Paying Contributions – Employer

The employer pays contributions:

• 1.4 % of the assessment basis for sickness insurance.
• 14 % of the assessment basis for old age insurance for an employee who is not an old age pension saver, and for an employee who is an old age pension saver and who is not receiving an old age pension or early old age pension under Pillar 2, 10 % of the assessment basis and 4 % of the assessment basis for old age pension savings.
• 3 % of the assessment basis for invalidity insurance.
• 0.8 % of the assessment basis for accident insurance (if they are compulsorily insured for accidents).
• 0.25 % of the assessment basis for guarantee insurance (if they are compulsorily insured under guarantee insurance).
• 0.5 % of the assessment basis to fund support.
• to unemployment insurance:
  • 0.5 % of the assessment basis if it pays contributions to fund support.
  • 1 % of the assessment basis if contributions are not paid to fund support.
• 4.75 % of the assessment basis into the solidarity reserve fund.

IMPORTANT INFORMATION:

The employer pays contributions to finance support in the event of ‘short-time work’, for employees in an employment relationship and in a legal relationship on the basis of a contract for the professional performance of sport. This new contribution is referred to as the support funding contribution (SFC).

The employer does not pay invalidity insurance contributions for an employee who is pension insured following the granting of an old age pension or early old age pension. The employer also does not pay invalidity insurance contributions for an employee who is pension insured, is a beneficiary of a service pension and has reached pensionable age.

The employer does not pay unemployment insurance contributions for an employee who was awarded an old age pension, an early old age pension or an invalidity pension due to a reduction in earning capacity by more than 70 %. Nor does the employer pay contributions for an employee who has been awarded an invalidity pension and has reached pensionable age. Unemployment insurance contributions are not paid by the employer for a judge and prosecutor, for an accused employee serving remand or for a convicted employee serving a term of imprisonment.

For the purposes of paying contributions to disability and unemployment insurance, the legal effects of

• pensionable age begin on the date determined by the Social Insurance Agency as the date pensionable age was reached, at the earliest on the date on which it was determined;
• awarding a pension begin on the date of issuing the decision awarding the pension.

The employer pays contributions for the employee to the Social Insurance Agency at the following amount (% of the assessment basis):

• sickness insurance: 1.4 %,
• old age insurance: 4 %,
• invalidity insurance: 3 %,
• unemployment insurance: 1 %,
• SSI – Special social insurance – municipal police officers – 3 %.

Making information about an employee’s pension available for the purposes of payment exemption for social insurance contributions

Since 1 June 2022, the Social Insurance Agency has made information about employees available to employers in electronic form, without the employees’ consent, necessary for determining periods during which an employee is not obliged to pay contributions for sickness, pension and unemployment insurance due to the awarding an old age pension, early old age pension or invalidity pension, including the day on which the decision awarding the pension is issued. The Social Insurance Agency makes this information automatically available to the employer in the Social Insurance Agency’s electronic services system.

More information you can find here: Premium payment tables.