Decrease of the AGS contribution.

AGS contribution

On the 1st of January the AGS contribution decrease from 0,30% to 0,25%

The AGS contribution is part of the unemployment contributions paid to the URSSAF. This contribution is financing the salary guarantee scheme.

The AGS contribution decrease to 0,25%

When an employer is unable to pay the salaries of his employees, the employees can claim indemnity to the AGS. The AGs then pays all or part of the salary to the employees. This scheme is financed by the AGS contributions paid by the employers.

This contribution is based on the gross salary limited to 4 social security ceiling.

Public services:
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Find out more on the social contributions in our database accessible on our site for registered members.

Database Database

Increase of the illness contribution.

illness contribution

On the 29th of December 2015, the decree n°2015-1852 was published. This decree increases the employer contribution rate for illness from 12,80% to 12,84%.

The increase of the illness contribution is compensated by the decrease of the AT contribution.

This increase is compensated by a decreased of the work related accident contribution (called AT cotnribution). The average net rate for this contribution is now of 2,38%. In 2015 it was of 2,44%.

The employee contribution rate for illness remains 0,75%.

The illness contribution is based on the full salary and is part of the social contributions paid to the URSSAF.

RF Paye:


New GMP retirement setup for 2016

GMP retirement

The GMP retirement is the minimum retirement contribution for executive officers (“cadres”). The GMP is based on the equivalent of a virtual minimum salary. This minimum salary is only used for the calculation of the retirement contributions and the retirement benefits.

The GMP retirement is based on a monthly salary of 3 549,24 €

On the 1st of January the GMP retirement contributions will be of 816,84 €. It will be based on a virtual minimum salary of 42 590,88 € per year (3 549,24 € per month).

The GMP is the “Garantie Minimum de Point” which translate as Minimum Retirement Benefit.



New social security ceiling for 2016

Social security ceiling


The new social security ceiling for 2016 has been published. It increases of 1,514 % to 3 218€ per month.

Reminder: It was of 3 170 € in 2015.

In 2016 we have the following values:

Time preriodCeiling value
Year38 616 €
Quarter9 654 €
Month3 218 €
Fortnight1 609 €
Week743 €
Day177 €
Hour24 €

The new monthly social security ceiling is of 3 218 €

In 2015 it was:

Time preriodCeiling value
Year38 040 €
Quarter9 510 €
Month3 170 €
Fortnight1 585 €
Week732 €
Day174 €
Hour24 €

This ceiling is used to calculate the social contributions. Usually the health insurance contribution is a fix percentage of the ceiling.

It is also used as a reference for some of the social security benefits. It is the case for the retirement benefit and the disability pension.

RF Paye:

Find out more on the social security ceiling in our database accessible on our site for registered members.

Database Database

New lump sum professional expenses exoneration limit for 2016


The lump sums paid to the employee, by the employer, as reimbursement of professional expenses are exonerate from the social contributions. However, this exoneration is limited.

On the 1st of January, the limit of the exoneration is updated.

Lump sum lunch expenses:

Lunch in a restaurant = 18,30€

Lunch outside of the work place but not in a restaurant = 8,90€

Lunch in the work place = 6,30€

Lump sum mobility expenses:

Temporary housing expenses = 72,60€ per day (limited to 9 months)

Moving in a new housing = 1 454,60€ + 121,20€ per child (limited to 1 818,20€)

Lump sum for large travel in France:

Lump sum for large travel in France
For lunch
Housing + breakfast : Paris, 92, 93, 94
Housing + breakfast : other county
3 first months
18,30 €
65,30 €
48,50 €
After 3 months up to 2 years (- 15 %)
15,60 €
55,50 €
41,20 €
After 2 years up to 6 years (- 30 %)
12,80 €
45,70 €
34,00 €

Lump sum for travel abroad:

The exoneration limit for lump sum expenses when an employee travel abroad is still the value of the Groupe 1 of the indemnity paid to state employee. The amount can be find on the following web site:



Penalties for late payment

late payment

When a company doesn’t pay its retirement contributions in due time, the retirement company is untitled to demand payment of penalties for late payment.

The calculation of the penalties is a legal one. It is of:

Number of months of delay * legal rate * overdue contribution amount

The penalty rate for late payment is unchanged in 2016

In 2016 the legal rate provided by the AGIRC and ARRCO administration is unchanged. It remains 0,60%. The minimum amount of penalties is of 90,00€.

RF Paye:


The minimum wage increases of 0.6% to 9,67 €

Minimum wage increases

As of the 1st of January 2016 the legal hourly minimum wage “SMIC” will increase to 9,67€. In 2015 the SMIC was of 9,61 € per hour.

This increase is the minimum legal increase. The legal increase is based on the inflation rate.

Minimum wage of 9,67€ per hour in 2016

The SMIC for employees under 18 or 17 years old also increases on the 1st of January.

A collective bargaining agreement can now indicate a minimum salary inferior to the SMIC. In this case the employer as the obligation to increase the employee’s salary to the SMIC.

For 2016 the SMIC is the following:

 Over 18 years oldOver 17 years oldUnder 17 years old
Hourly wage9,67 €8,71 €7,74 €
Monthly wage1 466,62 €1321.05 €1173.93 €
Yearly wage17 599.44 €15 852,55 €14 087,11 €

In 2015 is was:

 Over 18 years oldOver 17 years oldUnder 17 years old
Hourly wage9,61 €8,65 €7,69 €
Monthly wage1 457,52 €1311,92 €1166,32 €
Yearly wage17 490,20 €15 743,00 €13 995,80 €

Public services:

Find out more on the minimum wage “SMIC” in our database accessible on our site for registered members.

Database Database

Retirement Contribution in 2016

retirement contribution

On the 1st of January the retirement contribution will increase.

Here is the new retirement contribution rate:

Retirement Contribution
Employee ContributionEmployer Contribution
Based on gross salary20150,30 %1,80 %
20160,35 %1,85 %
As of 20170,40 %1,90 %
Based on slice A of the salary20156,85 %8,50 %
As of 20166,90 %8,55 %

This increase is not a surprise as it was planned on December 2014.

On the 1st of January 2017 the retirement contribution will once more increase.

RF Paye :


Gifts are exempted from social contributions


During the Christmas period, employers may give gifts and vouchers to their employees.

These vouchers are exempted from social contributions. However, this exemption is limited to 5% of the social security ceiling (159€ in 2015).

This exemption is per employee, per children under 17 years old per civil year.

Gifts and vouchers are not limited to the Christmas period

The exemption for social contributions of the vouchers is not limited to the year-end period. It is also valid for special events such as weddings, birth of a child, retirement, mother’s and father’s day, Sainte-Catherine, Saint-Nicolas and new school year beginning.

Public services: