denizens of the country.

Tax returns in Bulgaria are filed between 10 January and 30 April of each year for the previous year. There is a possibility for both electronic and paper declarations to be submitted through the official channels of the National Revenue Agency. One of the main benefits from submitting the declarations electronically is that the declaration form will be pre-filled, which will facilitate the declaration process.

National Revenue Agency

Social tax in Netherlands 2024

From 1 January 2024, the Netherlands applied a statutory hourly minimum wage instead of fixed statutory monthly, weekly or daily minimum amounts. For employees aged 21 and over, the gross hourly minimum was EUR 13.27 from January and EUR 13.68 from July 2024. Monthly pay depended on the applicable working hours.

For Dutch taxpayers below state pension age throughout 2024, the combined Box 1 income tax and national insurance rate was 36.97% on taxable income up to EUR 75,518, with 49.50% on the excess. Tax credits could reduce the amount payable. Different rates applied on reaching state pension age. In particular, an increase of about €500 is estimated for the income tax rebate in cases where the annual income does not exceed €115,301.

In 2024, employers could reimburse qualifying commuting and business travel using private transport tax-free at up to EUR 0.23 per kilometre, compared with EUR 0.21 in 2023.

The Dutch state pension age in 2024 was 67 years.

Tax and Customs administration of the Netherlands

Social Contributions in Croatia 2024

In 2024, Croatia launched a number of novelties in the field of taxes. Most of the changes aimed at simplifying the system and alleviating the burden of the taxpayers, stimulating employment and entrepreneurship, and enhancing social justice and solidarity. These changes will take effect from 1 January 2024. The main changes concern the abolition of the city tax on all kinds of income paid by municipalities, previously between 0% and 18%, and the modification of the rates applicable to income tax. Other innovations also include an increase in the basic personal allowance and threshold for applying the increased rate of income tax, and a reduction in the base for the first tier of pension insurance in respect of certain gross salaries. Individuals with gross salaries up to a specific level will receive considerable tax relief.

The income tax rate for individuals in Croatia in 2022 was 30%, while the social insurance rate in 2024 was 36.5%. These rates have shown evidence of a general trend toward a lower tax burden and higher social benefits with a view toward improving working and living conditions in the country.

Croatia Tax Administration

Social tax in Norway 2024

For 2024, Norway generally applied 22% tax to ordinary income, progressive bracket tax of up to 17.6% to personal income, and separate National Insurance contributions. There was no single general personal income-tax rate of 38.2%. The components must be assessed using their respective bases and thresholds.

The Norwegian Tax Administration

Social tax in Cyprus 2024

In Cyprus in 2024, social insurance, health care contributions (GESY), and income tax play a key role in payroll taxation for both employees and employers.

Distribution of social tax between employee and employer
In Cyprus in 2024, employees and employers each contributed 8.8% of insurable earnings to the Social Insurance Fund, subject to the applicable contribution ceiling. The state contributed a further 5.2%. GESY contributions were assessed separately.

GESY (health care system): He/She contributes to the GESY system by 2.65% of his/her basic salary.

Income tax: It is paid on a progressive scale starting from income above 19,500 euros. An example of a rate is 20% for income between €19,501 and €28,000, and then on an ascending scale.

% of social tax on wages paid

For illustration, assume a monthly gross salary of €2,500 (€30,000 over twelve months). This is an example salary, not a universal minimum for all third-country nationals; statutory minimum-wage and immigration-permit salary conditions must be assessed separately for the worker’s category.

• Social insurance: EUR 220 per month (8.8% of EUR 2,500).
• GESY: 66.25 euros per month
• Income tax: For twelve monthly gross salary payments of €2,500 and no other income, allowances or deductions, monthly employee social insurance is €220 and GESY is €66.25. Annual taxable income is €26,565, giving annual income tax of €1,413, or €117.75 per month.

Thus, the monthly net salary in this 2024 example is €2,096.

For a €2,500 monthly gross salary in 2024, the employer’s Social Insurance Fund contribution is €220 at 8.8%. Adding €30 for the Redundancy Fund, €12.50 for the Human Resource Development Fund, €50 for the Social Cohesion Fund and €72.50 for GESY gives employer costs of €2,885. This excludes any additional holiday-fund liability or other applicable costs.

