As always, with the news come a few changes. Here are the ones related to the payroll.
Minimum wage increase
Avery year the minimum hourly wage (SMIC in French) is updated. With the presidential election in 2017 we expected the government to increase the SMIC at a higher rate than the inflation. We were happily disappointed.
The minimum hourly wage will increase of 0.93% on the 1st of January 2017 putting it at 9,76€ (it was 9,67€ in 2016).
For a full-time employee (35 hours per week) the monthly gross salary will then be of 1480€. The net will be of 1153€.
Visit our database for more information about the SMIC: http://www.frenchpayrollexpert.fr/database/minimum-wage-smic/
Social security ceiling increase
In the same way than the minimum wage salary the social security ceiling increases every year. In 2017 it will be of:
- 39 228€ for a year (38 616€ in 2016)
- 3 269€ for a month (3 218€ in 2016)
- 180€ per day (177€ in 2016)
- 24€ per hour (identical in 2016)
Some contribution rate increases when the employee’s salary exceeds the social security ceiling. Other contributions are limited to the social security ceiling. All in all, this increase is of a limited impact for most people.
Visit our database for more information about the social security ceiling: http://www.frenchpayrollexpert.fr/database/social-security-ceiling/
Retirement contribution increase
The retirement contribution paid to the URSSAF (social security) on the whole salary (not limited to the social security ceiling) will increase on the 1st of January. It will be of:
- 0,40% for the employee contribution (0,35% in 2016)
- 1,90% for the employer contribution (1,85% in 2016)
Transport contribution increase
Part of the public transportation program is financed by the payment of the transport contribution. This contribution is paid by companies employing at least 11 people. This contribution is paid on the whole salary. It’s rate will depend on the region were you company’s establishment is located.
In Paris the contributions rate will increase from 2,85% to 2,95% on the 1st of January.
You can find you contribution rate on this web site: https://www.urssaf.fr/portail/home/taux-et-baremes/versement-transport.html
Unemployment contribution decrease
The AGS is one of the unemployment contribution paid by the employer. In 2016 its rate was of 0,25% of the salary limited to 4 time de social security ceiling.
In 2017 this rate will decrease to 0,20%.
The DSN (“Déclaration Sociale Nominative” in French) is a global change in the declaration format.
This means that as of the 1st of January 2017, every payroll provider (in house, service provider or accountant) must provide the authorities with one (and only one) declaration.
This declaration will contain all the information about the month payroll.
The information will then be dispatch to all the social bodies to which the company is registered.
This system will replace all the monthly, quarterly and yearly declarations.
For the company, it will not change a thing. The rate will be the same and the payment schedule will be the same.
However, once a DSN is sent (and accepted) the company cannot modify it. This means that you cannot go back on a payroll.
We advise that you make sure you send a formal OK to your provider before he sent the DSN.
Also, every sick leave will be declared with the DSN. However, it must be done within 5 days after the employer has been informed of the leave. The sick leave information can no longer be provided to your service provider with the monthly payroll data.
The DSN is a big step to simplify the payroll process. However, we will all need to adapt and change our process and time line. We recommend you contact your payroll provider to setup this new process.
Somme other change for the year 2017 are note related to the payroll. Here are a few of them:
Stamp price increase
The price the stamp will increase in 2017. For a normal letter, it will go from 0,80€ to 0,85€.
Cigarette neutral packaging
The neutral packaging for cigarettes will now be mandatory.
When a traffic offense is committed by a company car, the employer will now have to obligation to inform the authorities of who was driving the car when the offense took place.
Public services: https://www.service-public.fr/particuliers/actualites/A11229?xtor=RSS-111
TISSOT editions: http://www.editions-tissot.fr/actualite/droit-du-travail-article.aspx?secteur=PME&id_art=8077&titre=Cotisation+d%E2%80%99assurance+vieillesse+2017
French Payroll Expert