The social security tax rate for employers is an important element of the total employment costs. In Europe, the rates differ per country. As a North American SME considering hiring overseas, you might be interested in how they differ from country to country and how they impact your business.
In this blog, we will give a clear overview of the social security tax rates in 2023 for employers in Europe.
Understanding Social Security Tax Rates in Europe
As you may know, employment costs include more than just wages. The employer social security tax rate is an important element in the total employment costs.
On average, the social security tax rate for employers in Europe in 2023 is around 20%. This is a lot higher than North American employers are used to. In the table below, you can find the employer social security tax rate per European country in 2023.
| Country |
SST Rate 2023 |
Population (2023) Old Values |
| France |
29.50% – 31.30% |
64,756,584 |
| Slovakia |
35.20% |
|
| Belarus |
34.00% |
9,498,238 |
| Czech Republic (Czechia) |
33.80% |
10,492,495 |
| Estonia |
33.80% |
1,322,765 |
| Sweden |
31.42% |
10,612,086 |
| Italy |
29.40% – 32.40% |
58,870,762 |
| Russia |
30.02% – 38.50% |
144,444,359 |
| Spain |
29.90% |
47,519,628 |
| Monaco |
28.00% – 40.00% |
36,297 |
| Belgium |
25.00% |
11,686,140 |
| Moldova |
22.50% – 36.50% |
3,435,931 |
| Portugal |
26.50% |
10,247,605 |
| Latvia |
20.77% – 23.59% |
1,830,211 |
| Netherlands |
16.55% – 21.55% |
17,618,299 |
| Greece |
23.33% – 24.74% |
10,341,277 |
| Poland |
19.48% – 22.14% |
41,026,067 |
| Ukraine |
22.00% |
36,744,634 |
| Austria |
21.08% |
8,958,960 |
| Finland |
27.69% – 29.24% |
5,545,475 |
| Germany |
20.645% |
83,294,633 |
| Bulgaria |
18.92% – 19.62 |
6,687,717 |
| Hungary |
13.00% |
10,156,239 |
| Serbia |
16.65% |
7,149,077 |
| Croatia |
16.50% |
4,008,617 |
| Slovenia |
16.10% |
2,119,675 |
| Luxembourg |
12.22% – 15.30% |
654,768 |
| Albania |
16.70% |
2,832,439 |
| Norway |
14.10% |
5,474,360 |
| United Kingdom |
15.05% – 18.05% |
67,736,802 |
| Ireland |
8.80% – 11.05% |
5,056,935 |
| Bosnia and Herzegovina |
10.50% |
3,210,847 |
| Malta |
10.00% |
535,064 |
| Montenegro |
8.30% |
626,485 |
| Canada |
7.91% – 13.57% |
38,781,291 |
| United States |
8.27% – 24.85% |
339,996,563 |
| Denmark |
13.721% |
5,910,913 |
| Switzerland |
8.17% – 23.50% |
8,796,669 |
| Iceland |
6.10% |
375,318 |
| Romania |
6.25% |
19,892,812 |
| Lithuania |
1.77% |
2,718,352 |
*Tax rates are checked regularly in 2023. However, please confirm tax rates with the country's tax authority before using them to make business decisions.
Extra insight: Social Security Tax Rates in Europe – Detailed 2021 Overview
Impact of Social Security Tax Rates on the Employment Costs for North American SMEs
Higher tax rates in Europe contributing to overall employment costs can influence the decision-making process when hiring internationally. Not only the social security depends on the region or country in Europe, but it requires North American small and medium-sized companies' new strategies to navigate this complex landscape.
Navigating Social Security Tax Rates in Europe
When seeking opportunities for international hiring, North American SMEs need to be informed of the cost, wages, and social security tax rates in Europe. However, North American employers may find it challenging to align hiring initiatives with periods of lower tax liabilities to identify opportunities for cost savings. Thus, effectively managing employment costs to mitigate the impact of various tax rates in Europe may require assistance.
And that's where we step in. Explore our HR Outsourcing services to find out more.
Bonus read:
Cost of Hiring European Employees
Average Annual Wages in Europe
Disclaimer: While we strive to provide accurate and timely information, please note that HR policies and regulations can change frequently. It is recommended that you seek guidance from our HR consultants to ensure that the data presented here is current and accurate.
Sources: KPMG, WorldOMeter
