Behind Belgium and Germany, France still appears in the world’s top 3 of labor taxation. According to the annual OECD study, the share of charges weighing on wages, income tax and employee and employer social contributions increased by 0.4%.
France always in the world’s top 3 labor taxation. The share of charges weighing on wages, income tax and employee and employer social security contributions increased by 0.4%, according to the OECD. For a bachelor without children at the average salary, 2,700 euros net, taxation weighs 47% of the amount paid by the employer.
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“It amounts to saying that half of the cost of total labor which is paid by the employer is deducted in its various forms of income taxes, employer social contributions and employee contributions,” explains Alexandre Georgieff, an OECD economist.
“France is the champion in terms of employer contributions”
Still in the case of a single employee at the average salary, the employer pays almost 5,400 euros, almost twice the net salary. If we look at the overall weight of loads on the cost of workforce, France is tied with Austria and Italy. It is only preceded by Belgium and Germany.
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But France is the champion of employers’ social contributions, which weigh 27% of the total cost of labor, against 21% in Austria and Belgium, and 17% in Germany. A record level which is explained by the financing structure of social protection.
“France is the champion in terms of employer contributions. Germany is with nivals of lower employer contributions, but this will be compensated by wage contributions. That being said, employer contributions are high in France because it is also linked to the structure of social security: retirement system, health insurance, unemployment insurance.”
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France devotes a third of its GDP to social expenditure, which undoubtedly explains the high level of contributions.
