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Special contribution

As from 1 January 2012 each employee, self-employed, or person operating in the private sector receiving a pension, which are derived in the Republic is levied to a  special contribution on gross emoluments.

The special contribution in the private section is a percentage imposed on the gross earnings as shown below:

  • for the period 1 January 2014 to 31 December 2016

Gross monthly
salary

Special contribution rate

Cumulative
special contribution

%

Up to 1.500

0

0

1.501 - 2.500

2.5

25 (minimum €10)

2.501 - 3.500

3.0

30

3.500 and above

3.5

 

  • for the period 1 January 2012 to 31 December 2013

Gross monthly salary

Special contribution rate

Cumulative special contribution

%

Up to 2.500

0

0

2.501 - to 3.500

2.5

25 (minimum €10)

3.501 -  to 4.500

3.0

30

4.501 and above

3.5

 

Notes

  • Special contribution is deductible for income tax purposes.
  • In the case of an employee, the contribution is shared equally between the employee and the employer.
  • There is no upper limit on the amount of emoluments. However, certain types of emoluments are not included in the above calculations.
  • Special contribution on gross emoluments in the public sector is imposed as from 1 September 2011.

As from 1 January 2017, special contribution has been abolished.

The above should be used as a source of general information only. It is not intended to give a definitive statement of the Law and is subject to the Disclaimer.

For further details on these issues, please do not hesitate to contact us.