Public sector workers to miss out on cuts in social security contributions Public sector workers to miss out on cuts in social security contributions

Public sector workers to miss out on cuts in social security contributions
26 Jan 2018

Although France’s President Emmanuel Macron has, as promised, cut sickness and unemployment contributions, only private sector workers will benefit.

Public sector employees will not only miss out on the reduction in contributions, but they will further lose out due to a 1.7 percentage point rise in payments into the CSG social security fund. This levy, which is deducted from salaries and helps to fund France's social security system, is the largest of several social charge taxes. The change will come into effect in January 2018.

While private sector workers will also be affected by the rise in the CSG, its impact will be outweighed by the gain they receive due to the cut in sickness and unemployment contributions.

To make matters worse for public sector workers though, their pay frozen has also been frozen for 2018. The government has promised that they will be compensated, but has yet to decide how. Discussions are continuing.

 

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

Although France’s President Emmanuel Macron has, as promised, cut sickness and unemployment contributions, only private sector workers will benefit.

Public sector employees will not only miss out on the reduction in contributions, but they will further lose out due to a 1.7 percentage point rise in payments into the CSG social security fund. This levy, which is deducted from salaries and helps to fund France's social security system, is the largest of several social charge taxes. The change will come into effect in January 2018.

While private sector workers will also be affected by the rise in the CSG, its impact will be outweighed by the gain they receive due to the cut in sickness and unemployment contributions.

To make matters worse for public sector workers though, their pay frozen has also been frozen for 2018. The government has promised that they will be compensated, but has yet to decide how. Discussions are continuing.

 

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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