Glossary:Social contributions

From Statistics Explained

Social contributions are paid on a compulsory or voluntary basis by employers, employees and self- and non-employed persons.

There are two types of social contributions, actual and imputed, paid by the employer for the benefit of their employees:

  • actual social contributions or actual payments consist of payments made by employers for the benefit of their employees to insurers (social security funds and private funded schemes). These payments cover statutory, conventional, contractual and voluntary contributions in respect of insurance against social risks or needs;
  • employers’ imputed social contributions represent the counterpart to unfunded social benefits paid directly by employers to their employees or former employees and other eligible persons without involving an insurance enterprise or autonomous pension fund, and without creating a special fund or segregated reserve for the purpose.

Statistical data