Understanding the French salary slip, or the French payslip, is a must for every expat who resides in this country and has found a job. We searched all over the internet and did the job for you; in this article, you'll get the French payslip explained.
What is the French payslip?
In simple words, the French payslip is a document that shows how an employee's final salary is calculated. Employers issue them every month and forward them to workers.
We’re sure you’re a good worker, but remember to be a good family member, too. Call your family back home and send them a fast, secure Profee transfer.
What are the payslip components?
The payslip components can be divided into general information, deductions on the payslip, and final calculations.
Let’s have a look at the French payslip example to get a better understanding:
Payslip components: the “general information”
They include all the essential information about a company and an employee. You can think of it as an introduction that helps to understand what the document is about.
What should be included in the company data:
- Name of the organisation
- The official address of the organisation
- SIREN number. This is a registration number that every official company should have.
- NAF/APE code. his code refers to the company's industry and main activity. For example, if the organisation's primary business is fishing, its NAF code will be 03.1. You can check the full list of industries and their codes on this website.
- URSSAF/MSA number. It is a unique identifier used in France for social security contributions. MSA numbers are specifically for agriculture workers and farmers.
Every payslip should have this, so check whether your employer provides all the necessary data.
Moving to the employee details:
- A full name.
- Official position and grade, as it was stated in a job offer.
- The date when a worker joined this company.
- Years of work in the company.
- Type of the contract that the worker signed with the company.
- Collective agreement
- Social security number
Finally, this payslip should refer to a certain period, usually a month.
Deductions on payslip
Salary deductions in France include tax deductions and social security contributions.
Deduction 1: Income tax
Taxation in France for expats depends on whether you’re a tax resident. If yes, your entire income will be taxable, even from a foreign country. On the other hand, if you’re not a tax resident, only your French income will be taxable. However, on the French payslip, you get the information only from the company you're working in and its salary; nothing else is included.
This country applies a progressive income tax system, meaning that the more you earn, the more you pay. Overall, the tax salary deductions in France depend on many factors, such as money earned, being single/having a spouse, etc. You can read more on the official website, while we’ll look at the example of a single man who earns €30,000 per year.
The progressive system in France is as follows:
- Up to €11,294 → 0%
- €11,295 – €28,797 → 11%
- €28,798 – €82,341 → 30%
- €82,342 – €177,106 → 41%
- Above €177,106 → 45%
Therefore, our single man’s taxes will be:
First €11,294 of the salary: 0% From €11,295 to €28,797: (€28,797 - €11,294) × 11% = €17,503 × 11% = €1,925.33 From €28,798 to €30,000 : (€30,000 - €28,797) x 30% = €1,203 × 30% = €360.90.
The total sum will be: €0 + €1,925.33 + €360.90 = €2,286.23. This is what should be shown on the French payslip.
What are the French income tax payment dates? If you're an employee, it shouldn't bother you, as the company is the party that has to pay. However, workers should fill in the annual tax return. The deadlines to file vary from region to region. You can read more about it and other French income tax payment dates here.
Take your time and learn more about the taxation in France for expats to avoid paying pennies.
Deduction 2: Social security contributions
The next part in the deductions on the payslip is social security contributions. Knowing them is essential for understanding the French salary slip.
You or your employer pay this to government and private institutions regarding your future social needs. Deducting them is a part of finalising your net salary in France (we’ll explain how to calculate net salary from gross salary in France later in this article).
These contributions are divided into five sections.
Section one: Health
Includes payments that the company will pay you in case of your inability to work due to health reasons. By this, we mean any sickness, maternity, disability, or death. So when you take sick leave, the worker pays you out of these previous deductions.
You may think this is unnecessary, but it's your airbag in an emergency. It's like putting money aside when the bad times (or happy times, in the case of maternity) come.
Section two: Accidents at work
The employer is responsible for providing a safe environment, so they pay these contributions, meaning that they are not deducted from your gross salary. The rate is calculated based on your full salary and differs from company to company because of the specifics of certain businesses.
Section three: Retirement
If you were born in 1955 or later, you can say goodbye to work at 62 in France. Before that, the government saves a small portion of your salary to return to you as a pension while you enjoy the benefits of being retired.
The higher your salary, the better retirement payments you get, so this is a great motivation to work on your expertise and create a perfect CV. Also, only the official work years count when calculating the pension, so always sign a contract with a legit company.
Section four: Family
Like the accidents at work, the employer is responsible for financing family allowances. When you have your second child, CAF (Family Allowances Fund) will give you this money monthly. The payments will continue until your second child reaches the age of 20.
Family allowances are one way to support local families. So, if you plan to become a French citizen and build a family here, remember your right to receive some funds.
Section five: Unemployment
If you lose your job after working for 130 days or 910 hours (approximately 6 months) within the past 24 months, you can claim unemployment benefits. Your employer pays for these benefits in advance. Yes, your boss is already preparing for you to leave (hopefully feeling sad as you're a golden worker).
Additional section: CSG, CRDS and other employer contributions
If you search for some French payslips examples you’ll see confusing abbreviations CSG and CRDS. We’ve got you covered:
- CSG is the general social contribution, it finances the social protection system of the whole country.
- CRDS is the social debt repayment contribution.
It's all you need to know here.
Final calculations
We’re closer and closer to getting the French payslip explained. Now, let’s move to the final steps.
Except for what we already mentioned, every payslip must contain:
- Your gross salary;
- Hours that you worked in the period that the payslip refers to (including overtime);
- Social security ceiling;
- Employer total cost and payment;
- Employer social contribution relief.
With all this, you can see the complete picture of your net salary in France.
Remember we promised to show you how to calculate net salary from gross salary in France? The time has come. Take your gross wage and deduct the income tax and everything from the social contributions. That's it; you nailed the French payslip!
How can you use a payslip as an expat
A payslip is a proof of your working status in an official company and income, so it may be handy when you:
- Rent a flat;
- Apply for a loan or open a bank account;
- Deal with the utilities, on which you can save once you know the tips.
- Declare income;
- Apply for visa or resident permit extensions;
And so much more. So keep this document safe!
Conclusion
In this article, we went through the main components of the French payslips. Among them are the general information about a company and a worker, all the deductions (in this case, taxation in France for expats is similar to the local), and the final calculations of your net salary (what you get in the very end). This is an important document that opens many opportunities for you as an expat. Take care of it! Profee will take care of your transfers.
