Calculating net pay

[Mozman]

I have an interview for a job with a French company. If successful I will live in France and become tax resident. The salary for the job will be 22,000 Euros. My understanding is that the tax will be staged from nothing upto 14% with an additional 8% cotisations. Am I right and can anyone help estimate what my net income is likely to be. Any help or advice welcome.

[NormanH]

You can calculate your likely tax with a ready reckoner.

see: http://www.grouperf.com/calculettes/#s1  (  le simulateur d'IR)

 To do this you have to take into account such things as if you have a partner, children etc.

You probably don't want to give such information in an open forum, but without it it would be impossible for others to calculate your net income

As a simple example a single person earning 22000 would pay 1741€ of income tax. This is paid after a year,( income from 2011 is declared in May 2012, and paid in September October 2012)  but payments  can be staged.

Côtisations  are taken at source and cover pension, health unemployment etc, with the employer paying a larger par than the employee.  I can't tell you how much they wold be on 22,000 I'm afraid

[Sunday Driver]

Social security contributions deductable at source as a percentage of salary:

http://www.urssaf.fr/profil/salaries/baremes/baremes/taux_des_cotisations_du_regime_general_01.html

 

[NormanH]

Good to see you back SD.  I had the impression you were away...

[Sunday Driver]

Thanks, Norman.  The mother-in-law had a heart attack a couple of weeks ago and we had to go across and sort things out. 

Bad news is the old dragon has made a full recovery.....[:-))]

 

[Gardian]

OK Norman - I'll ask.  Who's your avatar?  Lewie Seize? An ancestor?  Or is it you? 

[idun]

Allow approximately 20% of your income as standard deductions, this will cover pensions and social security and  the CRDS and CSG.

 

http://www.cleiss.fr/docs/regimes/regime_francea2.html

 

Also you will need to have a mutualist, depending on the size of the company you work for they may have one and will debit your salary. That could be what from 50-140€ a month????

 

So of your 22k€ p a  you will have approx 22000 less 20% = 17600€ divided by 12 =1466.66€ per month less your mutualist and perhaps less any meals provided at work.  Then you will have your income tax to work out. This will really depend on if you are married or single or have kids. Could be a further 800odd euros p a to pay if single, or nothing if married and your spouse isn't working.

EDIT, I have just looked at a couple of web sites salaire brut net and both say that on 1833€ per month then you'll pick up 1411€. NB the tax and mutualist etc still have to come off this figure.

 

http://www3.finances.gouv.fr/calcul_impot/2011/simplifie/index.htm    Try it on here.

 

And watch out your 22k pa may be divided by 13. Sometimes it is.

 

 

 

 

[NormanH]

John Locke

Author of 'An Essay on Human Understanding'

I used to be conceited, but now I'm just perfect...

[Mozman]

Quite different from Norman's post. Income tax appears to be 1741 euros based on scale from 0% to 14%. However I thought social charges are 8% of the gross, this would equate to 1760 euros. This would leave a net of 18500 euros. This provides 1541 per month. What is the mutual and what is it for?

[idun]

I'm sorry I have no idea who has told you to allow 8% of your gross income in social security stoppages, but they are not that low and never have been. I'll say 20% as an average, give or take, but the web sites say more.

I gave links that show what you pay. My husband's were 21.75% of his salary including the CRDS CGS etc. Then the mutualist and then income tax which is paid apart, depending on your circumstances.

Depending on your marital status and children, then your tax could be from nothing to  90€ a month.

 

Please remember that the employer pays a fortune in social security payments as well as you do so on a salary of 22k€ will actually have to fork out well over 30K€ to employ you.

If you are single I reckon that you'll end up with approx 1300€ a month after your tax and mutualist payments and it could even be a little less than that. And my son would be delighted with that!!

[NormanH]

a Mutuelle pays the part of your health expenses not covered by the state system. The % differs according to whether it is a medicine, a consultation, a procedure etc, but most of them are not completely covered by the part of your charges which go to pay fo health.

As a rule of thumb trust French official sites (such as quoted by SD and idun  above) rather than ideas picked up either from  English language sites which might be trying to sell you property and so give you a rosy view of life here, or a rough idea you have in your head

 

[idun]

I don't understand your figures either Mozman, I've just looked at them again. Yes, tax is based on net income, but that is net of social security payments only. 22000 less say 20% = 17600 divided by 12 is 1466 per month, but I do believe that the SS payments are actually more than that.

Mutalists, are top up health care cover as the state only pays a percentage towards your healthcare unless you are very gravely ill and then they have catagories which are covered at a 100%. Some companies have mutualists run by their comite d'entreprise and all french companies with more than a certain number of employees have to have a comite d'entreprise.

You have lots of questions to ask your prospective employer haven't you. Also, ask if they pay over 12 or 13 months, this happens in France.