What is the extra cost of Social Security and other State and assimilated contributions ?
Social security contributions are levied on gross salaries at approximately 50% for the employer, and circa 20% for the employee. Thus on a gross salary of 100, the overall cost to the employer would be circa 150, whereas the net salary received by the employee would be circa 80. A separate general social security contribution is levied on all income at a rate of 7.5% in most cases, together with a social debt repayment tax is due on all income at the rate of 0.5%. These contributions are included in social charges on salaries, but can apply separately to severance packages for instance. A specific local business tax, known in French as the Taxe Professionnelle (T.P.), is due by all French business entities, be they companies or individual undertakings. The calculation thereof is based upon the annual rental value of their tangible assets linked to a proportionate amount of the overall salary bill, (although the component based on salaries is gradually disappearing).The average annual
