social

COMPARISON OF TAX AND SOCIAL LEVIES IN SEVERAL EU COUNTRIES

A summary table of tax and social levies from several European countries and the resulting efficiency between the cost of wages for the employer and the net (fiscal and social) collected by the employee.

 

Bulgaria is particularly successful in this European comparison and is on the top spot on the podium thanks on the one hand to capped social levies (at 420Eur per month) and on the other hand a low tax rate (10%).

 

Luxembourg is in second place in the ranking thanks in particular to its low social levy rates (total employer contributions of 13%).

Romania is not very well placed because of its high social levy rates and its flat income tax of 16%, which is not competitive on an average salary of EUR 3,000/month.

 

France is poorly ranked because of the very heavy burden of social contributions (and in particular the employer share of social contributions).     

 

 

 BULGARIAROUMANIA
BaseCapRatesContributionBaseCapRasesContribution
GROSS SALARY3000   3000   
PAYROLL TAXES (WAGE SHARE)  
RETIREMENT CONTRIBUTION 153310,58162 260010,5273
HEALTH CONTRIBUTION 15333,249  5,5165
OTHER CONTRIBUTIONS  0   0,515
SOCIAL CHARGES (EMPLOYER SHARES)  
RETIREMENT CONTRIBUTION 153313,72210 260020,8540,8
HEALTH CONTRIBUTION 15334,873  5,5165
OTHER CONTRIBUTIONS 15330,46  1,545
TAX2788 102782562 16410
NET SALARY   2.509   2.152
COST EMPLOYER   3.290   3750
   Efficiency76,28%  Efficiency57,38%

 

 

 LUXEMBOURGFRANCE
 BaseCapRateContributionBaseCapRateContribution
GROSS SALARY3000   3000   
PAYROLL TAXES (WAGE SHARE)  
RETIREMENT CONTRIBUTION  8240  11330
HEALTH CONTRIBUTION  4120  0,721
OTHER CONTRIBUTIONS  0,515  10,4312
SOCIAL CHARGES (EMPLOYER SHARE)  
RETIREMENT CONTRIBUTION  8240  16480
HEALTH CONTRIBUTION  4120  12,8384
OTHER CONTRIBUTIONS  130  7,2216
TAX2560 102562562 9189
NET SALARY   2639   2148
COST EMPLOYER   3390   4080
   Efficiency69,88%  Efficiency52,64%

         

 

                            

Update: 2019 for Bulgarian data and 2017 for data from other countries.