On principle, every penny you give to your French employee will be treated as a salary. Meaning: supporting the social contributions that come with it.
2 types of social contributions:
- the one "paid" by the employee: would be deducted from his gross salary ("brut").
Gross salary - employee's social contributions = net salary before income tax
Here, depending on the gross, it would be roughly 20 to 24%.
- the one paid by the employer: on top of the gross salary.
Gross salary + employer's contributions = cost to the company
Are you ready to see the figures?Again, the percentage is not always the same and depends on the gross salary: from 24% to 45%!
What does this mean?
As crazy as it may sound, there is a ratio of x1.5 to x2 between the net salary (before income tax) and the total cost to the company.Thankfully, there are several ways no to treat every penny as a salary.👌In France, we like to have “an exception to every rule” We'll see them later!
At least, do you know what the nice counterpart will be? Working with French guys is a truly amazing experience!
