Taxes in Europe Database v2
The Statutory Notice No 961 of 25th September 2008 no longer applies as the labour market contribution is now regarded as a PIT. Please find the new labour market contribution under personal income taxes. Statutory Notice No 471 of 6th December 2009 is in effect as of 2011.
Wage and salary‑earners, self‑employed persons and employers.
The gross earning for wage and salary‑earners and profits for self‑employed persons. Transfers such as social pensions, unemployment benefits etc. are not subject to this tax.
The contribution is calculated on the basis of wages and salaries, etc. Therefore, no contribution is payable on the basis of following income:
-grants from the State Education Fund;
-sickness and unemployment benefits;
-certain kinds of pensions and life assurance schemes;
-public service pensions;
-certain kinds of social benefits and other transfer income;
-national retirements pensions;
-interest, dividends and other capital income.
There is no deduction in the contributions, but the contribution is deducted before personal income tax is assessed.
In 2010 the tax is 8 % for wage and salary‑earners and self‑employed persons.
From 1999 a special contribution of 1 % of the same basis of assessment is paid by wage and salary earners and self employed persons to the Supplementary Pension Fond. However, since 2004 this special contribution has been suspended.
The contribution is withheld by the employer and the pension institutes.
The tax is essentially a gross labour income tax.