Payroll
EN | What is the distribution of social charges in France
Why are the labour costs so high in France?
Come and join the french community! You will quickly understand where these contribution rates come from when we talk about Cost Sharing.
Do you know what are social charges covering in France ?🚨
Spoiler alert! 46% !! Yes, you read that right. In France, 46% of the them are allocated to the french state pension scheme!
🤯 Did you know that?If the rate of charges in France is quite high, it is because it corresponds to a system of mutualisation/social solidarity. [They are called ‘social charges’ because the money is used to finance various branches of our French social security system put in place after WW II]
So when you decide to hire an employee in France, do not rush into the supplementary pension or private health insurance... it is already included in the charges you will be paying!
⏳ You will have plenty of time to improve the conditions offered to your employees once your business is well established and flourishing.
In fact, there are many ways to offer benefits... but I will say no more here, stay tuned, you will see the details in our future posts.
I am sure you were convinced that France will compensate well when someone is on sick leave...
Last week, we saw what a sick leave was… it was just the beginning! Ready to go a step further? Let’s see how sick leave is compensated in France.
Dealing with a sick leave is a perfect example of the French vision of the work relation between an employee and a company.
