Table 1: Graded tax system payroll taxes 2020

Grade

Annual wages

Payroll taxes contribution

Up to state pension age

State pension age and older, 
born in 1946 or later

1a

up to and including € 34,712

37.35%

19.45%

1b

€ 34,713 - € 68,507

37.35%

37.35%

2

€ 68,508 or more

39.50%

49.50%

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

1a

up to and including € 35,375

19.45%

1b

€ 35,376 - € 68,507

37.35%

2

€ 68,508 or more

49.50%

The rate in grades 1b and 2 is fully composed of wage tax. The combined rate of grade 1a is the same to 1b, but composed as follows:

Grade

Type of contribution

Up to state pension age

State pension age and older

1a

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

9.70% 9.70%
total 37.35% 19.45%

 


  

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