Benefits for foreign workers

Cyprus provides for benefits for employees who were foreign residents before the commencement of employment on the island, including tax deductions of 50% and 20% upon certain conditions.

This scheme encompasses Cyprus as one of the most attractive countries to work and reside in, taking into consideration the facilitation of opportunities regarding tax optimisation and the access to a number of incentives available for resident individuals and legal entities.

Cyprus Tax Department

Social tax in Poland 2024

In 2024, the tax system of Poland envisages several heads of tax both for natural persons and legal entities, including social contributions and income tax.

Social contributions

For standard employment in Poland in 2024, the employee’s social insurance contributions comprised pension insurance of 9.76%, disability insurance of 1.50% and sickness insurance of 2.45% of the applicable base. Health insurance was a separate 9% contribution, generally calculated on gross remuneration less the employee-funded social insurance contributions. GESY is the Cypriot health system and does not apply in Poland.

Income tax

In Poland in 2024, the general personal income tax scale was 12% up to PLN 120,000 of annual taxable income, less a tax-reducing amount of PLN 3,600. Above PLN 120,000, the tax was PLN 10,800 plus 32% of the excess. This corresponds to a PLN 30,000 tax-free allowance for income taxed under the general scale.
Polish net salary must be calculated using the applicable Polish social and health insurance contributions, income tax rules, allowances and payroll deductions. A calculation based on Cyprus’s GESY contributions and euro-denominated tax bands cannot be used for Polish employment.

Taxes for employers

Polish employers contributed 9.76% for pension insurance, 6.50% for disability insurance and a risk-dependent accident insurance contribution. Contributions to the Labour Fund and Solidarity Fund and to the Guaranteed Employee Benefits Fund also applied where required. Cyprus’s Social Cohesion Fund, Industrial Training Fund and GESY contributions do not apply to Polish payroll.

Tax benefits

It provides a number of tax incentives and subsidies to investors and entrepreneurs, such as reduced tax rates for SMEs and areas with special tax conditions.

Poland National Revenue Administration

Social tax in Czech Republic 2024

For 2024, the Czech standard corporate income-tax rate was 21%. VAT rates were 21% and 12%, while qualifying books were exempt with the right to deduct input VAT. Payroll liabilities must be calculated separately using the relevant employee and employer assessment bases; adding headline income-tax and contribution rates does not establish a company’s overall tax burden.

In 2024, ordinary Czech social-security contributions were 7.1% for employees and 24.8% for employers, excluding health insurance. Personal income tax used rates of 15% and 23%, with 23% applying only above the statutory threshold. These taxes and insurance contributions must not be described as one social-insurance rate.

However, this overall tax burden of companies and individual entrepreneurs may be considerably reduced by a number of tax incentives and double tax treaties. The Czech Republic has signed over 80 such agreements, which underlines its commitment to creating a favourable tax climate for both local and foreign businesses.

Financial Administration of the Czech Republic

Social tax in Portugal 2024

For ordinary employees in Portugal, the standard combined social-security rate is 34.75% of the contribution base: 23.75% is borne by the employer and 11% by the employee. Reduced rates or exemptions can apply to specific categories. Income tax must be calculated separately.

It is relevant to notice that the system in Portugal involves deducting all kinds of taxes and contributions from the agreed amount and calculates the “in hand” salary of the employee. This means that within salary computation, it will include the consideration of taxes and social contributions, which are deductible in order to arrive at the net amount that shall be received by the employee. This is a system that requires exact planning and calculation by the employer to ensure the process is according to the expectations of employees and legislations.

Generally speaking, the tax system in Portugal is an elaborate arrangement; apart from income taxes and social contributions, it also includes several local levies and charges, such as value added tax (IVA), environmental taxes, and municipal tourist taxes.

Portuguese Tax Authority

Social tax in Denmark 2024

For a monthly paid employee working at least 117 hours per month under Denmark’s standard ATP A-rate in 2024, the employee contribution was DKK 99 and the employer contribution DKK 198 per month: DKK 1,188 and DKK 2,376 respectively over twelve months. Different working-time bands and payment frequencies use different contribution amounts.

