Friday, January 18, 2019

According to the salary level, the net salary is taxed from 47% to 150%

The payroll tax that you do not see.


By Jean-Baptiste Boone.
An article from Iref-Europe


Because of the tax and social charges, the French receive only half of the salary they could claim. The state taxes 88% of wages at the level of the median income.


How much is the employer willing to offer you in exchange for your production? In theory, he can hire you as long as you bring in 1 euro more than you cost him. For the employer, no matter what you perceive, what matters is what he pays. All of these taxes, contributions or taxes - all denominations for a single purpose - are deducted from what you have created as a value before you can dispose of your net income. In other words, for a salary x that the employee accepts in exchange for his work, the employer is forced to add mandatory taxes. In addition, the State levies on this net income a tax on income z. The direct deduction rate on the salary x is equal to (y + z) / x

What proportion does the state and affiliates apply to this amount before the salary can be titled net Taxes and charges, and it can be used by the employee at his pleasure, for example to make purchases that will still bear VAT in addition and still.



Source: www.urssaf.fr - contribution estimator. 2074 euros corresponds to the average salary net of tax (2250 euros net before tax)


Depending on its level, the net salary is taxed from 40% to 170%. This is the real level of taxation of wages in France. At the level of the average salary (2,250 euros net before tax), it is 88%. On average, the employee only receives about half of what it cost the employer.


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