Your salary may drop from January 2025 for these reasons

Your salary may drop from January 2025 for these reasons
Your salary may drop from January 2025 for these reasons

The start of the year promises to be difficult for French employees. Between persistent inflation and new regulatory changes, the purchasing power of workers will be put to the test from January 2025. These changes will not be trivial since they will directly affect the wallets of the French. Millions of employees will see their net salary decrease due to three major changes to their pay slip.

The increase in mutual contributions weighs on salaries

The first bad news concerns compulsory complementary health insurance. Mutual insurance companies have announced an average increase in their prices of 6% for 2025. This significant increase will have a direct impact on the net salary of employees in the private sector. Indeed, the law requires companies to cover at least 50% of the cost of mutual insurance, the rest being directly deducted from the gross salary of employees.

Concretely, the “Compulsory health supplement” line on the pay slips will display a higher amount in the “Employee share/contribution” column. This increase will automatically result in a reduction in net salary. The date of application of this increase will depend on the renewal of each company’s mutual insurance contract. If the employer already covers more than 50% of the contribution, its share will also increase, but without additional impact on employees’ salaries.

Public transport users particularly affected

The second major change concerns the reimbursement of transport costs. From January 1, 2025, employers will no longer be able to reimburse more than 50% of their employees’ public transport tickets.. This legislative change ends the possibility that certain companies had of covering up to 75% of these costs.

This new restriction comes in an already tense context, with the recent increase in the price of transport subscriptions. The Navigo pass is now set at 88.80 euros. Employees who until now benefited from a 75% reimbursement will therefore see their personal contribution increase significantly. For a monthly subscription, the difference can represent several hundred euros per year. This measure will particularly affect workers in large cities, where the use of public transport is more widespread.

The withholding tax rate in question

The third element that could negatively impact salaries concerns withholding tax. Employees who have changed their withholding rate in 2024 must be particularly vigilant. Indeed, These custom changes only apply until December 31 of the current year.

From January 1, 2025, the rate automatically calculated by the tax administration will take over. This rate may be higher or lower than that applied in December 2024, depending on the taxpayer’s tax situation.. The employees concerned will therefore have to carefully check their first pay slip of the year to assess the impact of this change on their net salary.

  • Mutual insurance increases on average by 6%, mechanically reducing net salary
  • Public transport reimbursement is capped at 50% instead of 75%
  • The withholding tax rate automatically returns to the rate calculated by taxes, potentially higher

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