The Danish Tax Agency

Social tax in Romania 2024

In Romania in 2024, the amount of social tax and its distribution between the employee and the employer is as follows:

The employer’s ordinary 2.25% payroll charge is the employment insurance contribution, contribuția asiguratorie pentru muncă (CAM). It must not be described solely as work-accident insurance. Employee social-insurance and health-insurance deductions are separate liabilities.

Health care tax of 10% – fully paid by the employee.

Pension insurance contributions account for 25% of salary, also payable by the employee. The employer does not pay any direct pension contributions.

The employer’s ordinary 2.25% payroll charge is the employment insurance contribution, contribuția asiguratorie pentru muncă (CAM). It must not be described solely as work-accident insurance. Employee social-insurance and health-insurance deductions are separate liabilities.

Additionally, Romania operates a flat income tax of 10% both for residents and non-residents and thus represents one of the most straightforward tax systems in Europe.

This social tax structure funds a large number of social programs: pensions, health care, unemployment and accidents at work.

Fiscal Administration of Romania

Social tax in Estonia 2024

For the year 2024 in Estonia, the following shall be the amount of social tax and its distribution between employee and employer:

• Social tax is 33% of the taxable amount of the income derived from labour activity and from entrepreneurship. This tax is used to finance pension insurance and public health care. All social tax shall be paid by the employer;
• In Estonia in 2024, the minimum monthly social tax calculation base was EUR 725, producing a minimum monthly social tax liability of EUR 239.25 where the minimum obligation applied.
• Rates of the unemployment contribution are staying at the same level as last year: 1.6% for employees and 0.8% for employers.

Unsocial tax is to be paid:

• By employers based on income paid to employees;
• The individual entrepreneurs on the basis of their entrepreneurial income;
• By the state, municipalities or cities, in certain cases.

Social tax in Estonia is an obligatory constituent of the social security system destined to finance pension and health care services for the population. The amount and a mechanism for its calculation are defined by the legislation and include a compulsory payment from employers for their employees, as well as from individual entrepreneurs for themselves.

Estonian Tax and Customs Board

Social tax in Finland 2024

In Finland, the social insurance premium is shared by both the employer and employee. The headings include health insurance, pension insurance, and unemployment insurance. This is an obligatory payment and its purpose is to provide financing for the widespread social security system in Finland.

Employers’ social security contributions:
The Finnish employer’s health insurance contribution in 2024 was 1.16% of the applicable wage base.

Contributions to employer’s pension insurance varies according to the employer. The average percentage in 2022 was 17.39 per cent. It is an important part of the Finnish pension system that keeps the pension available for the employees.

In 2024, the Finnish employer’s unemployment insurance contribution was 0.27% of annual payroll up to EUR 2,337,000 and 1.09% on the portion above that threshold.

Group statutory employment accident insurance, group life insurance account for an average 0.57 percent and 0.06 percent of payroll, respectively, covering occupational accidents and illness, and life insurance benefits.

Stronger social security contributions to employees:

• Retirement insurance contributions as high as 7.15% for most employees, and 8.65% for employees falling in the age bracket between 53 to 62 years, ensure employees accrue pension rights by the time they actually retire.
• In Finland in 2024, the employee medical care contribution was 0.51% of the relevant municipal-tax income base. The daily allowance contribution was 1.01% of the applicable earnings base when annual wage and self-employment income reached EUR 16,499; below that threshold, employees did not pay the daily allowance contribution.
• The Finnish employee’s unemployment insurance contribution in 2024 was 0.79% of the applicable wage base.

Social security contributions in Finland create a solid safety net both for employees and employers, when the insurance covers various aspects of social security like health, pensions and unemployment.

Finnish Tax Administration

Social tax in Macedonia 2024

For 2024, North Macedonia generally applied a 10% personal income-tax rate under the rules effective from 1 January 2023. Gambling winnings were subject to 15%. The earlier temporary suspension of progressive taxation in 2020–2022 is historical and should not be used to describe the 2024 regime.

Public Revenue Office of the Republic of North Macedonia

Social tax in Serbia 2024

In Serbia in 2024, the social taxation system includes social insurance contributions payable both by employees and employers. Such contributions provide financing for pension and disability insurance, health insurance and unemployment insurance.

Employee Contributions:
Pension and disability insurance contributions: 14% of gross salary.

