Depending on the status under which you exercise your activity, you will have to pay social contributions. The conditions are different depending on the country, even in Europe…
Calculation of social security contributions
Contributions based on income
- NET Professional income of the reference year
The contributions, to which you are indebted, primarily represent a percentage of your earned income. This percentage varies according to the category of assessment and of income of the contributor. Indeed, you may exercise your profession either full time or as a complementary activity; you may also be retired or not.
For assisting spouses, there is a special regulation.
Revenues that serve as base for the calculation of contributions are collected net from the revenues in the third calendar year preceding the year for which contributions are due (the reference year). Example: Your contributions 2014 are calculated on your income in 2011. There is a minimum and a maximum amount.
Moreover, your professional income of 3 years ago is indexed. They are multiplied by a coefficient, which is determined by a royal decree at the beginning of each calendar year.
Your social insurance fund calculates the social contribution on your indexed. reference earnings
- Cost of management
In addition to legal amounts, you will pay an amount to cover the costs of management. It is a claim that every social insurance fund may wear into account to manage its members. Management fees are a percentage of the contributions. Often, it comes to 4.20% of the amount of the contribution.
In January 2015, this reglementation is due to change
If you are in « Company »
You will pay your dues is :
- As an independent, liberal profession
- As an employee of the company