Introduction

When an employee receives their salary, it is generally subject to deductions: taxes and Social Security Contribution. To define how much taxes and contribution should be deducted, there are two fields of the employee's profile in Indigo which needs to be accurately set up: Tax Profile (for taxes) and Employment Type (for Social Security Contribution)

In this article, we’ll take a closer look at what these fields actually represent, how they work, and how the combination of Tax Profile and Employment Type shapes the employee’s overall taxation and SSC deduction scenario.

Employment Type

The Employment Type tells Indigo how SSC should be calculated by identifying the employee’s working‑time arrangement: Full Time, Reduced Fixed Hours, or Hourly. It defines the work modality, not the actual hours to be worked; those needs to be specified in the Work Schedule profile instead. When combined, these two fields allow Indigo to apply the correct social security rules for every scenario, even when different employees work different patterns of hours under the same employment type.

Full Time: the employee regularly works 40 hours a week. SSC is deducted and matched by the employer according to the category.
Reduced Fixed Hours: the employee works a fixed amount of hours which is less than 40 hours a week. SSC is deducted based on the reduced weekly wage and matched by the employer according to the category.
Hourly: the employee works a variable amount of hours a week. SSC changes with the hours worked, as weekly earnings fluctuate. Categories are still applicable.

⚠️ Important

No SSC should be deducted if:

The employee is 65 or older
The employee works with you as their second job. More on this 👉 here.

In such cases, you would select the value without social security ⬇️

➡️ Set up Employment Types ⬅️

Tax Profile

Every person can have more than one job and the MTCA (former CFR) needs to classify each job they have so that the correct tax rate can be applied. That's what Tax Profiles do. There are generally two classification: Main and Part-time.

Main

This refers to the employee’s main source of income, which is subject to both taxation and SSC. Within the Main category, the MTCA further classifies employees based on their family situation, as this affects their tax rates:

Main Single
Main Married
Main Parent.

The last two have their own subcategories according to the number of children. More on this topic in this 👉 article.

Part-time

It always refers to a second job, meaning the employee already has a main job somewhere else. It is subject to taxation but not SSC. In this case:

You are not responsible for SSC deductions
Income is taxed at a flat 10% rate, up to €10,000 per year

⚠️ SSC only applies to Main tax profiles, meaning to the main source of income. Only the employer of a main job has to cover the SSC for the employee.

➡️ Set up Tax Profiles ⬅️

🧠 Full Time Vs Main: Wording Matters in Indigo

Sometimes the words Full Time and Main are used interchangeably, even though in Indigo they refer to two different concepts. This happens because:

A Full Time job (40 hours per week) is almost always the job the employee earns the most from.
Since higher earnings lead to higher SSC contributions—and therefore a better pension—employees generally choose their highest‑earning job as their Main job.
Because of this, the Full Time job naturally ends up being the Main job in most real‑world situations.

However, the reverse isn’t always true:

A Main job is not always Full Time; it can also be Reduced Fixed Hours or Hourly.
Ultimately, it’s up to the employee to decide which of their jobs should be considered their main source of income.

A quick visual representation below.

Employment Type ➡️ Tax Profile ⬇️	Full Time	Reduced Fixed Hours	Hourly
Main	✅	✅	✅
Part-time	❌	✅	✅

Combinations

Now let's focus of some common scenarios and the relevant Tax Profile and Employment Type combination.