Health insurance: 5.15%

Unemployment insurance: 0.75%

Thus, the total amount paid by the employee from gross remuneration for social insurance accounts for 19.90%.

Employer Contributions:

• The rate of pension and disability insurance contributions is 10% of the gross salary of the employee.
• Health insurance is 5.15%. Thus, the overall cost for the employer consists of 15.15% of the employee’s gross remuneration, excluding fringe benefits in kind, such as food and holiday allowances.

Personal income tax:

• For 2024, Serbia’s ordinary salary tax was a flat 10% on the taxable salary base after the applicable monthly salary allowance of RSD 25,000. This allowance is distinct from social-contribution assessment rules and from the separate annual personal income tax.

Ordinary Serbian payroll contributions totalled 35.05% of the relevant contribution base in 2024: 19.90% borne by the employee and 15.15% by the employer. Minimum and maximum contribution bases and any specific relief must be applied separately.

Ministry of Finance of The Republic of Serbia

Social tax in France 2024

For 2024, the French monthly social-security ceiling was €3,864 (€46,368 annually). The employer’s uncapped basic old-age contribution rose from 1.90% to 2.02% from 1 January 2024. Total payroll contributions depend on remuneration, applicable ceilings, employer characteristics and available reductions; a single universal combined rate should not be quoted.

France Tax Authority

Social tax in Slovakia 2024

In Slovakia in 2024, the total social contributions paid by employees amount to 9.4% of remuneration, and the maximum contribution is EUR 796.83 per month. The insurance contribution to employee health will be 4% of remuneration without any ceiling. From the side of employers, the social insurance contribution is 24.4% with a maximum of EUR 2,068.36 per month. Moreover, the employers pay work accident insurance contributions at the rate of 0.8% of total unlimited wages of their employees. In Slovakia in 2024, the standard employer health insurance contribution was 11% of the assessment base, without a maximum ceiling. A reduced rate of 5.5% applied for employees with qualifying disabilities.

Financial Administration Slovak Republic

Social tax in Georgia 2024

The tax system of Georgia in the year 2024 was also based on the same backbone introduced earlier that aimed for simplicity and ease of doing business. An important feature of the tax policy in Georgia comes with the universal pension levy that came into force on 1 January 2019. The total level of the levy, 4-6% of income for each, is composed of 2% paid by him or her, 2% for salaried employees paid by the employer (or 4% in the case of self-employed persons having the right to waive the levy), and 0 to 2% based on state budget funding.

As for corporate and individual taxes, there is a 15% corporate income tax. However, special rates are applied in certain company categories; for example, companies with the status of an International Company are taxed at 5%, while companies with Virtual Zone entity status are taxed at a 0% rate. Income tax in Georgia is levied on the income of individuals at a flat rate of 20%. Currently, the VAT rate is 18%, and the excise tax is imposed based on the goods category.

Within these limits, the Georgian taxation system shows some adaptability and flexibility to the current economic situation, with the purpose of stimulating business development and investments. At the same time, the compulsory pension deduction underlines social responsibility for both employer and employee and is supported by the state.

Social tax in Slovenia 2024

In the year 2024, social tax in Slovenia is paid for the pension and disability insurance, compulsory health insurance, unemployment insurance and insurance against accidents at work and occupational diseases. The contribution is divided as follows:

• Pension and disability insurance: 15.50 per cent paid by the employee and 8.85 per cent paid by the employer.
• Compulsory health insurance: 6.36 per cent paid by the employee and 6.56 per cent paid by the employer.
• Unemployment insurance: 0.14 per cent paid by the employee and 0.06 per cent paid by the employer.
• To the account of insurance against accidents at work and occupational diseases, 0.53 per cent is payable by the employer alone.

In all, there are social contributions amounting to 16.1 percent of wages payable by the employer, with another 22.1 percent by the employee.

It has to be underlined that a general social insurance system prevails in Slovenia, offering old-age pensions, health insurance, unemployment insurance and any other type of social protection. All these social contributions are obligatory, deductible from employees’ wages and payable by employers to the competent State Funds.

