Under the Finance Act passed by France's new President, social security contributions will increase both in November 2012 and in January 2013, raising the cost of the employee for the employer and decreasing net salary paid.
· As of November 2012, the retirement contribution paid to the URSSAF (France’s social security body) will increase for the employer from 8.3% to 8.4% and for the employee from 6.65% to 6.75%.
· In January 2013, a second increase will bump up costs to employer to 8.4% to 8.45% and from 6.75% to 6.80% for the employee.
As noted in a previous update, as of August 2012, paid overtime is no longer exempted from personal income tax and, as of September, paid overtime is subject to social security contributions.
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