Declare and pay your employees' social contributions and contributions

Verified 01 January 2024 - Legal and Administrative Information Directorate (Prime Minister)

Regardless of the contract, the employee receives a net salary after deduction of contributions and social contributions. It's theemployer that carries out the statement of those contributions to theUrssaf: titleContent (general case) or MSA: titleContent (if it is an agricultural activity). We'll explain everything to you.

In summary

Social contributions are sums (payments) deducted of the gross salary. They are prepayments on the gross salary, i.e. withheld before payment of the salary. The employee then receives the net salary that the employer pays him.

Contributions entitle the employee to a social protection in case of, for example, sickness, unemployment or when claiming pension rights.

It's theemployer who must calculate and declare the social security contributions of each of its employees to theUrssaf, or MSA (for agricultural professions).

The social contributionsmay be charged to:

  • either of the employee (wage share)
  • or the employer (employer's share). For example, the sickness contribution includes only an employer's share.
  • either of both

Warning  

If you are an individual entrepreneur, micro-entrepreneur or equivalent employee manager, subject toincome tax, you should not be confused with your own contributions asself-employed. For more than details, you can consult our section I manage my taxes and contributions. Or our summary sheets on the subject such as: All you need to know about the contributions of your micro-company

General principle of calculation

They are calculated in percentage salary.

Of different rates correspond to each contribution (sickness, old age, unemployment, etc.). They are set by order in council.

The basis of the calculation may be some or all of the remuneration of the employee for his work performed.

The amount of contribution is the product of multiplication : the amount of remuneration (also known as the basis of calculation or the basis of assessment) multiplied by the rate in force.

Example :

Concerning theold-age insurance for pension entitlements, the contribution rate applies only to the part of the remuneration below a ceiling. This ceiling is called the annual social security ceiling (PASS). Its amount is fixed every 1er January. It stems from the Social Security Finance Act (SFSA). In 2023, for example, the monthly limit is €3,864.

Payment (payment) of contributions

The employer shall carry out payments, i.e. the payment contributions (employer's and employee's share) to the Urssaf (general case) or the MSA (in the case of an agricultural activity).

Payment of contributions open then the employees' rights their social protection benefits.

Please note

The social protection of the most employees and self-employed (unregulated craftsmen, traders and liberals settled from 2019) is insured by the general social security scheme. Only the self-employed of the regulated professions (lawyers, accountants, architects, etc.), micro-entrepreneurs settled before 2018 and the unregulated professions settled before 2019, have specific insurance funds (Cnavpl: titleContent and Cipav: titleContent).

The calculation rules and rates for each contribution are sometimes complex for a new employer.

Before you start, you can ask for a accompaniment.

This is a tracking in straightforward and a practical aid by social protection professionals: staff of theUrssaf: titleContent. He is free.

The Urssaf First Hire Service

Want to hire your first employee?

The Urssaf offers you a 12 months.

The goal is for you guide in your filings and the payment of your contributions.

This accompaniment offers following services :

  • Support in all your steps dematerialized
  • Responses quick response to your requests and questions
  • Support on your responsibilities and the regulation applicable
  • Preventive monitoring your account to limit reporting and payment incidents

How do I request this support?

Contact the service ofUrssaf by one of the following means:

  • Via your e-mail accessible from your online space on urssaf.fr by selecting: " Other subject matter (information, documents or supporting documents))” and then “ Be accompanied as a new employer 
  • By telephone 0806 803 895 (free service + call price), monday to friday from 9am to 5pm

Some social contributions are paid only by the employer, and are called contributions employers. They are the most numerous.

Other contributions are only paid by the employee; they are called contributions wages. There are only 2 of them: CSG: titleContent and the CRDS: titleContent.

Finally, other contributions are due at the same time by both, the employee shall be his employer. They are said to be both wage and management. It's primarily contributions retreat.

You can see their full list below.

Only the employer shall be liable

There are contributions that are solely paid by the employer:

  • Contribution of family allowances 
  • Unemployment insurance contribution which finances unemployment benefits
  • Social security contributions covering sickness, maternity, invalidity and death insurance
  • Solidarity Autonomy Contribution (CSA)
  • Workers' compensation contributions 
  • Payment to the National Housing Fund (Fnal) 
  • AGS Contribution
  • Social Package
  • Freight payment (for employers with more than 9 employees in an urban transport area).

