Social Package

Verified 01 September 2023 - Directorate for Legal and Administrative Information (Prime Minister)

The social package is a employers' contribution implementation on certain remuneration paid by the employer. It is recovered by theUrssaf under the same conditions as social contributions. Its plate and its rate vary according to the number of employees company.

Less than 11 employees

The social package is a employer contributionSo we're talking about employers' contribution.

In principle, this contribution is levied on remuneration or earnings which fulfill the 2 following cumulative conditions :

  • Remuneration subject to generalized social contribution (CSG)
  • Remuneration exempt from social security contributions

However, the Act provides exceptions. Some salaries are sometimes subject to the social package even though they do not meet the 2 conditions. Conversely, other remuneration is excluded from the social package, without taking into account whether it is subject to CSG or contributions.

Some business income is included in the plate of the social package, others are excluded.

Included revenue

The following amounts are submissive to the social package:

  • Coverage of supplementary pension contributions : this is the contributions paid during the first 6 months of a family event leave (parental education leave, family solidarity leave, family support leave, parental attendance leave)
  • Attendance fees and remuneration of the social mandate : this refers to the amounts received by the directors and members of the supervisory boards of SA: titleContent and SELAFA: titleContent

FYI  

Since 1er september 2023, thecontractual severance pay is no longer subject to the social package of 20%. Instead, a single contribution of 30 % (at the expense of the employer) shall apply to the allowance paid.

Excluded income

The following amounts are excluded the basis of the social package:

  • Stock option and free share allocations : subject to a specific contribution
  • Employer's Supplementary Retirement Contributions : for their part subject to social security contributions
  • Allowances for termination of employment or compulsory termination of the duties of the social agents : dismissal, retirement or voluntary departure in the framework of a employment protection plan (ESP)
  • Investments in restaurant vouchers and universal service employment checks (Cesu)
  • Employer's contributions to supplementary welfare
  • Contributions to holiday vouchers : provided that the company does not have an ESC and is not part of a joint social management body
  • Participation Bonuses and abundances from the employer to a wage savings plan (PEE: titleContent, Perco: titleContent, Pere-co: titleContent, PEI: titleContent)
  • Incentive payments

The rate of the social package shall be 20%.

General case

You must report every month the plate and the amount of the contribution to theUrssaf: titleContent via the Nominative Social Declaration (DSN).

Nominative Social Declaration (DSN)

Agricultural sector

You must declare the base and the amount of the contribution on the website of the MSA: titleContent via the Nominative Social Declaration (DSN).

MSA - Companies and farmers - DSN: online declaration

Please note

the amount of the social security package must appear on the salary voucher in line "Other contributions due by the employer".

Less than 50 employees

The social package is a employer contributionSo we're talking about employers' contribution.

In principle, this contribution is levied on remuneration or earnings which fulfill the 2 cumulative conditions following:

  • Remuneration subject to generalized social contribution (CSG)
  • Remuneration exempt from social security contributions

However, the Act provides exceptions. Some salaries are sometimes subject to the social package even though they do not meet the 2 conditions. Conversely, other remuneration is excluded from the social package, without taking into account whether it is subject to CSG or contributions.

Some business income is included in the plate of the social package, others are excluded.

Included revenue

The following amounts are submissive to the social package:

  • Coverage of supplementary pension contributions paid during the first 6 months of a family event leave (parental education leave, family solidarity leave, family support leave, parental attendance leave)
  • Attendance fees and remuneration of the social mandate : these are the sums received by the directors and members of the supervisory boards of SA: titleContent and SELAFA: titleContent
  • Employer's contributions to supplementary welfare : exempt from social security contributions.

FYI  

Since 1er september 2023, thecontractual severance pay is no longer subject to the social package of 20%. Instead, a single contribution of 30 % (at the expense of the employer) shall apply to the allowance paid.

Since 1er January 2020, 11 employees above the threshold takes effect only when this threshold is reached or exceeded during 5 consecutive calendar years. It is only after this period that the employer is effectively subject to the social security lump sum. If the employer falls below the 11-employee threshold in the meantime, the meters are reset to zero.

Example :

At 1er January 2022, an employer reaches the threshold of 11 employees. The consequences of this threshold violation will only be taken into account if it is observed during the 5 consecutive calendar years (2022 to 2026 inclusive). Thus, from 1er in january 2027, the company will be subject to the threshold crossing obligation, provided that its headcount is always at least equal to the threshold.

