The social security tax rate for employers is an important element of the total employment costs. In Europe, the rates differ per country. What are the social security tax rates for employers in Europe? In this blog, we will give a clear overview of the social security tax rates in 2023 for employers in Europe. What is the most expensive European country to hire employees as a North American SME?
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.
In the table below you can find the employer security tax rate per European country in 2023. To have a more detailed overview per region please click here.
| 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.
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. Thinking about hiring in Europe or do you want to learn more about the costs and wages? We would like to invite you to read our blogs and articles on the total Cost of hiring European employees or the average annual wages in Europe for additional insights.
In case you would like to know more about employment opportunities in Europe, please do not hesitate to contact us. We would love to schedule an introductory call on the opportunities for your business in Europe.
About EuroDev
EuroDev, established in 1996 with offices in The Netherlands, has a single, defined purpose to help mid-sized North American companies expand their business in Europe. We have created a proven, successful business development model and since our founding, have partnered with over 500 companies to help them define and meet their European business goals. Services provided include Sales Outsourcing, HR Outsourcing, and Digital Marketing.
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.
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