7. Social Security Contributions in France

1. 7.1 Basic Rules of French Social Security
2. 7.2 Employers and Employees in France
3. 7.3 Self-Employed
4. 7.4 'Retired' Persons in France
5. 7.5 Property and Investment Income in France
6. 7.6 Social Welfare Levy in France

---

7.1. Basic Rules of French Social Security

In contrast to most European countries, where the social security system is financed through general taxation, the system in France is funded directly through social security contributions.

You will find that if you are either an employer, employee or self-employed, the level of social security contributions is high, indeed, one of the highest in the world.

One important distinction from practice in the UK and many other countries is that, with minor exception, social security contributions are tax deductible.

Accordingly, income tax is charged after most social security contributions have been deducted.

The system is also complicated by the fact that in France the distinction between taxation and social security contributions is not as clear-cut.

In particular, a social welfare levy (called prélèvements sociaux) is ostensibly a payment into the social security system, but is viewed by most people as part of the system of general taxation.

Neither is there a single national insurance charge in France, in the same way as is the case in the United Kingdom. There are different charges for each of the benefits e.g. family benefits, pensions.

---

7.2. Employers and Employees in France

The following table shows the basic level of the main contributions that are payable by both employer and employee.

The rates shown are based on a percentage of salary. They have been averaged and summarised for ease of understanding.

Therefore, in practice, you will find that there are slight variations in the rates, depending on the industry, the job and the level of the remuneration.

The employer rates are also lower on wages on or around the minimum wage, or for part time employees.

Accordingly, there is probably no employer who pays the full amount for all their employees so the figures should be used for general guidance only.


Table: Employers and Employees in France

Charge	Employer	Employee
Family Benefits	5.40%	0%
Health/Sickness	12.80%	0.75%
Social Welfare Levy	0%	8.0%
Accident at Work	3%	0%
Unemployment Benefit	4.40%	2.40%
Main Pension	9.90%	6.75%
Comp Pension	16.45%	11%
Total (say)	52%	29%

In addition to these main contributions the employer is also responsible for a number of other minor contributions, most of which only apply to those with nine or more employees, e.g. transport, accommodation and training contributions.

---

7.3. Self Employed Persons

If you are self-employed then the level of your contributions are range from around 31% to 40% of net earnings, depending on your legal and tax status, and the nature of the business in which you are engaged.

Once again, therefore, the following figures should be only as a general guide.


Table - Self-Employed

Charge	Rate
Family Benefits	5.40%
Health/Sickness	6.5%
Social Welfare Levy	8%
Invalidity Benefit	2%
Pension	23%
Training Levy	0.15%
Total (say)	45%

There are various exemptions that operate for the self-employed, notably in relation to those starting a business in a development area, or out of unemployment.

You can read a more detailed review of social security contributions for the self-employed in our pages on Starting a Business.

---

Next: French Social Security for the Retired