Social Security Tax Rates in Europe: Employer Guide 2023

Last updated: 23 August 2023

 

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%
5,466,813
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 

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