Social security contributions are all compulsory payments to general government that confer an entitlement to receive a future social benefit.
Such payments are usually earmarked to finance social benefits and are often paid to institutions of governments as a whole (all government levels) that provide such benefits.
Contributions for the following types of social security benefits would, inter alia, be included: unemployment insurance benefits and supplements, accident, injury and sickness benefits, old-age, disability and survivors’ pensions, family allowances, reimbursements for medical and hospital expenses or provision of hospital or medical services. Contributions may be levied on both employees and employers.
This indicator is measured as a percentage of GDP and as a percentage of total taxation.
