The French Social Security System Social Security and unemployment contribution rates

as of January 1st, 2018
Risks Rate
& Monthly ceiling
Employee Employer
Social Security
Health, maternity, disability, death(1) - 13%
total earnings
Autonomy solidarity contribution ("Contribution solidarité autonomie"/ CSA) - 0.3%
total earnings
Old-age insurance (with upper limit) 6.9%
3,311 €
8.55%
3,311 €
Old-age insurance 0.4%
total earnings
1.9%
total earnings
Accidents at work(2) - variable based on company size and risks
total earnings
Family benefits(3) - 5.25% or 3.45%
total earnings
Social security surcharge ("Contribution sociale généralisée" / CSG)(4) 9.2%
98.25% of gross salary
-
Social security debt reimbursement contribution ("Contribution pour le remboursement de la dette sociale"/ CRDS)(4) 0.5%
98.25% of gross salary
-
Unemployment(1 and 5) - 4.05%
13,244 €

AGS(6)

-

0.15%
13,244 €
Supplementary pensions (7)
Non-executive employees (ARRCO)
- Bracket 1 3.1%
3,311 €
4.65%
3,311 €
  AGFF bracket 1 0.8%
3,311 €
1.2%
3,311 €
- Bracket 2 8.1%
from 3,311 to 9,933 €
12.15%
from 3,311£
to 9,933 €
  AGFF bracket 2 0.9%
from 3,311 to 9,933 €
1.3%
from 3,311
to 9,933 €
Executive employees (AGIRC)
- Bracket A 3.1%
3,311 €
4.65%
3,311 €
- Bracket B 7.80%
from 3,311
to 13,244 €
12.75%
from 3,311
to 13,244 €
- Bracket C 7.8%
from 13,244
to 26,488 €
12.75%
from 13,244
to 26,488 €
  AGFF brackets B and C 0.9%
from 3,311
to 26,488 €
1.3%
from 3,311
to 26,488 €
  1. As from January 1st, 2018, under the 2018 social security financing law:
    -The 0.75% employee's health insurance contribution has been eliminated,
    -The employee's unemployment insurance contribution has been lowered from 2.40 to 0.95% (this contribution will be completely eliminated effective October 1st, 2018).
    -The employer's health, maternity, disability, and death contribution rate has increased from 12.89% to 13%.
  2. This rate varies based on company size and risks.
  3. As from 1st January 2015, there is a second family benefits contribution rate of 3.45% applicable to businesses covered by the "Fillon" reduction and only for salaries lower than 1.6 times the legal minimum wage (SMIC). As of April 1st, 2016, this 3.45% rate also applies to annual salaries lower than or equal to 3.5 times the legal minimum wage (SMIC).
  4. The 2018 social security financing law increased CSG withholdings by 1.7 points on earned income (increase from 7.5 to 9.2%) and on retirement and disability pensions (increase from 6.6 to 8.3%).
    Persons who are members of the French social security scheme but not residents of France for tax purposes are not liable to CSG and CRDS. They are however liable for employee's health insurance contributions at a rate of 5.5% on total earnings. CSG and CRDS are also deducted at rates of 6.2% and 0.5% respectively from replacement income (Daily compensation benefits, unemployment benefits, etc.)
  5. The upper limit is equal to 4 monthly social security ceilings (4 x 3,311 €). The unemployment insurance contribution rate has been adjusted as from July 1st, 2013: the employer's contribution due on fixed-term contracts lasting 3 months or less has been increased by 0.5%
  6. AGS: wage guarantee insurance association. It is entirely employer-funded and finances the wage guarantee scheme: if a company goes into a receivership or court-ordered liquidation, it guarantees the payment of employees' wages, notice period, and compensation. The contribution rate has been lowered by 0.2% as from July 1st, 2017.
  7. Supplementary pensions: The contribution rate (125%) is generating surplus contributions without increasing pension entitlements. Points are calculated based on the contractual rate. For an employer's and employee's contribution of 7.75%, only 6.20% is used to calculate the employee's pension points while the rest is used to finance the scheme. The AGFF contribution (Association for the management of the AGIRC and ARRCO financing fund) helps to finance pensions for people who retired before the age of 65. It does not generate any points. In addition to the supplementary pension contributions mentioned above, other contributions are paid without generating points. These are:
    • The exceptional and temporary contribution (CET): this is a solidarity contribution set up by the AGIRC scheme. It is paid on total earnings up to 8 times the social security ceiling. The rate is 0.35% (0.22% paid by the employer and 0.13% by the employee paying into the AGIRC scheme).
    • The APEC contribution: The Agirc funds collect the contributions that are needed to operate the Executive Employment Association ("Association pour l'emploi des cadres"/ APEC). Contributions are deducted from executive employees' total earnings, up to 4 times the Social Security ceiling.