Since 2019 a hike in the Social Insurance Contributions has being which will reach the top of it’s peek in 2039. In 2019 the Social Insurance rate has been increased from 7.8% to 8.3% for the contribution by both the employee and the employer from the gross salary of the employee. The difference of 0.5% will be added to the rate every five years until it reaches 10.3% for each side (employee and employer).
In addition to the above, in March 2019 an additional contribution has been added to the Social Insurance, the so called GESY, ‘National Health Insurance System (NHIS)’. 1.7% was contributed from the employee and 1.85% was contributed from the employer from again the gross salary. The aforementioned rate will be increased in March 2020 as the National Health Insurance System will be in full implementation. The rate for the employee will be increased from 1.7% to 2.65% and for the employer from 1.85% to 2.9%.
The government contributes 1.65% for the NHIS and 4.7%, in 2019 and 2020, respectively. Whereas, the self-employed contribute 2.55% in 2019 and 4% in 2020.