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Calculating how much an employee costs
Thread poster: veratek

veratek
Brazil
Local time: 10:44
French to English
+ ...
Sep 22, 2008

Hi,
I would like to have an approximate but good idea of how much an employee costs for a French company compared to their brute salary.

Just to simplify the math calculation, if an employee's salary were 1000 Euros, would their employer have to pay approximately 50% (500€) of the brute salary for all charges/taxes due in addition to the 1000 € of the brute salary?

Regards,
Vera


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Alexandra Goldburt
Local time: 06:44
English to Russian
+ ...
In USA Sep 23, 2008

Well, I don't know about France, but this is the case for the USA:

*add 7.5% - one half of employee's social security taxes (the employee pays the other half);

*in California, add approx. 1-2% for state disability insurance;

*again in California, there is workers compensation insurance - rates depend on employee's occupation;

*plus, you have to pay the employee while his is on vacation (in USA, it's only 1 week for the first year of service - outrageous, of course, when you are an employee yourself, but only reasonable from the employer's point of view!)

*plus, paid legal holiday - I think 10 a year, when the employee is not working, but you have to pay anyway;

* very possible, sick days and health insurance.

Quite costly, as you can see!

I would really love it if people from Europe and other parts of the world answer this question, to have a comparison.


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Sheila Wilson  Identity Verified
Spain
Local time: 14:44
Member (2007)
English
+ ...
I think you're spot on Sep 23, 2008

I did a job for a company a while ago (training rather than translation) that had to be as an employee for contractual reasons.

They said it was impossible for them to pay my normal rate (I'd already been working for them as a freelancer) as they had to pay an additional 50% in charges. However, in good French style we then came to an arrangement that was probably more or less legal and paid me exactly the same!

My salary slips did indeed back up their claim, detailing enormous amounts paid to the state for every reason on earth.


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Samuel Murray  Identity Verified
Netherlands
Local time: 15:44
Member (2006)
English to Afrikaans
+ ...
In my country Sep 23, 2008

vera-tech wrote:
Just to simplify the math calculation, if an employee's salary were 1000 Euros, would their employer have to pay approximately 50% (500€) of the brute salary for all charges/taxes due in addition to the 1000 € of the brute salary?


I have no idea how it works in France, but in my country, the gross salary (what you call the brute salary) is the entire amount owed by the company. The taxes come out of the gross salary -- they are not added to it. In my country, if your gross salary is EUR 1000 and the company pays 50% tax on behalf of the employee, the employee would take home EUR 500, not EUR 1000.


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Lori Cirefice  Identity Verified
France
Local time: 15:44
French to English
Closer to 40% Sep 23, 2008

Usually 40% is budgeted for the employer's portion, but that can vary a bit depending on whether or not you have the réduction Fillon, any réduction loi Tepa, the taux d'accident de travail that can vary ...

I just had a look at my latest payslip, and it's 34% exactly, but my employer is getting a réduction loi Tepa as I work 39 hours instead of 35.

A friend pays his temp employees with CESU, and he noticed that the rate is actually higher than a normal payslip (not sure why - but I remember him complaining that it turned out to be more expensive than what he had budgeted for).

If you plan on 50%, you won't have any bad surprises, but it should be much closer to 40%.


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xxxNMR
France
Local time: 15:44
French to Dutch
+ ...
Agree with 40% Sep 23, 2008

For a € 1,400 salary, the employee takes home € 1,100, so the employees' social security part of this salary is about € 300, but in addition the employers' part is about € 570 (40%). Therefore, the total cost for the company is about € 1,670.

Please note that the € 1,100 is subject to income tax.


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