Salary vs Dividend Optimiser
For owner-directors: the split of salary and dividend that leaves the most cash in your hands
Profit before your salary and the employer contributions on it.
Optimal split
Salary
€0.00
Dividend
€85,000.00
Net to you
€78,497.50
Total tax and contributions across company and personal: €21,502.50 (21.5% of profit).
| Line | All dividend | Optimal | Max salary |
|---|---|---|---|
| Salary | €0.00 | €0.00 | €88,120.50 |
| Employer contributions | €0.00 | €0.00 | €11,879.50 |
| Corporate tax (15%) | €15,000.00 | €15,000.00 | €0.00 |
| Dividend paid | €85,000.00 | €85,000.00 | €0.00 |
| Personal income tax | €0.00 | €0.00 | €19,142.17 |
| Employee SI + GESY | €0.00 | €0.00 | €8,398.75 |
| SDC + GHS on dividend | €6,502.50 | €6,502.50 | €0.00 |
| Net to owner | €78,497.50 | €78,497.50 | €60,579.58 |
| Total tax rate | 21.5% | 21.5% | 39.4% |
Net cash across every split
Why the answer comes out where it does
Each route has a fixed cost per euro. Salary escapes the 15% corporate tax and its first €22,000 is free of income tax, but every euro carries 11.45% in employee contributions and 15.4% in employer contributions — around 26.85% before any income tax. Dividends carry no contributions at all: they pay 15% corporate tax and then SDC at 5% plus GHS at 2.65% — about 21.5% all in.
Because contributions on salary cost more than the corporate-plus-dividend route here, the optimum is to take no salary at all. Note the practical caveats below — a director usually needs some salary for contribution purposes even when the arithmetic says otherwise.
The “max salary” column is €88,120.50, not the full €100,000.00 — employer contributions are paid on top of salary, so the company cannot put every euro of profit into pay. Modelled on 2026 figures; ignores minimum contribution rules for directors, deemed dividend distribution, and anything specific to your company. A director usually needs some salary even where the arithmetic favours none. Confirm with your advisor before acting.