As from 1 January 2024, the Social Insurance
Contribution rates for each of the employer and the employee are increased by
0,5% and for self-employed individuals by 1%.
The earnings cap for Social Insurance purposes
for 2024 will increase to €62,868 per
annum (2023: €60,060 per annum).
It is reminded that the
contributions an employer is required to make on the gross emoluments of its
employees are as follows:
· Social Insurance Fund 8.8%
· Redundancy Fund 1.2%
· Industrial Training Fund 0.5%
· Social Cohesion Fund 2%
· Holiday Fund (if not exempt *) 8%
* An employer can be granted an exemption when paid annual holidays are offered and upon certain conditions being met.
Besides the Social Cohesion
Fund for which contributions are uncapped, for the rest of the funds the
contributions are capped as per the above mentioned threshold.
Employees are required to
contribute only to the Social Insurance Fund at the same rate as with the
employers and subject to the same earnings cap.
Contributions to the various
employment-related funds are tax-deductible, and the employer’s contribution is
not taxable for the employee.
