Social Insurance Contributions and Deductions

From 1stof January 2014 the Social Insurance contributions and deductions are as follows:

Employees

  Categories

Holiday

Fund %

Social Insurance Fund%

Social Cohesion Fund %

Redundancy Fund%

Industrial Fund %

  Employer      Contributions

8-11%

7.8

1.2

0.5

2

  Employee    Deductions

7.8

 

Holiday fund percentage depends from the business of the company. Generally the office related business pay 8% holiday fund, the construction industry 9%, and the tourist related business 11%.

All calculations are based to the gross salary of the employees and the maximum salary on which social insurance contributions are calculated is €54,396 per year (€1046 per week for weekly employees and €4.533 per month for monthly employees)

The payments for the employee’s social insurance contributions are on monthly basis.

Self Employees

Social Insurance for self employees divided into occupation categories. For each occupation category there is determined minimum income on which Social Insurance contributions are calculated.  If the income of self employee is lower or higher than the determined category income then the self employee raise an objection and requests to pay according to his actual income.  In addition for the self employees also take affect the maximum income salary, which is €1046 per week.

The categories and the determined minimum income for each category for 2013 are as follows:

Occupation Category

Determined minimum income €

   Doctors, Pharmacist, Qualified in health substance professionals-  Exercising the profession for less than 10 years-Exercising the profession for more than 10 years

383.64

775.99

   Accountants, Financier, Layers and other free professionals-  Exercising the profession for less than 10 years-  Exercising the profession for more than 10 years

383.64

775.99

   Directors (Businessmen) Real estate agents, Whole sale dealers

775.99

  Teachers, Masters, Professors- Exercising the profession for less than 10 years- Exercising the profession for more than 10 years

374.92

749.83

  Builders and all individuals that exercise construction related professions

470.83

Farmers, stock farmers, poultry farmers, fishermen and all related professions

261.57

  Drivers, excavation manipulators, and all related professions 374.92
  Technicians, assistants technician, mass media collaborators, Machine  manipulators not related to construction industry, individuals that assemble product of metal, wood, plastic, rubber and related materials

374.92

 

   Clerks, typists, Cashiers, secretaries 374.92
   Technicians that are not belong to any other category 374.92
   Shop owners 357.48
   Butchers, Bakers, Confectioners, preparers of products from meat, milk, fruits, tobacco and all related professions 287.73
   Itinerant, Post office deliveries, garbage gathering workers, mine/quarry /stone products workers, Sailors, submarine production workers. Installers of lifting equipment and wire ropes. Street sweepers. Accountable for service allowance and salesmen.

261.57

   Cleaners, ushers, securities, Laundry owners 357.48
   Designers, Computer manipulators, Ship mechanics, Agents and related professions, Musicians, Magician 383.64
   Individuals that are not included to any other occupation category 383.64