Social Security Contributions

Mandatory Registration

The social security contributions are the employer's and employee's contributions that make up a total contribution rate of 10% on the contribution base, of which 4% is paid by employees and 6% is paid by employers.

The contribution base includes:

basic pay (gross monthly salary);
salary for the 13th month (annual subsidy);
increases to pay based on performance appraisals;
supplements paid for night work, shift work or remote work;
supplements for special careers; other supplements linked to the activity;
compensation for unfair dismissal.

The contribution base does not include:

subsistence subsidies (transport, board, lodging or other sums paid for travelling to another place of work);
overtime;
bonuses, gratuities or profit-sharing granted by the employer;
food subsidies, other extraordinary allowances granted by the employer;
representation expenses.

What is the employee's (gross) remuneration?

The worker receives the national minimum wage of $115, without other supplements

What is your contribution base?

$115

What is the employer's contribution?

6% x $115 = $6,9/month

What is the worker's contribution?

4% x $115 = $4,6/month

What is the total amount of social security contributions made by the employer to the social security?

$6,9 + $4,6 = $11,5/month

How much does the worker receive after social security contributions (net monthly salary)?

$115 - $4,6 = $110,4/month

What is the employee's (gross) remuneration?

The worker receives a salary of $550, without other supplements.

What is your contribution base?

$550

What is the employer's contribution?

6% x $550 = $33/month

What is the worker's contribution?

4% x $550 = $22/month

What is the total amount of social security contributions made by the employer to the social security?

$33 + $22 = $55/month

What is the total tax paid by the employee (withheld by the employer, who gives it to the Tax Authority)?

$550-$500 = $50/month $50x10%= $5

How much does the worker receive after social security contributions and taxes (net monthly salary)?

$550- $22 (Social Security) - $5 (Tax) = $523/month

What is the employee's (gross) remuneration?

The worker receives a national minimum wage of $115 + Monthly night labour supplement of $15 + $5 monthly food allowance
In other words, you receive a total remuneration of $135

What is your contribution base?

$115+$15=$130 (*)

Note: (*) The monthly food allowance is not included in the contribution base. See definition of the contribution base.

What is the employer's contribution?

6% x $130 = $7,8/month

What is the worker's contribution?

4% x $130 = $5,2/month

What is the total amount of social security contributions made by the employer to the social security?

$7,8 + $5,2 =$13/month

How much does the worker receive after social security contributions (net monthly earnings)?

$115+$15 +$5 - $5,2= $129,8/month

What is the employee's (gross) remuneration?

The worker receives a salary of $600 + Supplement per shift regime $20 + Housing allowance of $10

In other words, he receives a total remuneration of $630

What is your contribution base?

$600+$20=$620 (*)

Note: (*) Accommodation allowances are not included in the contribution base. See definition of the contribution base

What is the employer's contribution?

6% x $620 = $37,2/month

What is the worker's contribution?

4% x $620 = $24,8/month

What is the total amount of social security contributions made by the employer to the social security?

$7,8 + $5,2 =$13/month

What is the total tax paid by the employee (withheld by the employer, who gives it to the Tax Authority)?

$630 - $500 = $130/mês;$130 x 10% = $13/month

Quanto recebe o trabalhador depois dos descontos para a segurança social (salário líquido mensal)?

$600 +$20 +$10 - $24,8 (Social Security) - $13 (Tax) = $592,2/month

Optional Registration

The worker who is optionally registered in the contributory social security regime pays the contribution rate of 10% of the contribution base, and may choose one of 20 contribution bands.

In the case of workers aged 50 or over, the minimum contribution base is the amount corresponding to the 5th Contribution Band (minimum Contribution Band ).

Employees can always reduce the Contribution Band they initially chose. However, if they are aged 50 or over, they can never reduce the Contribution Band below the minimum Contribution Band (5th Contribution Band ).

Workers can increase the band they initially chose, but can only do so to the next higher band (e.g. from band 6 to band 7) and provided they have at least 12 consecutive months of paid social security contributions.

The contribution base corresponds to a conventional remuneration, chosen by the worker, according to the following Contribution Bands, indexed to the amount of the Social Pension (SP):

Band	Contribution base
1^st	2xSP
2^nd	2,5xSP
3^rd	3xSP
4^th	4xSP
5^th	5XSP*
6^th	6xSP
7^th	7xSP
8^th	8xSP
9^th	9xSP
10^th	10xSP
11^th	15xSP
12^th	20xSP
13^th	30xSP
14^th	40xSP
15^th	55xSP
16^th	70xSP
17^th	95xSP
18^th	125xSP
19^th	160xSP
20^th	200xSP

* Minimum contribution base limit for worker aged 50 and over.