Table 1: Brackets for wage tax/national insurance contributions 2018
Grade |
Annual wages |
Payroll taxes contribution |
|
---|---|---|---|
Up to state pension age |
State pension age and older, born in 1946 or later |
||
1 |
up to and including € 20,142 |
36.55% |
18.65% |
2 |
€ 20,143 - € 33,994 |
40.85% |
22.95% |
3 |
€ 33,995 - € 68,507 |
40.85% |
40.85% |
4 |
€ 68,508 or more |
51.95% |
51.95% |
For employees of the state pension age and older - born in 1945 or before - the following grades apply:
Grade |
Annual wages |
Payroll taxes contribution |
---|---|---|
State pension age and older, born in 1945 or earlier |
||
1 |
up to and including € 20,142 |
18.65% |
2 |
€ 20,143 - € 34,404 |
22.95% |
3 |
€ 34,405 - € 68,507 |
40.85% |
4 |
€ 68,508 or more |
51.95% |
The rate in the 3rd and 4th grade is fully composed of wage tax. The rate of the 1st and 2nd grade is composed as follows:
Grade |
Type of contribution |
Up to state pension age |
State pension age and older |
---|---|---|---|
1 |
Old Age Pensions Act contribution |
17.90% |
Not applicable |
Surviving Dependants Act contribution |
0.10% | 0.10% | |
Exceptional Medical Expenses Act contribution |
9.65% | 9.65% | |
Wage tax |
8.90% | 8.90% | |
total | 36.55% | 18.65% | |
2 |
Old Age Pensions Act contribution |
17.90% |
Not applicable |
Surviving Dependants Act contribution |
0.10% | 0.10% | |
Exceptional Medical Expenses Act contribution |
9.65% | 9.65% | |
Wage tax |
13.20% | 13.20% | |
total | 40.85% | 22.95% |