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Reduction of Social Cost

Home > French Tax Law | Published 2010-11-05

THE INDIVIDUALS CONCERNED

  • Executive managers : chairmen and managing directors of public companies, wage-earning chairmen of certain public companies, minority or majority managers of private companies ;
  • An organization of employees, for example: sales force; senior management;
  • Independent workers;
  • Any employee or category of employees whom you wish to favor.

GOALS

Reduce the rate of social security costs for employees by up to one third of the current rates, meaning from 60% to 20%. Example: for a specific category of employees which annually cost the company €136,000, the reduction of social security costs would amount to €26,900 per year.

In reducing these costs, you can maintain social security coverage for:

  • Illness / Maternity: benefits remain the same.
  • Foresight: Benefits are practically identical.
  • Retirement: Benefits from the mandatory pension schemes are theoretically diminished; the profit made on the social contributions will allow you to pay an annual contribution to corresponding pension schemes, which are tax-deductible.

MECHANISMS

  • Changing social status within the Company
  • Application of tax, labor and business law methods that the law firm of Gerard PICOVSCHI has mastered.

This article is available online for public information purposes. It is updated regularly, as needed. Due to the constant evolution of the laws and the legal system, we cannot guarantee that the information in this article is still applicable. We invite you to contact us with any legal questions or concerns you have regarding this topic at +33 1 56 79 11 00. In no way can this firm be held liable for articles that contain inaccuracies or are now out of date.

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