Excluded income

The following amounts are excluded of the plate of the social package:

  • Stock option and free share allocations : subject to a specific contribution
  • Employer's Supplementary Retirement Contributions : for their part subject to social security contributions
  • Allowances for termination of employment or compulsory termination of the duties of the social agents : dismissal, retirement or voluntary departure in the framework of a employment protection plan (ESP)
  • Investments in restaurant vouchers and universal service employment checks (Cesu)
  • Contributions to holiday vouchers : provided that the company does not have an ESC and is not part of a joint social management body
  • Participation Bonuses and abundances from the employer to a wage savings plan (PEE: titleContent, Perco: titleContent, Pere-co: titleContent, PEI: titleContent)
  • Incentive payments

The rate of the social package shall be 20%.

However, a reduced rate 8% shall apply to contributions intended for the financing of supplementary provident benefits paid to employees, former employees and their dependants.

General case

You must report every month the plate and the amount of the contribution to theUrssaf: titleContent via the Nominative Social Declaration (DSN).

Nominative Social Declaration (DSN)

Agricultural sector

You must report every month the plate and the amount of the contribution on the MSA: titleContent via the Nominative Social Declaration (DSN).

MSA - Companies and farmers - DSN: online declaration

Please note

the amount of the social security package must appear on the salary voucher in line "Other contributions due by the employer".

Less than 250 employees

The social package is a employer contributionSo we're talking about employers' contribution.

In principle, this contribution is levied on remuneration or earnings which the following 2 cumulative conditions :

  • Remuneration subject to generalized social contribution (CSG)
  • Remuneration exempt from social security contributions

However, the Act provides exceptions. Some salaries are sometimes subject to the social package even though they do not meet the 2 conditions. Conversely, other remuneration is excluded from the social package, without taking into account whether it is subject to CSG or contributions.

Some business income is included in the plate of the social package, others are excluded.

Included revenue

The following amounts are submissive to the social package:

  • Coverage of supplementary pension contributions paid during the first 6 months of a family event leave (parental education leave, family solidarity leave, family support leave, parental attendance leave)
  • Attendance fees and remuneration of the social mandate : these are the sums received by the directors and members of the supervisory boards of SA: titleContent and SELAFA: titleContent
  • Employer's contributions to supplementary welfare : exempt from social security contributions
  • Participation in the results and abundances from the employer to the wage savings plan (PEE: titleContent, Perco: titleContent, Pere-co: titleContent, PEI: titleContent).

FYI  

Since 1er september 2023, thecontractual severance pay is no longer subject to the social package of 20%. Instead, a single contribution of 30 % (at the expense of the employer) shall apply to the allowance paid.

Since 1er January 2020, upward crossing of 50 employees takes effect only when this threshold is reached or exceeded during 5 consecutive calendar years. It is only after this period that the employer is effectively subject to the social security lump sum for profit participation and wage savings plans. If the employer falls below the threshold of 50 employees, the meters are reset to zero.

Example :

At 1er January 2022, an employer reaches the threshold of 50 employees. The consequences of this threshold violation will only be taken into account if it is observed during the 5 consecutive calendar years (2022 to 2026 inclusive). Thus, from 1er in january 2027, the company will be subject to the threshold crossing obligation, provided that its headcount is always at least equal to the threshold.

Excluded income

The following amounts are excluded of the plate of the social package:

  • Stock option and free share allocations : subject to a specific contribution
  • Employer's Supplementary Retirement Contributions : for their part subject to social security contributions
  • Allowances for termination of employment or compulsory termination of the duties of the social agents : dismissal, retirement or voluntary departure in the framework of a employment protection plan (ESP)
  • Investments in restaurant vouchers and universal service employment checks (Cesu)
  • Incentive payments

The rate of the social package shall be 20%.

However, reduced rates of 8%, 10% or 16% may be applied to certain remuneration.

8% rate

The reduced rate of 8% shall apply to contributions intended for the financing of supplementary provident benefits paid to employees, former employees and their dependants.

This rate shall also apply to sums allocated to the special reserve for participation within the Cooperative Production businesses (SCOP)).

10% rate

The reduced rate of 10% shall apply to the employer's share of the employees' contribution for the purpose of the acquisition of company securities or a linked company.

FYI  

For the years 2021, 2022 and 2023, the employer's abundance is exempted from social lump sum payments when it supplements the employees' voluntary payments on savings plans.

This rate also applies when the employer makes a additional unilateral payment for the purpose of acquiring securities of the company or a related company.

Rate of 16%

The rate of 16% applies to payments (profit-sharing, participation, abundance or unilateral payment) to a Perco: titleContent or a Father: titleContent.

To do this, the 2 following conditions must be complied with:

  • The Perco is in managed management. In this case, the saver entrusts the management of the payments to the management business chosen by the company.
  • The held portfolio of units shall include at least 10% of securities which may be used in a share savings plan for the financing of small and medium-sized companies (PEA-SME).

