Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
€10.03 per hour or €1,521.22 per month.
Salaries are paid on monthly basis for work between the first to last day of the month. Paydays are at the end of each month.
Full time employment is considered 35 hours weekly.
Employees must not work more then 48 hours weekly, 44 hours per week during 12 consecutive weeks, and 10 hours a day.
Employers contribute 47.45% of workers wages. The social security ceiling has been raised to 39,732 EUR annually (from 29,228 EUR), and 3,311 EUR monthly (from 3,269 EUR).
As of January 1st, 2019, the Agric and Arrco have merged into one plan.
- Bracket 1: for salaries up to the social security ceiling. Employer – 4.72% Employee – 3.15% CEG (Overall balance contribution) Employer – 1.29% Employee – 0.86%
- Bracket 2: for salary between 1 and 8 times the social security ceiling. Employer – 12.95% Employee – 8.64% CEG (Overall balance contribution) Employer – 1.62% Employee – 1.08%
Disability – Social Security pays 50% of the salary until a ceiling (slice A = 3311 € for 2018) for a max of 3 years. After this period, once the indemnity is no longer 100%, Novalis completes the salary (on top of the Social Security) to min 75% and max 90% of the salary. The percentage is dependent on the number of children, a work or non-work related accident or maternity leave. For long term disability (after 3 years), employees are paid by Social Security.
On top of this, Novalis pays a percentage of the salary. The payout percentage is dependent on the type of disability. In the event of death, beneficiaries receive a capital or a widowhood pension. This amount is calculated by the gross salary and different formulas that can be chosen (lump sum or lump sum + educational annuity).
The universal healthcare system covers all residents through social security contributions and taxes. The universal system covers about 70%-80% of medical cost with the remainder being paid by supplementary private health insurances. These private health insurances are either paid out-of-pocket, or if employed, by their employer.
Maternity leave is provided depending on the number of children.
- Single birth, bringing mothers number of children to one or two: 16 weeks (6 before birth, and 10 after)
- Single birth, bringing mothers number of children to three or more: 26 weeks (8 before birth, 18 after)
- Birth of twins: 34 weeks (12 weeks before, 22 weeks after) *
- Birth of triplets or more: 46 weeks (24 weeks before, 22 weeks after)
- If the mother suffers an illness during pregnancy, she is entitled to two additional weeks before birth, and four additional weeks after birth.
Male employees are entitled to three days leave on the birth or adoption of a child. They are also entitled to 11 consecutive days paternity leave (18 if there are multiple births or adoptions), which must be taken within the four months following birth or adoption.
Employees who have worked for at least one year before the date of their child’s birth, (or before welcoming a child no older than 16 years to their home with a view to adoption) can take parental leave or choose to work part-time. This right extends until the child’s third birthday, (unless the child was aged between three and 16 on arrival, in which case the adoptive parent can take one year’s parental leave from the date of arrival).
If employees take parental leave, their employment contract is suspended and the employer does not have to pay compensation. However, the employees can receive certain indemnities from the social security system.
Parents can also benefit from additional leave when their child is sick, which usually amounts to between three and five days depending on the child’s age and the parent’s number of children. However, if the child suffers from a serious illness or disability, or an accident, which requires continuous parental presence or constraining care, the parents can take a specific leave of 310 days over three years.
Resignation: No specific labor code. Can be submitted verbally or written, however, it is advised to provide a written notice. A fixed duration of notice does not exist, but notice should always be given. Notice period is determined on contract, agreement, or practices by profession.
Mutual Termination: Employers and employees agree on termination conditions in permanent employment contracts.
Economic Dismissal: These are jobs cut due to economical or technological changes.
Individual Dismissal: A preliminary dismissal interview must be set up and take place. 2 days to a month after the meeting a letter of dismissal must be sent to the employee
- 1 month for employment between 6 months and 2 years.
- 2 months for employment over 2 years
- 3 months for executives.
• Monthly average of last 12 months of employment
• Average monthly earnings of all months preceding dismissal
• One third of the last three months
20% standard rate.