Social Security & Taxes

Every member state is free to decide who is to be insured under its legislation, the conditions and benefits granted, as well as methods of benefit calculations.

Social security contributions include:

  • Health/sickness benefits
  • Maternity and paternity (parental) benefits
  • Invalidity benefits
  • Old-age (pension) benefits
  • Survivors’ benefits
  • Benefits on work accidents and occupational diseases
  • Death grants
  • Unemployment benefits
  • Pre-retirement benefits
  • Family benefits

The social security package also includes the health insurance fund affordable at your annual income. You can choose the social security package suitable for you. The payment for the health insurance is deducted from your salary by your employer who pays directly to the appropriate companies.

When you no longer reside in the member state you have worked in, you are entitled to the same pension as the citizens of the member state in question.

Taxes

All employees within the EU member states who possess work permits are prone to taxes. Tax rates vary based on annual income and between member states. Rate percentages in the European Union vary from 7% to almost 60% for higher annual income. The tax rate is shared by the employer and the employee.

Tax deductions encompass social security contributions which are further explained below.

There is coordination between Member States on Social Security by agreements between companies on how the rate is paid and implemented.  This coordination has been established in order to not create better conditions for workers within the EU.

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