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TSU – What is the Single Social Tax

The Single Social Tax, or TSU, is the amount that companies and employees pay every month to Social Security.

Applied rates

The rates are divided into two parts and are applied over the gross salary of the employee, being: 23.75% attributable to the company and 11% attributable to the worker.

As an example, let us suppose that a certain individual earns a monthly income of 1000 Euros gross. Based on this amount, the employer has the responsibility to pay 237.50€ and the employee has the responsibility to pay 110,00€. However, although the 11% is payable by the employee, it is the employer who has to pay the amount to the State.

TSU payment deadline

The TSU payment deadline is from the 10th to the 20th of the month following that in which the remuneration is due. This means that, regarding the salary earned in August, the deadline for the payment of TSU is until the 20th of September.

Exemptions

There is the possibility to request the exemption of the payment of TSU, through the fulfilment of certain conditions, namely the celebration of work contracts, with or without term with:

  • Long-term unemployed (people who at the date of the contract are 45 years old or older and have been registered for 25 months or more at the employment centre);
  • Inmates in open regime;
  • Workers who are already at the company’s service through a fixed-term employment contract.

Besides these conditions, the company must cumulatively comply with the following requirements;

  • It must be properly constituted and registered;
  • Its contributory situation must be regularised;
  • There should be no delays in the payment of remunerations;
  • Having, in the month in which the application is made, a higher number of workers than the average number of workers registered in the twelve months immediately before.

However, this exemption has a maximum duration of 36 months and its request must be made through Social Security Direct, within 10 days after the conclusion of the employment contract.

If you wish to obtain more information, please contact us.