Social security contribution

economic-dictionary

The Social Security contribution is the fee that both employees and employers must pay to the State as a contribution.

The Social Security contribution will usually correspond to a monthly fraction or percentage of a worker's salary. This being entered in the form of withholding in the Social Security system of the country in question. Said withholding must be correctly recorded in each payroll that is delivered to the employee.

It is also known as the contribution to the total amount that the sum of active workers must contribute to the State in contributions to Social Security. The sum of the Social Security contributions of all workers in a country is one of the most important sources of financing for a State.

Example of a Social Security contribution

In Spain, for example, it is organized by the Contribution Account Code.

An eleven-digit number is assigned to workers at the beginning of their working life and will serve to identify them throughout their professional career. However, in terms of financing, it must be clarified that the financing of medical assistance is not covered by the Social Security accounts.

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