How do I calculate my “employer’s contribution” in France?

Calculating employer’s contribution

As an employer in France, when paying your employee, there’s additional cost you must pay. This is what’s known as the “employer’s contribution”.

How do you calculate them?

In truth, employers’ contributions are made up of quite a few expenses: housing, salary guarantees, solidarity, work accidents, retirement insurance, unemployment, family grants, and disease insurance. Depending on how high the salary is, the employer’s contributions will be between 15% and 42% of the gross salary.

The exact breakdown:

Generally, 42% is the number you should keep in mind. Though, if you pay your employee less than 1.6 times the minimum wage, you’ll get a tax reduction and the employer’s contribution could be as little as 14%.

But if you want more details, then here’s how it’s calculated exactly:

Nature of contributionsRateTax base
Autonomy solidarity contribution0.3%Total salary
Health Insurance13%Total salary
Capped old-age insurance8.55%Between 0 and 3311 € per month
Unemployed old-age insurance1.85%Total salary
Family allowances5.25% or 3.45% (depending on income)Total salary
Unemployment contribution4%Between 0 and 13 244 € per month
Wage Guarantee Fund0.25%Between 0 and 13 244 € per month
Supplementary non-executive pension (bracket A)4.65%Between 0 and 3 311 € per month
Supplementary non-executive pension (bracket B)12.15%Between 3 311 and 9 933 € per month
Complementary retirement pension (tranche A)4.65%From 0 to 3 311 € per month
Complementary retirement pension (tranche B)12.75%From 3 311 to 13 244 € per month
Complementary retirement pension (tranche C)20.55%From 13 244 to 26 488 € per month
Death insurance1.5%From 0 to 3 311 € per month.
Housing assistance0.10%From 0 to 3 311 € per month.
Professional trainingfrom 0.55 to 1%Payroll
Tax Learning0.68%Payroll