2. Retirement/Pension
• “VIEILLESSE”: contribution “vieillesse plafonnée” using
the Band A with a contribution of 6.75% employee
and 8.40% employer. There is also the “Vieillesse
déplafonnée” which is based on the gross salary with
a contribution of 0.10% employee and 1.60% for the
employer. This deduction is used to fund the general
retirement fund managed by the State.
• AGFF (ASSOCIATION FOR THE MANAGEMENT OF THE FUND’S
FINANCING OF THE AGIRC AND ARRCO): concerning the
supplementary pension which the basis of calculation
uses all the 8 levels of the monthly social security
and the status of the employee (manager or not).
3. Unemployment Insurance
THEREFORE, TO DECRYPT YOUR FRENCH PAYSLIP,
YOU HAVE TO UNDERSTAND THE PURPOSE
OF THE FOLLOWING DEDUCTIONS:
• ASSEDIC: contributions limited to 4 monthly ceilings
(Bands A + B) with 2.4% of the employee share and
4% for the employer.
1. Health and social security
• FNGS (National wage guarantee fund): dues only paid
by the employer at the rate fixed by 0.30% (since April
1, 2011). Unemployment insurance paid if they were to
stop paying his/her employee.
Includes:
• SICKNESS: the calculation uses the gross salary; the
employer’s contribution is at the rate of 12.80%
while the employee pays 0.75%. This deduction is
used to fund the national health insurance system.
• ACCIDENT AT WORK: the rate is set each 1st January
for each company. The rate depends on the number
of accidents at work registered by Social Security for
each employer. This is an employer’s payroll charge
based on the gross salary.
• WIDOW/WIDOWER’S INSURANCE: contribution
of 0.10% based on the gross salary
and only paid by the employee.
• APEC (Association for employment of managers and
executives): contribution on the basis of the Bands
A and B with a rate of 0.024% for the employee and
0.036% for the employer. Unemployment insurance for
managers.
• AGS (insurance executive salaries): insurance to
be paid to the employee should the Company they
work for go out of business. It’s paid by the use
at the rate of 0.30% of the Bands A to B.
4. Taxes
FNAL (National Fund for housing):
• HOUSING BENEFIT CONTRIBUTION TAX. In France it is not
uncommon for families to receive a monthly government
allowance to help pay their rent (like a housing
benefit). The contribution is 0.50% on the basis of the
gross wage is only paid by the employer for companies
of employing 20 or more workers. Employers with fewer
than 20 employees contribute on the basis of Band A
and no more than 0.10%.
• FAMILY BENEFITS: tax that is used to finance the
monthly government allowance that most families
with children receive. This contribution is paid by
the employer on the basis of gross wage at a rate of
5.40%.
• CSG (GENERALIZED SOCIAL CONTRIBUTION) AND
CRDS (SOCIAL DEBT REPAYMENT CONTRIBUTION):
deduction which is used to pay off the debts
and deficits that some social service agencies
incurred during the early nineties.
5. Other deductions
• COMMUTING ALLOWANCE/ TRANSPORT CONTRIBUTION:
Compulsory non-taxable payment to the employee that
depends on the distance of the worker’s residence
and Company location. For example, in Paris and
surrounding, the use is to pay back up to 50% of the
employees monthly train ticket.
• MEAL VOUCHERS: non-compulsory (but quite common
in some industries) non-taxable payment towards
meals and subsistence. The company sometimes
gives to each of its employees’ one meal voucher per
day worked in the office. The company pays between
50% and 60% of the cost of the meal voucher, the
rest is withheld from the employee’s net salary. The
highest possible lunch voucher face value is € 10.42.
So in summary there is not that much difference
between French payroll and English payroll: the
main difference is that the English show the social
security deductions in one line and leave it to HMRC
to split contributions between health, retirement,
etc. The French play on transparency in accordance
with the social legislation and show where both
the employee and employer money is allocated.
There are other nuances with French payroll but if
it is e xplained simply as we have done so above
then most people can understand it! If there are
other queries you have on French Payroll our experts
are happy to assist in any way they can. Contact
us at enquiries@acrede.net and we can share our
knowledge and improve your business processes.
Accolade
OCTOBER 2013
15