Financial Administration of the Republic of Slovenia

Social tax in Germany 2024

In Germany, the social security system has contributions for health insurance, accident insurance, pension insurance, and unemployment insurance, where some rates are shared equally by both employer and employee. Overview based on information received:

Health Insurance

• Total 14.6% shared by employee and employer alike. Also, there is a special extra TK contribution of 1.2%, which is also to be divided between the employee and the employer. Hence, the total health insurance contribution rate is about 15.8%.
• In 2024, Germany’s standard statutory long-term care insurance rate was 3.4%. Childless members generally paid a further 0.6 percentage points from age 23, borne solely by the employee. Reductions applied for eligible parents with several children under 25, and the employer–employee split differed in Saxony. These are long-term care insurance contributions, not accident insurance contributions.

Pension Insurance

• Contributions into the pension insurance system are set at 18.6% of wages, equally shared by employees and employers.

Unemployment insurance

• Unemployment insurance is at the rate of 2.6%, contributed equally by employees and employers.

Impact of Increased Contributions Starting in 2024

In Germany in 2024, the annual contribution assessment ceiling for statutory health and long-term care insurance was EUR 62,100, equivalent to EUR 5,175 per month. Contributions were calculated on earnings up to that ceiling. Yet, that is not all: the rate of supplementary health insurance also went up and furthered the whole cost for people whose salaries surpass the limit threshold.

In 2024, the contribution assessment ceilings for Germany’s general pension and unemployment insurance were EUR 90,600 per year in western Germany and EUR 89,400 in eastern Germany. The unemployment insurance contribution rate was 2.6%, shared equally between employer and employee.

The Social contributions in Germany for 2024 are therefore important for both the employee and the employer as they affect net income and the cost of employment, respectively. Contributions are a source of financing for the social security system and give the right to benefits in health care, pensions, unemployment benefits, and long-term care.

Federal Central Tax Office

Social tax in Spain 2024

For 2024, Spain has changed some of the elements of the social security system, one of them being the intergenerational equity mechanism that provides for a contribution of 0.6% on the contribution base for general cases in all cases of registration or equivalent registration in the social security system, where there is an obligation to contribute for pension coverage. The indicated mechanism will be 0.70 percentage points for 2024, of which 0.58 corresponds to the company and 0.12 to the employee.

For Spain’s General Social Security Scheme in 2024, the maximum monthly contribution base was EUR 4,720.50. This is the earnings base to which the relevant contribution rates are applied; it is not the amount of social security contributions payable each month.

For ordinary temporary incapacity caused by common illness or a non-work accident, the statutory Spanish benefit was 60% of the regulatory base from days 4 to 20 inclusive and 75% from day 21. The first three days were generally not covered by this statutory benefit, although an applicable collective agreement could improve the entitlement. Common illness generally required 180 contribution days in the preceding five years; accidents did not require a minimum prior contribution period. Occupational contingencies and special statutory situations followed different rules.

The Spanish Tax Administration Agency

Social tax in Greece 2024

From 1 January 2024, Greece’s monthly ceiling for insurable earnings was €7,373.53, up from €7,126.94 in 2023. This is the earnings base ceiling, not the maximum contribution itself. Employee and employer contributions must be recalculated using their respective rates; the increase from €6,500 belongs to 2023.

From 1 January 2024, Greece’s monthly ceiling for insurable earnings was €7,373.53, up from €7,126.94 in 2023. This is the earnings base ceiling, not the maximum contribution itself. Employee and employer contributions must be recalculated using their respective rates; the increase from €6,500 belongs to 2023.

The new provisions under Greek law brought in by the Law 4997/2022 referred to social security, pensions, and labour law. Under this law, social security debts may be regulated and paid in instalments, from 2 to 24 equal monthly instalments, or up to 48 equal monthly instalments if they are audited debts. The incentives are also provided for conversion of the part-time contracts to full-time contracts, such as a state subsidy of social contributions for a period of one year from the date of conversion.

These amendments underline that it is very important to understand what the current structure of social contributions in Greece looks like, both for employees and employers, and what influence those changes might have on personal or corporate finances.

Independent Authority for Public Revenue (IAPR) of the Hellenic Republic

Social tax in Sweden 2024

In Sweden in 2024, employers pay social contributions of 31.42 per cent of total taxable wages (without a cap) in cash and in kind paid to Swedish employers or foreign employers with a permanent establishment in Sweden. Foreign employers without a permanent establishment in Sweden shall apply for registration of social contributions or may make an agreement with the employee that the latter pay and report the contributions themselves on a monthly basis. Depending on which of the said options is chosen, different rates apply.

