There are several scenarios in which it may be appropriate to update your social security contributions. Here are some common situations:
1️⃣ Income increase: If you expect a significant increase in your income from three years ago, it may be wise to increase your contributions to avoid a large additional payment afterwards.
2️⃣ Income decrease: If you expect lower sales due to circumstances such as an economic crisis, illness or bankruptcy, you may want to reduce your contributions to protect your liquidity.
3️⃣ Starting self-employment: New starters pay a flat-rate minimum contribution. If you expect a higher income, you can optimise your contributions immediately.
By being alert to changes in your financial situation, you can proactively adjust your contributions and avoid unnecessary costs.
Optimise your social security contributions in the event of a change in your articles of association
Besides your financial situation, other changes in your professional status can also affect your social security contributions. Here are some common scenarios:
- From student to self-employed student: View our article on calculating social security contributions for self-employed students.
- From self-employed student to secondary occupation: As a self-employed student, you enjoy an exemption from social security contributions up to the amount of €8,204.60 (2024). While as a secondary occupation, you are exempted only up to €1,865.45 (2024). Be sure to take this into account when you stop studying!
- From employee to secondary occupation: View our article on calculations of social security contributions for secondary occupations
- From secondary occupation to main occupation: If you convert your secondary occupation as a self-employed person to your main occupation, you will no longer be able to benefit from the exemption and you will have to pay social security contributions anyway. Be sure to view our article on calculating social security contributions for main occupation.
- From main occupation to self-employed in secondary occupation: In the opposite case, if you switch from main occupation to self-employed in secondary occupation, your social security contributions will also edit again.
Regardless of the specific situation, it is important to inform your social insurance fund of changes in your statute. They can then guide you in optimising your contributions to your new situation.
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