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A mother working reduced hours to care for a child with a serious illness has asked which social security contribution amount should be used as the limit for her maternity tax relief. The Directorate General for Taxes (DGT) has ruled that contributions increased up to 100% of the amount that would have been due without the reduction must be calculated.
Question posed: Limit of Social Security contributions applicable to the maternity deduction.
For the limit of the maternity deduction, contributions and quotas shall be computed based on their full amounts, without considering any subsidies. The contributed amount is understood as the sum of the amounts contributed on behalf of the worker and the employer. In cases of reduction in working hours, the contributions increased up to 100% of the amount that would have corresponded if the working hours had been maintained without reduction shall be taken into account.
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