General case

You must report every month the plate and the amount of the contribution to theUrssaf: titleContent via the Nominative Social Declaration (DSN).

Nominative Social Declaration (DSN)

Agricultural sector

You must report every month the plate and the amount of the contribution on the MSA: titleContent via the Nominative Social Declaration (DSN).

MSA - Companies and farmers - DSN: online declaration

Please note

the amount of the social security package must appear on the salary voucher in line "Other contributions due by the employer".

From 250 employees

The social package is a employer contributionSo we're talking about employers' contribution.

In principle, this contribution is levied on remuneration or earnings which the following 2 cumulative conditions :

  • Remuneration subject to generalized social contribution (CSG)
  • Remuneration exempt from social security contributions

However, the Act provides exceptions. Some salaries are sometimes subject to the social package even though they do not meet the 2 conditions. Conversely, other remuneration is excluded from the social package, without taking into account whether it is subject to CSG or contributions.

Some business income is included in the plate of the social package, others are excluded.

Included revenue

The following amounts are submissive to the social package:

  • Coverage of supplementary pension contributions paid during the first 6 months of a family event leave (parental education leave, family solidarity leave, family support leave, parental attendance leave)
  • Attendance token and remuneration of the corporate mandate : these are the sums received by the directors and members of the supervisory boards of SA: titleContent and SELAFA: titleContent
  • Employer's contributions to supplementary welfare : exempt from social security contributions
  • Participation in the results and abundances from the employer to the wage savings plan (PEE: titleContent, Perco: titleContent, Pere-co: titleContent, PEI: titleContent)
  • Incentive payments : including interest supplements and project incentives.

FYI  

Since 1er september 2023, thecontractual severance pay is no longer subject to the social package of 20%. Instead, a single contribution of 30 % (at the expense of the employer) shall apply to the allowance paid.

Since 1er January 2020, upward crossing of the threshold of 250 employees takes effect only when this threshold is reached or exceeded during 5 consecutive calendar years. It is only after this period that the employer is effectively subject to the social lump sum as an incentive payment. If the employer returns below 250 employees, the counters are reset to zero.

Example :

At 1er January 2022, an employer reaches the threshold of 250 employees. The consequences of this threshold violation will only be taken into account if it is observed during the 5 consecutive calendar years (2022 to 2026 inclusive). Thus, from 1er in january 2027, the company will be subject to the threshold crossing obligation, provided that its headcount is always at least equal to the threshold.

Excluded income

The following amounts are excluded of the plate of the social package:

  • Stock option and free share allocations : subject to a specific contribution
  • Employer's Supplementary Retirement Contributions : for their part subject to social security contributions
  • Allowances for termination of employment or compulsory termination of the duties of the social agents : dismissal, retirement or voluntary departure in the framework of a employment protection plan (ESP)
  • Investments in restaurant vouchers and universal service employment checks (Cesu)

The rate of the social package shall be 20%.

However, reduced rates of 8%, 10% or 16% may be applied to certain remuneration.

8% rate

The reduced rate of 8% shall apply to contributions intended for the financing of supplementary provident benefits paid to employees, former employees and their dependants.

This rate shall also apply to sums allocated to the special reserve for participation within the Cooperative Production businesses (SCOP).

10% rate

The reduced rate of 10% shall apply to the employer's share of the employees' contribution for the purpose of the acquisition of company securities or a linked company.

FYI  

For the years 2021, 2022 and 2023, the employer's abundance is exempted from social lump sum payments when it supplements the employees' voluntary payments on savings plans.

This rate also applies when the employer makes a additional unilateral payment for the purpose of acquiring securities of the company or a related company.

Rate of 16%

The rate of 16% applies to payments (profit-sharing, participation, abundance or unilateral payment) to a Perco: titleContent or a Father: titleContent.

To do this, the 2 following conditions must be complied with:

  • The Perco is in managed management : the saver entrusts the management of the payments to the management business chosen by the company.
  • The held portfolio of units shall include at least 10% of securities which may be used in a share savings plan for the financing of small and medium-sized companies (PEA-SME).

General case

You must report every month the plate and the amount of the contribution to theUrssaf: titleContent via the Nominative Social Declaration (DSN).

Nominative Social Declaration (DSN)

Agricultural sector

You must declare the base and the amount of the contribution on the website of the MSA: titleContent via the Nominative Social Declaration (DSN).

MSA - Companies and farmers - DSN: online declaration

Please note

the amount of the social security package must appear on the salary voucher in line "Other contributions due by the employer".

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