Glossary

What Is Social Security?

Compulsory contributions paid by employees and employers to fund public welfare programmes.

Definition

Social security (also called social insurance or national insurance) refers to mandatory contributions from employees and/or employers that fund state benefits such as pensions, unemployment insurance, healthcare, sick pay and maternity pay. Rates differ by country.

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Income

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Estimate gross salary, net pay, income tax, employee contributions, pension, health insurance and employer cost.

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Other glossary terms

Gross Salary

Your salary before taxes and deductions are removed.

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Net Salary

Your salary after all taxes and deductions are removed — the amount you actually receive.

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Income Tax

A tax paid on earned income, deducted from your salary or paid on profit.

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Pension Contribution

Money set aside from your salary into a pension fund for retirement.

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