For income year 2024, Sweden’s general pension contribution was 7% of the applicable earned-income base, capped at SEK 43,000 after statutory rounding. A tax reduction equal to the contribution was available, subject to the amount of tax against which the reduction could be applied.

In 2024, the standard Swedish employer contribution rate was 31.42% of gross salary and taxable benefits, subject to category-specific exceptions. Employees did not generally pay a separate 14% social contribution. Their general pension contribution and the corresponding tax reduction must be assessed separately; a combined 45.42% rate is therefore incorrect.

These figures reflect the comprehensive approach of Sweden to social protection, encompassing an extensive range of benefits and services such as healthcare, unemployment benefits, family allowances, and pensions.

National Tax Board of Sweden (Skatteverket)

Social tax in Hungary 2024

In 2024, social contributions will be one of the main parts of the tax and labour obligations of employers and employees in Hungary. The basis for social contributions is the gross income of the employee. The employers’ contribution rate-the so-called “social tax”-is 13 per cent, while the employees’ social contribution rate is 18.5 per cent. The child tax credit can be applied, which decreases the social contribution liability by 15% of the unused amount of the child tax base out of the total social contribution liability of 18.5%:

As of 2024, the minimum wage is HUF 266,800 per month, and the guaranteed minimum wage for persons employed in jobs requiring at least secondary vocational or professional education is HUF 326,000 per month starting from 1 January 2024. The employers of Hungary shall pay all the social contributions and file the social security declaration electronically every month. For foreign employers who have no local representation, similar obligations exist, but on failing, the obligation shifts onto the employees.

Social benefits serve to reduce the cost of employing given groups of employees, including the unemployed, mothers with three or more young children, persons with disabilities, researchers, etc. In the case of employment of employees mentioned above, the employer may apply social benefits. The periods of eligibility of benefits and their exact amounts depend on the employee.

For standard insured employment in Hungary in 2024, employees paid a single social security contribution of 18.5% of the applicable base. Employers generally paid social contribution tax at 13%, subject to available reliefs. The separate vocational training contribution had been abolished from 1 January 2022. Employee social security contributions did not reduce the personal income tax base.
This information shows that social contributions and taxes system is not an easy one in Hungary, and it is to be considered seriously both by local and foreign employers as well as employees.

Hungary National Tax and Customs Administration

Social tax in Iceland 2024

For 2024 in Iceland, individual taxation is based on a progressive state income tax rate in addition to municipal tax. The tax rates are set for personal income as follows:

• The tax for income up to ISK 409,986 per month is 31.45% (16.78% state tax + 14.67% municipal tax)
• The tax for income exceeding 409,986 ISK and up to 1,151,012 ISK per month is 37.95% (23.28% state tax + 14.67% municipal tax)
• Income exceeding 1,151,012 ISK per month: 46.25% – of which 31.85% is state tax and 14.67% is municipal tax.

Municipal tax is withheld at source at a rate of 14.67%, but the final assessment can vary between 12.44% and 14.76%, according to each municipality’s decision.

Social taxes: From the viewpoint of social taxes, in Iceland, the employers’ social tax rate in 2024 amounts to 6.35 per cent, being among the lowest in Europe and putting Iceland in a fairly favorable position for employers with respect to the total labor cost.

Therefore, the distribution of tax obligations in Iceland between employee and employer is such that income and municipal taxes are withheld from the employee’s compensation, while the employer is responsible for social contributions amounting to 6.35%. The preceding is just one example of how progressive income taxation, combined with a relatively low employer social contribution rate, meets Iceland’s general policy of having social support with an attractive business environment.

Iceland Revenue and Customs

Social tax in Switzerland 2024

In Switzerland, in 2024, the extent of social contributions, as well as their split between employee and employer, varies according to the type of insurance. Key aspects follow:

Old age, death and disability insurance AHV/IV/EO: employees and employers both pay 5.3 percent of wages each without limit.

Unemployment insurance: the same rate is applied to employees and employers alike, at 1.1 percent each up to a maximum income of CHF 148,200.

Family Compensation Fund: employers pay between 1% and 3%; no contributions are deducted from the employee’s account.