Employee-only

Social security contributions are borne solely by the employee:

The employee and the employer shall be responsible

The contributions and contributions are as follows:

  • Social security contribution covering insurance basic old age (retirement from the general scheme or the agricultural social protection scheme)
  • Contribution from supplementary pension (obligatory), which is paid to the Arco (for all management and non-management employees in the private sector) and Agirc (in addition to management) funds, at the following rates: 60% by the employer and 40% by the employee 
  • Contribution Apec: titleContent (for frames only)

FYI  

The contribution ofunemployment insurance is no longer dependent on the employee, except for intermittent of the show, employees working in Monaco and some expatriate employees.

The basic amount on which social contributions are calculated is called the social base.

This social base corresponds to a share of the income of the employee.

Feel free to use the Urssaf simulator to estimate the monthly contribution amount and total compensation cost:

Calculate the social contributions for the hiring of an employee and the expected remuneration

What are the contributory elements of the remuneration?

These are the following compensation elements:

  • Gross wages (e.g. overtime pay, night work allowances, tips, etc.)
  • Premiums and allowances (leave with pay, seniority, performance, periodic penalty payment, 13e months, strain, etc.)
  • Accident at work Replacement income and supplementary social benefits: the salary paid to an employee who is away from work, in order to maintain all or part of his remuneration during his interruption of activity (sickness, maternity or freedom from work)
  • Extra-legal family benefits (nursery premiums, family supplements)
  • Benefits (sums of money) provided by the Social and Economic Committee (ESC)
  • Benefits in kind (food and accommodation for example).

Please note

Where the employer makes available to the employed person a electrical terminal of vehicle charging located at the workplace, the benefit in kind from the use of this kiosk for non-business purposes is not recognized.

What are the non-contributory elements of remuneration?

The following elements included in the remuneration are not subject to contribution:

  • Per diem paid by social security 
  • Substitute earnings: retirement and invalidity pensions, unemployment and early retirement benefits 
  • Premiums linked to theprofit sharing or to the participation of employees to the company's performance (under a collective agreement) 
  • Bonuses related to the presentation of the Medal of Honor of Work, within the limit of the basic monthly salary 
  • Compensation considered as damages (severance pay)
  • Employer's supplementary pension and supplementary pension contributions
  • Reimbursement of professional expenses may be justified (e.g. catering costs, travel, purchase of clothing, etc.)

What is the minimum threshold and the social base ceiling?

The basis for calculating contributions may not be less than minimum remuneration legal or conventional (i.e Smic). This minimum tax base shall not apply to contributions calculated on a flat-rate basis. It does not apply to multi-card VRPs, interns and certain managers (those who are not bound by a company employment contract).

Conversely, some contributions are capped : beyond a certain amount or ceiling, remuneration is no longer taken into account for the calculation of contributions. This is the case for part of the old-age and Final: titleContent.

This ceiling is called the annual ceiling on social security. Its amount is fixed every 1er January. It stems from the Social Security Finance Act (SFSA). The amount taken into account is that of the monthly ceiling social security (PMSS). In 2023, for example, the monthly cap is set at €3,864.

Tableau - Social security ceiling by pay frequency

 

2023

2022

2021

2020

Year

€43,992

€41,136

€41,136

€41,136

Quarter

€10,998

€10,284

€10,284

€10,284

Month

€3,666

€3,428

€3,428

€3,428

Fortnight

€1,833

€1,714

€1,714

€1,714

Week

€846

€791

€791

€791

Day

€202

€189

€189

€189

Time

€27

€26

€26

26

FYI  

The reward of a trainee, which is compulsory from 2 months of an agreed traineeship, shall be exempt from social security contributions if it is less than €4.35 per training hour. Above this threshold, it is subject to social contributions.

You can visit the Ameli website to learn more about the different ceiling amounts used :

  • Current year’s daily, weekly, monthly (PMSS), quarterly, or annual (Pass) PSS
  • Commonly used PSS multiples (e.g. 0.10% of the Pass)

The other contributions are due on the entire remuneration, they are said uncapped.

Please note

The CSG-CRDS calculation base is broader than that of social contributions. The non-contributory elements of remuneration are added.

Over what period should the ceiling be determined?

The determination of the social security ceiling for the calculation of social contributions shall be that of the period of work giving rise to remuneration.

The ceiling shall be adjusted in proportion to the time actually elapsed. That is, according to the pay periodicity.

Where the employee has not been present during the whole of that period, the ceiling shall be adjusted according to the days covered by the employment contract during that period.

Special rules apply to part-time employees and those excluded from monthly payments.

Example :

In the case of payment of the December salary at the beginning of January, the applicable social security ceiling shall be that of December.

