French Social security contributions

Please note that the information herein is of a general nature and you should not act or refrain from acting on it without professional advice on the specific facts of your case. No liability is accepted by the author or Sykes Anderson Perry Limited in respect of this article. Social security law is a complex subject and the above is a basic outline only and is intended only as a general guide. Nothing herein constitutes financial advice.

In France, the employer and employee have to pay social security contributions. They are calculated on the gross salary paid to the employees and break down into two parts:

1. Payroll charges

The average amount of the payroll charges paid by the company is 28 % of the net salary.

For example, for a net salary of 1.000€, the payroll charges represent 280€. The gross salary necessary for the payment of a net salary of 1.000€ is 1.280€.

2. Employer’s contribution

The amount of the employers' contribution is 54% of the net salary.

For a net salary of 1.000€, the employer’s contributions represent 540€. The gross salary necessary for the payment of a net salary of 1.000€ is 1.540€.

The total of the employee and employer contributions are equal to 82% of the net salary.

So, if a company pays a net salary of 1000€ to an employee, it has to pay on average 820€ of social security contributions.

February 2018
David Anderson
Solicitor-Advocate and Chartered Tax Adviser
Sykes Anderson Perry Limited