If you have just started working for a French employer, you may be a little confused when you receive your first salary slip. This is no simple pay slip and should really come with its own instruction manual. Here you’ll find some insight into those strange deductions and ambiguous terms.
1. Layout Of Your #Payslip
Let’s start with the layout of your salary slip. There are so many sections, you might be sent into a blind panic before you even start to read the details. The good news is that most of these sections are clearly explained or are self explanatory.
● The heading of your salary slip will include the name of your employer, their address, the date and any specific administrative numbers relating to your employer.
● You will then see a number of columns below the heading that list your hours worked, your net income and then the various taxes and other deductions that have been taken from your gross income.
● And at the very bottom of the salary slip will be a summary showing the sums you have paid in deductions and tax.
2. #Health Schemes And #Insurance
In many countries around the world you will be expected to make a contribution to a national health scheme and other insurances. France is no exception. Depending on your particular circumstances, you could see the following details listed on your slip:
● Veuvage - Insurance for widows and widowers paid by the employee.
● Maladie- Your contribution to the National Health insurance scheme.
● Accident du travail - This is insurance that is paid by the employer and covers accidents at work.
3. #Retirement And #Pension Contributions
Preparing for retirement may not be something you are thinking of if you are young and have just started work, but you can never start too early. Depending on whether you have opted into a pension scheme with your employer, you pay see the following on your salary slip:
● Vieillesse - This is paid by both the employee and the employer but not usually in the same amounts. These contributions will be used towards the general retirement fund.
4. #Unemployment Insurance
● ASSEDIC - this unemployment insurance is paid for by your employer.
● FNGS (Fonds National de Garantie des Salaires) - This type of insurance covers the employee should the employer stop paying them and is paid for by the employer.
● AGS (L’Assurance Générale des Salaires) - Should the company go out of business, this insurance protects the employee. The employer picks up the bill for this one too.
● APEC (l’Association Pour l’Emploi des Cadres) - This is unemployment insurance for managers and is paid by your employer.
Of course, you cannot have a blog post explaining a #Payslip without mentioning taxes. There are a number of tax deductions and additions you may find on your wages slip and it is important to understand each of them.
● Impôt sur le revenue - Quite simply, this is income tax.
● FNAL - Housing tax - this is a common allowance given to families to put towards rent payments
● CSG - This tax is paid towards the general welfare fund.
6. Other Entries You May See On Your #SalarySlip
● Prime transport - If you use a company car or another commercial vehicle, your employer may pay an allowance. This is non-taxable.
● Frais repas - These are payments from your employer for the use of the company restaurant.
7. How To Get The Most From Your #French #Salary
If you need to send money back home or transfer money to a bank account outside of France, it is important to look into the best money transfer deals. By using an FCA authorized foreign currency specialist instead of your high street bank, you can make your money go so much further.
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