Social security contributions are amounts paid by employers and employees to Social Security Funds (SSFs). They are an integral part of a person’s salary which is withheld by employers and paid to SSFs on behalf of the employees.
Contributions are calculated as a percentage of gross earnings and are distinguished in employer and employee contributions.
Employee contributions are deducted from gross earnings and the remaining amount is a person’s “net” earnings. Furthermore, taxes are deducted from a person’s “net” earnings and the remaining amount is the amount that is deposited in the employees’ bank accounts.
Employer contributions is money belonging to the employees but are called employer contributions because they are paid by employers.
Employer contributions are not deducted from the gross salary (as employee contributions are) but are part of employers’ expenditure for work provided along with gross employee earnings. And since this is money that belongs to the employees, it is paid by the employer to the SSFs on behalf the employees.
As of 1.1.2020, contributions of professionals, non salaried and self-employed persons are no longer linked to declared income. Instead, they are determined according to insurance categories which insured persons can choose freely and independently for each insurance branch, on an annual basis.