The contributions are shared between employer and employee; on average the employer's share of contributions represents 45% of the gross salary. For 2022, the employee's share of French social contributions represents approximately 20% to 23% of the remuneration.
French Social Charges Rates: How Much Will You Pay on Your Pension? Pensions in France are subject to CSG (Contribution sociale généralisée) at a rate of 3.8%, 6.6% or 8.3% in 2022. If you receive a French pension, your pension income will be subject to one of these rates, depending on the amount of your pension.
France's Social Security ceiling (PASS) was finally confirmed on December 16th, 2022 and its value increased by 6.9% on January 1, 2023. As for 2023, the annual ceiling will reach €43,992, and the monthly ceiling will reach €3,666 (compared to €3,428 in 2022).
The Urssaf funds collect and distribute Social Security contributions and charges. They finance the reimbursement of medical care, medical leave, maternity, and industrial accident benefits, and fund basic pensions and family benefits for those covered by France's general Social Security scheme.
Social security (French: sécurité sociale) is divided by the French government into five branches: illness; old age/retirement; family; work accident; and occupational disease. From an institutional point of view, French social security is made up of diverse organismes.
There are two basic charges that are imposed, one for accommodation and one for social care. Medical care is provided without charge.
The monthly social security ceiling for 2023 : 3,666 €. This rate varies based on company size and risks.
A minimum pension for low salaries
The new reform provides for a minimum pension of 85% of the French minimum wage; it means that employees who have worked for 43 years will get a minimum of 1,200 euros a month of pension (based on today's minimum wage).
French President Emmanuel Macron has signed into law his government's highly unpopular pension reforms, which raise the state pension age from 62 to 64. It happened hours after France's top constitutional body cleared the change.
Pensions are not exempt from taxation in France, however, so you must declare them and pay taxes. You may be able to apply for tax relief for some state pensions in order to pay your taxes in France.
If you are of retirement age or an early retiree from within the EEA, and in receipt of a S1 health certificate of exemption, the social charges are not applied on any pension income received from outside of France.
Newcomers to France soon learn that income is subject to two forms of tax here – income tax and social charges. Non-residents may also have to pay this tax, for example if they rent out French property or make capital gains on the sale of local real estate.
Payroll tax
If employers are not subject to the value-added tax (VAT) or are subject to the VAT on less than 90% of total sales, they must remit payroll taxes on wages. Rates range from 4.25% to 13.60% based on each employee's income, although employers don't have to pay if the tax owed is less than €1,200 annually.
The French Allocation Personnalisée d'Autonomie (APA) mandatory state insurance “covers between 0 and 90% of the cost of a person's home care package with residential care paid for from their own contributions (often using private insurance).
Non-residents are taxed at a flat rate of 20% or 30% on investment/ rental income. If you earn up to €27.478, the rate is 20% (2022). Everything beyond this level is taxed at 30%.
You should apply for a long-term visa in your country from the French consulate and you will be granted a “carte de séjour visiteur”. You'll need to prove that you are financially able to live in France – a pension statement will suffice, bank statements showing savings etc.
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The maximum benefit is $3,627 for someone at full retirement age (FRA). The absolute maximum benefit that an individual can receive per month in 2023 is $4,555, and you must wait until age 70 to claim benefits and have been a high earner for 35 years to get this much.
An example of employee cost calculation
On average, employee social charges ('charges salariales) are around 22% of gross salary - so €770. This equates to a 'net salary' of €2,730. Therefore, in this case, the total cost for the employer will be: €3500 + €1470 = €4970.
Care Homes and Assisted Living in France
Residential care homes can cost around €2,000 per month (although prices vary throughout the country), with fees covering accommodation, meals, and cleaning services; medical and hospice care; and non-medical assistance for day-to-day living.
Any resident with French social security can access highly-subsidized dental care through their carte Vitale. The government sets official tariffs for basic dental treatments and healthcare in France. The patient pays the dentist up front, but 70% of the official rate is reimbursed by the state healthcare system.
The French healthcare system is known as 'L'Assurance Maladie', and it's available to all French residents. However, the system isn't free – it's paid for by a combination of state funds and patient contributions (which may, in turn, be covered by a mutuelle or top-up insurance – more on that later).