Keeping social security contributions for the self-employed legally low

Social security contributions are particularly burdensome for commercial agents

Self-employed commercial agents who only work for one client have to pay social security contributions in the statutory pension insurance. On the one hand, they work as entrepreneurs, on the other hand, they cannot freely choose which form of pension insurance they prefer.

• The possibility of exemption exists, however, if the commercial agent employs an employee who is subject to social security contributions.
• At this point, he no longer has to pay social security contributions based on his income to the statutory pension insurance, but only the contribution that is based on Mini job-Wage of the employee measured.
• Other self-employed, such as craftsmen or
  instagram viewer
  freelancer, are usually compulsorily insured. The master craftsman must prove a number of compulsory contributions to the pension insurance before he can apply for an exemption.
• Freelancers are usually insured through a professional pension fund.


Pension ceiling - explanation of terms

The pension ceiling, correct contribution ceiling to the statutory ...

The self-employed can specifically reduce non-wage labor costs

• If you work part-time or full-time as a self-employed worker, you must be aware of the employer's share in addition to the statutory one social insurance pay.
• You can legally reduce this part of the social security contributions for the self-employed and for employees.
• Contributions to a company pension are free of social security contributions up to four percent of the annual contribution assessment limit to the statutory pension insurance. In addition, it also saves your employee income tax.
• The contributions for a direct insurance or pension fund are deducted from the gross. Both of you benefit from this solution. The ideal solution for the self-employed to reduce non-wage labor costs.