New unemployment contribution

unemployment rate increase

Some elements of the new labor law are active as of the 1st of October.

One of these changes is an increase in the unemployment contributions.

Before the new law

Before October, there were 2 unemployment contributions to be paid for all employees.

The first one was of 6.40% of the gross salary up to 4 times the social security ceiling (156 912€ for 2017). The split employer/employee of this contribution was 62.5% paid by the employer 37.5% paid by the employee.

The second one was of 0.15% of the same slice of the gross salary. This contribution was paid 100% by the employer.

These contributions remain.

For short-term contracts there was one addition contribution.

This contribution was 3.00% of the gross salary up to 4 times the social security ceiling (156 912€ for 2017) for a contract of less than 1 month. This contribution was paid 100% by the employer.

For contract of between 1 and 3 months, this contribution was of 1.5% of the same slice of the gross salary. This contribution was paid 100% by the employer.

After the law

A new contribution is created for all employees.

The name is “Contribution Exceptionnelle Temporaire”. Which translates as exceptional temporary contribution.

The rate of this contribution is 0.05%. It is based on the gross salary up to 4 time the social security ceiling (156 912€ for 2017). This contribution was paid 100% by the employer.

An old contribution is canceled.

The 1.5% contribution for short-term contracts between 1 and 3 months is canceled.

In short

As of the 1st of October, the unemployment contributions are the following:

  1. 4% of the gross salary up to 4 times the social security ceiling. (2.4% for the employee and 4% for the employer)
  2. 15% of the gross salary up to 4 times the social security ceiling. (Fully paid by the employer)
  3. 05% of the gross salary up to 4 times the social security ceiling. (Fully paid by the employer)
  4. 3% of the gross salary up to 4 times the social security ceiling on short-term contracts not exceeding 1 month.

French Payroll Expert advice

It is not very common to have exceptional temporary contributions.

It appends once in 2001. A new exceptional temporary contribution was created for retirement benefits.

To this day, 16 years later this contribution is still active.

Don’t hold your breath.

 

French Payroll Expert


Source : https://www.urssaf.fr/portail/home/actualites/toute-lactualite-employeur/contributions-patronales-dassura.html