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Social Security

What is Social Security Contributions?

Social security contributions eat up about 20% of your gross salary – but in return, you are covered for illness, unemployment and old age. On a €4,000 gross salary, that is around €800 per month.

Social security contributions are the second-largest deduction from your salary after wage tax. On a gross salary of €4,000, around €800 (20%) is deducted, and your employer pays almost the same amount on top. In return, you get a safety net for life's biggest risks.

What are you paying for, exactly? Of your €800, around €372 goes into pension insurance (9.3%), €290 into health insurance (7.3% plus additional contribution), €68 into long-term care insurance (1.7-2.3%) and €52 into unemployment insurance (1.3%). Accident insurance is paid entirely by your employer.

Practical benefit: these contributions aren't wasted money! If you get sick, you receive sick pay (70% of your gross salary); if you become unemployed, unemployment benefit (60-67% of your net salary); and in old age, you receive a pension. Your family is also covered under your health insurance if they have no income of their own. Over 40 years at an average income, you build up pension entitlements of around €1,600 per month.

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Use our free gross-net calculator to work out your net salary – with current 2026 tax values.

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