Employer contribution and Employee's share denote the division of Sozialversicherungsbeiträgen between employer and employee. The Employee contribution is generally withheld from the contributory Remuneration, whilst the employer pays their share in addition.
What do Employer contribution and Employee contribution mean?
For employment subject to social security contributions, contributions are paid to Social security collected. Depending on the insurance branch, these contributions are split between employer and employee.
The Employer contribution denotes the share of contributions paid by the employer. The Employee contribution represents the proportion allocated to the employee and taken into account when processing the Arbeitsentgelt.
What is the difference between employer and Employee contribution?
The essential difference lies in who economically bears the respective contribution share.
- Employer contribution: is paid by the employer in addition to Remuneration.
- Employee contribution: is taken into account when billing the Arbeitsentgelt and influences the employee's payout amount.
The exact breakdown depends on the respective branch of Social security and the regulations applicable to it.
Connection to the Payroll
Employers and Arbeitnehmeranteil are in the framework of the Payroll taken into account. The basis for the contribution assessment is in particular the relevant Sozialversicherung salary or gross social security salary.
The Employee contribution is one of the deductions that makes the difference between gross and Net wage have a say. The Employer contribution, on the other hand, is additionally paid by the employer.
