Social security contributions

Social security contributions are all the sums paid by employers and workers to the national Social Security system that give the right to obtain future social benefits, with conditions.

They’re paid by employers, employees, and the self-employed.

In reality, there are two types of social security contributions:

• Employee social security contributions, which are deducted directly from the employee's gross salary income.
• Employer social security contributions, which are paid by company owners and are generally higher than employee social security contributions. These are paid by employers to collecting bodies.

Depending on the country, the tax rates that employers and workers must pay for social security contributions will vary. In addition, what these taxes are used for will differ as well.

In general, however, social security contributions are mainly used to finance social benefits provided by health insurance.

They’re also used to finance pensions after retirement, unemployment insurance, family allowances, compensation for accidents at work or occupational illness, housing allowances, and minimum social benefits.