Occupational accident insurance: employers pay contributions of between 0.17% and 3%, according to the risk category for a specific activity, on earnings up to 148,200 francs.

Accident insurance for accidents outside working hours: employees pay 1% to 4% on an income of 148,200 francs.

Occupational pension and health insurance are individually decided based on the scheme and cover, respectively.

Employers shall deduct the employee’s share from his or her gross wages and withhold and remit total contributions. For the self-employed, usually both the employer’s and the employee’s share are payable, although different contribution rates may apply.

The total social contribution percentage in Switzerland ranges from 8.17% to 23.5%. In fact, the rate will depend upon the type of insurance and an individual’s income. Note that at least 10.6% of the income in Switzerland goes as mandatory social contribution, half of which is paid by the employee—that is, 5.3%—and the remaining half by the employer.

That system includes social protection, old-age and disability pensions, unemployment insurance as well as health care coverage. Note that health insurance is compulsory in Switzerland, although it is financed separately from the social contributions (with an average monthly premium of more than CHF 334 in 2024).

Federal tax administration

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Social tax in Ireland 2024

Social taxation system in Ireland in 2024 comprises of the social security contributions (PRSI) and Universal Social Tax (USC).

Social security contributions (PRSI)

Labour income – based on labour relationship, including also the taxable non-monetary fringe benefits. PRSI rates applicable in 2024 for the employee and for the employer are different:

For Class A employees above the relevant earnings thresholds in Ireland, the standard employee PRSI rate was 4% until 30 September 2024 and 4.1% from 1 October 2024. The higher employer rate increased from 11.05% to 11.15% on the same date. Lower earnings could attract reduced employer rates, employee exemptions or a PRSI credit.

Class S applies to self-employed contributors, including certain company directors, subject to the applicable eligibility rules. For 2024 income reported through self-assessment, the blended PRSI rate was 4.025%, subject to a minimum annual contribution of €537.50. The rate increased from 4% to 4.1% on 1 October 2024. Class S has no separate employer contribution; a director’s classification must be assessed individually.

Class S applies to self-employed contributors, including certain company directors, subject to the applicable eligibility rules. For 2024 income reported through self-assessment, the blended PRSI rate was 4.025%, subject to a minimum annual contribution of €537.50. The rate increased from 4% to 4.1% on 1 October 2024. Class S has no separate employer contribution; a director’s classification must be assessed individually.

Universal social tax (USC)

USC is charged on the totality of an individual’s income, prior to the making of any pension deductions. For the year 2024, the USC rates of are as shown below:
The standard USC bands for 2024 were: 0.5% on the first EUR 12,012; 2% on the next EUR 13,748, up to EUR 25,760; 4% on the next EUR 44,284, up to EUR 70,044; and 8% on the balance. Exemptions and reduced rates applied where the statutory conditions were met.
A 3% USC surcharge applies to the portion of non-PAYE income exceeding €100,000, bringing the rate on that portion to 11%. Separately, the reduced USC rates for 2024 were 0.5% on the first €12,012 and 2% on the balance for individuals whose total income did not exceed €60,000 and who were aged 70 or over or held a full medical card. A GP visit card does not qualify.

For Class A employment, Irish employer PRSI rates were 8.8% or 11.05% until 30 September 2024 and 8.9% or 11.15% from 1 October 2024, depending on the employee’s weekly earnings.

These rates therefore also reflect Ireland’s general approach to social security-a financing of programmes such as pensions, unemployment benefits and health insurance.

Irish Tax and Customs departments

Social tax in Turkey 2024

The social insurance system in Turkey determines the rate of contributions by both employers and employees. Social insurance contributions and unemployment insurance are charged. All social contributions shared totally between employee and employer.

Social Contributions

• For employer: The general rate is 20.5 percent, which may be decreased to 15.5 percent under some conditions.
• For employee: It is calculated as 14% of the salary.

For the full period from 1 January to 31 December 2024, the monthly minimum social-security contribution base was TRY 20,002.50 and the monthly maximum was TRY 150,018.90. There was no separate July 2024 increase to TRY 13,414.50; that figure relates to the second half of 2023.

