Understanding
French Payroll
French payroll sometimes
appears complex compared
to that of the English, just
because of the length of the
French payslip!
T
his seems difficult to comprehend, especially when
you understand why there are so many lines of
deductions for taxes on wages. In general, an
employee in France pays between 20% and 25% of
taxes on his salary spread over 5 major points:
1. Health and social security
2. Retirement
3. Unemployment insurance
4. Taxes
5. Other
The deductions are calculated on a basis of Bands
A, B or C that represent the monthly limits of
social security. The monthly ceiling for social
security in France is €3036 and you should know
that there are 8 ceilings divided as follows:
- Band A = 1 scale (plafond) who is €3086
- Band B = 1 to 4 monthly ceilings from €3086, €6172,
€9258 to €12344
- Band C = 4 to 8 monthly ceilings from
€12344, €15430, €18516 to €21602
Photography:
Gary Wallis.
www.wallispictures.com
14
The French social legislation has set a National minimum
wage at €9.43 per hour, or €1430.22 per calendar
month. This amount is reviewed and amended if needed
twice a year on 1st January and/or 1st July, depending
on the Government in place and inflation levels.
Accolade
OCTOBER 2013