Employee insurance contributions

Employee insurance insures employees against loss of income due to unemployment, disability or illness. The contributions to be paid by the employee for this purpose are withheld by the employer and remitted to the tax authorities. If you are not an employee for employee insurance purposes, no contributions have to be paid and you are therefore not compulsorily insured.<

If you receive a management fee as a shareholder-director, under circumstances there is no employee status for employee insurance purposes. If you participate less than half in a certain company through your holding company and perform work for that company as a director, that company may have to pay income tax on the management fee.

In many cases, by amending articles of association and/or certification of shares, it is possible to avoid having to withhold employee insurance contributions on management fees.

For more information on management fees and employee insurance contributions, please contact us. We will be happy to advise you.