This ceiling will also be applied to remuneration linked to the same pay payable for work performed, if any, in other periods.

Who makes the statement?

You can:

  • Or do it yourself
  • Either assign it to a reporting third party such as a chartered accountant or to your human resources department
  • You can do it yourself for some statements and assign the others to a third party declarant such as a chartered accountant.
How?
General scheme

For your employees connected to the general social security scheme, you must make the DSN on the website net-companies.fr.

Nominative Social Declaration (DSN)

You must register and sign up for an account on net-companies.fr.

You have the choice between an account where you self-declare and an account where you designate another person (an accountant, a payroll officer).

Agricultural sector

You must make the DSN on the website of the MSA: titleContent.

MSA - Companies and farmers - DSN: online declaration

FYI  

Quarterly reporting (DST-MSA) is no longer possible as of the January 2024 payroll. Employees must be reported either via the DSN either via the TESA+ (title employment agricultural service). Note that the TESA-S (title simplified agricultural use) is henceforth DSN compatible.

To choose the option that suits you, the MSA offers you a guide and instructions for use for each.

Dashboard

After the declaration, you should consult your dashboard to see the responses of social organizations.

Social agencies send you compliance receipts, anomaly summaries, and attestations that you can download, then save, and print.

DSN Tracking and Fault Reporting

The Urssaf has implemented a tool called “DSN Tracking” that sends you a report of the anomalies identified on your declaration. You can then quickly correct them by following the advice let the Urssaf tell you.

These reports shall be called CRM (business reporting). They group the anomalies in your report by checking for inconsistencies.

You can consult the user's guide of this service:Urssaf DSN Tracking Guide.

FYI  

In the profile from your account, you must check the box " Dashboard DSN Tracking ”.

Materialized Employer Attestation (AER)

Pôle emploi generates a re-materialized employer certificate (AER) that summarizes information about your employees.

You must download the AER, print it, sign it and hand it over to the employee concerned.

Which payroll software to choose?

You must have a DSN-compliant payroll software.

This software is used to "translate" the pay slip data into DSN data.

If you do not have a payroll software, you can choose one of the following services:

  • Izilio BTP for construction companies
  • Izilio professional ticket office for companies of live entertainment, audiovisual and cinema
  • Associative Employment Check (CEA) for non-profit associations or foundations, with less than 20 employees

The pay NSN must be purchased during the month depending on the period of paid employment.

Please note

Companies with less than 11 employees may choose to make the DSN quarterly, not monthly.

Less than 50 employees and 50 or more employees on pay gap

No later than 15 of the month

Please note

In case of a pay gap, the payroll tax reductions are calculated on 13 payroll.

In order to calculate the reduction in the rate of contribution for family allowances, the remuneration for the 13 months must be taken into account and reduced to 13 monthly minimum wages.

Companies with less than 11 employees who report to DSN each quarter must also do so by the 15th of the month following the period of work performed.

50 or more employees

No later than 5 of the month

Please note

These are employers with a minimum of 50 employees whose pay is paid in the same month as the period of work.

General case

Payment by dematerialized channel is mandatory, regardless of income from activity or turnover.

This is done in one of the following ways:

  • For micro-entrepreneurs: by telepayment or credit card
  • For other entrepreneurs: by direct debit, telepayment, credit card or transfer

The monthly payment contributions become the rule.

Please note

The companies of minus of 11 employees may choose to make the payment quarterly.

Companies with more than 250 employees
One-time payment (OV) is required

Companies that have more than one facility can centralize their social security returns and their payment of contributions in a the only center in Urssaf. This device is called VLU.

The VLU is obligatory for companies with 250 or more employees.

It is optional for others.

How do I proceed with the VLU?

The company must make a application for authorization.

The paperless file must be returned to the department Urssaf VLU large accounts National Fund:

If the request is made before 31 October, the ELV scheme shall then be implemented on 1 Octoberer January of the following year.

For companies who practice payroll offsetting, the implementation of the VLU is effective at 1er December of the current year.

So that his request for an ELV is accepted, the employer must be in contact with at least 2 Urssaf centers.

The employer must also be up to date of his contributions and returns.

Please note

In the event of disputes, the competent court is the court of the jurisdiction where the (single) company social security body is located.

You may be exempted from paying (exempt) certain social contributions based on several criteria.

These criteria include:

FYI  

You can consult the official search tool that lists all state and local aid:

State aid and local authorities database

Who can help me?

Find who can answer your questions in your region