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taxation.be

Saturday
Aug 24th
Home arrow Individuals arrow Social Security

Social Security for Self-employed

Within ninety days from starting his activity, a self employed worker must register with a social insurance fund and a mutual insurance organisation.

A social insurance fund (caisse de sécurité sociale / sociale verzekeringskas) is the organisation that collects  the social security contributions.  For a list of social insurance funds click here

A mutual insurance organisation (mutualité / ziekenfonds) takes care of the social security benefits (health insurance cover, …).  It may be confusing, but most mutual insurance organisations belong to the same group as a social insurance organisation (Partena, Securex, etc ...). Registering for both within the same group is not obligatory but it makes communication between the social insurance fund and the mutual insurance easier.

The contributions are calculated at the following rates :

If your income is between €0 and €54,398: 22% : the contribution will be between 0 and €11,968.
If it is between  €54,398 and € 80,166 : 14.16% : the contribution is between €11,968 and €15,616.
The contributions are capped at €16,616 per year, or €3,904 per quarter.

On top of these contributions, the social insurance fund collecting the social security  contributions charges a management fee. 

The contributions are calculated on the earnings (‘profiessional income’) on your tax return of three years ago. During the first three years, you pay provisional social security contributions, calculated on the basis of a minimum income or on the basis of the income you estimate you will earn. The minimum contribution is €692 per quarter.  If you have a main occupation as an employee (called ‘primary activity’ on the website), the contributions can be reduced.

You can make a simulation on the following website of the Ministry of Social Security.

Payments are to be made per quarter, i.e. before 31 March, 30 June, 30 September and 31 December of each year.

Also check the following brochure for more information about the social security benefits.

The social security is much less than the total social security paid on an employee’s salary, but a self employed is not entitled to the same national insurance cover: the family allowance is much less, there is no insurance for occupational diseases and no unemployment benefit, and the national retirement pension will be much less than that of an employee.

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