7. Social Security Contributions in France

1. 7.1. Introduction
   7.2. Employers and Employees
   7.3. Self-Employed
   7.4. Retired Persons
   7.5. Early Retirees
   7.6. Social Charges (CSG/CRDS/PS)

7.1. Introduction

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 paid by business owners are tax deductible, in whole or in part (although it does depend on your tax regime).

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, certain social charges (called contributions sociales or prélèvements sociaux) are ostensibly a payment into the social security system, but are viewed by most people as part of the system of general taxation. Some of these social charges are also tax deductible.

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, health.