Overview

Capital Paris

Currency Euro (€) (EUR)

Date Format dd/mm/yyyy

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Taxes

Employer 13.00% - Health, Maternity, Disability, Death
0.30% - Autonomy Solidarity Contribution
8.55% (ceiling of 3,311 EUR) - Old Age Insurance
5.25% or 2.45% - Family Benefits
4.05% (celing of 13,244 EUR) - Unemployment
0.15% - AGS (Wage Guarentee Insurance)

Employee 6.9% (ceiling of 3,311 EUR) - Old Age Insurance
9.20% - Social Security Surcharge
0% - Up to 9,807
5.05% - 9,807 - 27,086
9.15% - 27,086 - 72,617
11.16% - 72,617 - 153,783
13.16% - 153,783 and up

Termination

Termination Process • Resignation: No specific labor code. Can be submitted verbally or written, however, it is advised to provide a written notice. A fixed duration of notice does not exist, but notice should always be given. Notice period is determined on contract, agreement, or practices by profession. • Mutual Termination: Employers and employees agree on termination conditions in permanent employment contracts. • Economic Dismissal: These are jobs cut due to economical or technological changes. • Individual Dismissal: A preliminary dismissal interview must be set up and take place. 2 days to a month after the meeting a letter of dismissal must be sent to the employee

Advance Notice • 1 month for employment between 6 months and 2 years. • 2 months for employment over 2 years. • 3 months for executives.

Severance Pay • Monthly average of last 12 months of employment • Average monthly earnings of all months preceding dismissal • One third of the last three months

Mandatory Benefits

Pension Fund As of January 1st, 2019, the Agric and Arrco have merged into one plan. Bracket 1: for salaries up to the social security ceiling. Employer - 4.72% Employee - 3.15% CEG (Overall balance contribution) Employer - 1.29% Employee - 0.86% Bracket 2: for salary between 1 and 8 times the social security ceiling. Employer - 12.95% Employee - 8.64% CEG (Overall balance contribution) Employer - 1.62% Employee - 1.08%

Social Security Employers contribute 47.45% of workers wages. The social security ceiling has been raised to 39,732 EUR annually (from 29,228 EUR), and 3,311 EUR monthly (from 3,269 EUR).

Health Insurance The universal healthcare system covers all residents through social security contributions and taxes. The universal system covers about 70%-80% of medical cost with the remainder being paid by supplementary private health insurances. These private health insurances are either paid out-of-pocket, or if employed, by their employer.

Disability/Life Insurance Disability - Social Security pays 50% of the salary until a ceiling (slice A = 3311 € for 2018) for a max of 3 years. After this period, once the indemnity is no longer 100%, Novalis completes the salary (on top of the Social Security) to min 75% and max 90% of the salary. The percentage is dependent on the number of children, a work or non-work related accident or maternity leave. For long term disability (after 3 years), employees are paid by Social Security. On top of this, Novalis pays a percentage of the salary. The payout percentage is dependent on the type of disability. In the event of death, beneficiaries receive a capital or a widowhood pension. This amount is calculated by the gross salary and different formulas that can be chosen (lump sum or lump sum + educational annuity).

Minimum Wage

General €10.03 per hour or €1,521.22 per month.

Working Hours

General Full time employment is considered 35 hours weekly.

Overtime Employees must not work more then 48 hours weekly, 44 hours per week during 12 consecutive weeks, and 10 hours a day.

VAT

General 20% standard rate.

Payment

Payroll Frequency Salaries are paid on monthly basis for work between the first to last day of the month. Paydays are at the end of each month.