Table 1: Graded tax system payroll taxes 2016

From January 1 to March 31, 2016

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 € 19,922 36.55% 18.65%
2 € 19,923 - € 33,715 40.20% 22.30%
3 € 33,716 - € 66,421 40.20% 40.20%
4 € 66,422 or more 52.00% 52.00%

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 € 0 - € 19,922 18.65%
2 € 19,923 - € 34,027 22.30%
3 € 34,028 - € 66,421 40.20%
4 € 56,422 or more 52.00%

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 0.60% 0.60%
Exceptional Medical Expenses Act contribution 9.65% 9.65%
Wage tax 8.40% 8.40%
total 36.55% 18.65%
2 Old Age Pensions Act contribution 17.90% Not applicable
Surviving Dependants Act contribution 0.60% 0.60%
Exceptional Medical Expenses Act contribution 9.65% 9.65%
Wage tax 12.05% 12.05%
total 40.20% 22.30%

From April 1 to December 31, 2016

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 € 19,922 36.55% 18.65%
2 € 19,923 - € 33,715 40.40% 22.50%
3 € 33,716 - € 66,421 40.40% 40.40%
4 € 66,422 or more 52.00% 52.00%

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 € 0 - € 19,922 18.65%
2 € 19,923 - € 34,027 22.50%
3 € 34,028 - € 66,421 40.40%
4 € 56,422 or more 52.00%

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 0.60% 0.60%
Exceptional Medical Expenses Act contribution 9.65% 9.65%
Wage tax 8.40% 8.40%
total 36.55% 18.65%
2 Old Age Pensions Act contribution 17.90% Not applicable
Surviving Dependants Act contribution 0.60% 0.60%
Exceptional Medical Expenses Act contribution 9.65% 9.65%
Wage tax 12.25% 12.25%
total 40.40% 22.50%

 

 

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