Going self-employed?
An informed choice.
So you want to start up your own business. Securex outlines all the relevant consequences of this decision for you.
The status of employee and self-employed differ in many ways. One important difference concerns social security.
As an employee your employer takes your social security contributions out of your salary. When you are self-employed you are responsible for taking the necessary mandatory initiatives yourself.
As an employee – white or blue collar – your social status is largely taken care of on your behalf. Your employer is obliged to register with the various different Social Security institutions: the National Office for Social Security, a Child Benefit Fund, a Holiday Fund (only for blue-collar workers) and an Occupational Accident Insurer.
The only thing you need to do as an employee is register with a health insurance fund of your choice. Every month, the employer takes the personal social security contributions (13.7% of your gross salary) from your salary and deposits it with the National Office for Social Security (NOSS). In addition, your employer himself also pays employer social security contributions on your salary (approximately 35%).
Self-employed persons have to register with a Social Security Fund and pay quarterly social security contributions.
Difference in benefits and/or allowances
Due to the difference in the contributions between the two statuses, there is also a difference in benefits and/or allowances. This includes benefits and allowances like sickness and invalidity, pension, …
In order to accommodate these discrepancies, there are many alternatives that you as a self-employed person can opt for with private institutions such as the Free Supplementary Pension for Self-Employed, the Guaranteed Income, the Individual Pension Commitment if you are a self-employed business owner, ... Payments into these systems are also tax deductible.
Good advice? Go along to the Securex Company Desk. There they will draw up a comparison of the two statuses for you thus helping you on your way to being self-employed.
