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 contributions | Rate | Tax base |
| Autonomy solidarity contribution | 0.3% | Total salary |
| Health Insurance | 13% | Total salary |
| Capped old-age insurance | 8.55% | Between 0 and 3311 € per month |
| Unemployed old-age insurance | 1.85% | Total salary |
| Family allowances | 5.25% or 3.45% (depending on income) | Total salary |
| Unemployment contribution | 4% | Between 0 and 13 244 € per month |
| Wage Guarantee Fund | 0.25% | 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 insurance | 1.5% | From 0 to 3 311 € per month. |
| Housing assistance | 0.10% | From 0 to 3 311 € per month. |
| Professional training | from 0.55 to 1% | Payroll |
| Tax Learning | 0.68% | Payroll |
