# Social Security Contributions - Self Employed



## GJHanley (Mar 14, 2011)

Hi there,

Hopefully somebody out there is either self employed or an accountant. I am really struggling to understand social security contributions for the self employed.

It looks to me as though there is a choice depending on what benefits you want, i.e. compulsory at approx 25.4% or extended at 32%. But 25.4% or 32% of what? Surely this can't be of your earned income.

I am moving to the Algarve at Easter and my job will be set up as self employed under "contract for services". Basically I will be looking after clients for a company, no outlay for equipment etc with a basic "draw" per month. 

So lets say I earn 60,000 euros spread evenly throught the year, which is 5,000 euros per month, gross, are they saying it will be 25.4% or 32% of that each month, on top of personal income tax


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## omostra06 (Sep 11, 2007)

If your going selfemployed on the green receipt system, iam pretty sure that you dont pay any social security contributions for the first year.


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