Social contributions Social contributions represent an important part of labour costs, above 25% in the majority of European countries. Employers' contributions are higher than those of employees, though workers dedicate more than 10% of their wages to compulsory social protection. The respective contribution of employers, employees and governments to social protection funding varies widely by country. Social security contributions are compulsory social security contributions paid by employees and employers to general government or to social security funds. Did you know? | • In EU 25, social protection is funded by employers (on average 38.5% of contributions), general government contributions (37%), and protected persons (21%). | • Between 2000 and 2004, EU 25 social contributions from employers grew 12%, and from protected persons by 9%. Contributions from general governments rose 22%. | | indicators Employers' and employees' share of social security contributions Employee's social security contributions in % of gross earnings |