Unemployment insurance

Unemployment insurance premiums are shared by:

Employee: 1 percent

Employer: 2%

State: 1 percent

For the full period from 1 January to 31 December 2024, the monthly minimum social-security contribution base was TRY 20,002.50 and the monthly maximum was TRY 150,018.90. There was no separate July 2024 increase to TRY 13,414.50; that figure relates to the second half of 2023.

Changes in 2024

For the full period from 1 January to 31 December 2024, the monthly minimum social-security contribution base was TRY 20,002.50 and the monthly maximum was TRY 150,018.90. There was no separate July 2024 increase to TRY 13,414.50; that figure relates to the second half of 2023.

These changes form part of the overall wage and social insurance parameters, reflecting continued efforts to adapt the social security system to the present economic conditions in the country. It involves changes in obligations regarding social contributions by employees and employers, as well as unemployment insurance, to protect and provide support for people who will lose their jobs.

Social tax in Italy 2024

The amount of social contributions in Italy in 2024, and also their redistribution for the employee and employer side, depend on the type of employment and occupation specificity. The main accents sound like this:

For employers:

• Contributions paid by employers for social security: from 29.40% to 41.00% of an employee’s gross salary. Pension contributions, disability and survivors insurance, sickness leave, maternity, paternity and parental leave, and insurance against accidents at work (INAIL) are occupation-specific.

For employees:

• Employees’ contribution: 10% of the employee’s salary. Apart from social security, it covers:

For 2024, the annual threshold for Italy’s additional 1% employee pension contribution was €55,008, corresponding to €4,584 per month for monthly payroll assessment. Apply the additional contribution above that threshold in the relevant pension scheme, alongside the ordinary contribution rate and any applicable ceiling.

The self-employed who do not have a VAT number and who are not covered by a compulsory private pension fund are obliged to enroll in a special social insurance system with the INPS. The percentage of the contribution varies, and can range, according to their working conditions, from a minimum of 24% up to a maximum of 35.03%.

Flat tax for the self-employed: A flat tax regime has been designed – Regime forfettario- with the determination, in a lump sum way, of the taxable income at a rate of 15%, with exclusion of VAT, IRAP and ISA, and with no withholding tax at source. To use this regime, certain requisites and limits are provided for.

• The standard VAT rate is 22% for Italy, effective 1st October 2013. Reduced rates: VAT applies on specifically listed supplies of goods and services at lower rates, such as 4% on the supply of specifically listed food, beverages, and agricultural products, while 10% applies to supplies of electricity for listed purposes, among others, and listed medicines.

These data show the system of social insurance in Italy for all categories of employees and self-employed. It includes compulsory and supplementary contributions which will give an extended range of social guarantees, such as pensions, health insurance, and insurance in case of accidents at work.

For employers, social security contributions form a large percentage of total labor costs, amounting as high as 29.40-41.00% on gross wages of an employee, while the employees pay 10% of wages to social security.

There are also contribution rates and requirements for executives and self-employed persons; these relate not only to compulsory pension contributions payable to INPS but also to supplementary contributions payable to the funds granting additional pension and health insurance.

For 2024, the annual contribution ceiling for INPS Gestione Separata was €119,650. The applicable rate depends on the contributor’s category, other compulsory pension coverage and pensioner status. Registration is not determined solely by whether the person holds a VAT number.

Then, the new flat tax regime introduced the Regime forfettario that, for the specific categories of self-employed workers, allows application of the simplified tax system at a flat rate of 15%, VAT, and IRAP exclusion, making it very appealing for small and medium-sized enterprises.

These features make the Italian social security system complex and multilevel, with a broad scale of social guarantees provided by compulsory and voluntary contributions paid by employers, employees and the self-employed alike.

Ministry of Economy and Finance of Italy

Social tax in UK 2024

Contributions to Social Security in the UK are called National Insurance contributions. Both the employee and employer pay into it, covering many social support and benefits programs.

For standard UK Class 1 National Insurance in 2024, the main employee rate between the Primary Threshold and Upper Earnings Limit was 12% until 5 January, 10% from 6 January to 5 April, and 8% from 6 April. The employee rate above the Upper Earnings Limit was 2%. The standard employer rate above the Secondary Threshold was 13.8% throughout 2024. Specific categories and reliefs could alter the amount payable.

Generally speaking, NICs pay for various social support programs, including the state pension, the National Health Service, and other social programs.

HM Revenue & Customs

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