Roche & Cie

2017 payroll: what’s new?

25 Oct 2016

On 1 January 2017, the french payroll should experience several changes.

Presentation of known changes.

The ceiling of the Social security upgraded

On 1 January 2017, the Social Security ceiling should be revalued by 1.6%. The monthly ceiling increases from € 3,218 to € 3,269 and the annual limit of € 38,616 to € 39,228.

These figures are subject to confirmation by decree in the coming weeks.

The fixed fee GMP

The minimum points guarantee (GMP) is a contribution that allows executives whose pay is below the social security ceiling (or slightly higher) to get at least 120 points for supplementary pension per year.

According to a recent circular issued by Agirc, the monthly amount of this fee would be fixed, with effect from 1 January 2017 to € 70.38 (against € 68.07 this year) or € 43.67 charged to the employer and € 26.71 at the expense of the employee.

As for the hinge annual salary below which the GMP plays, it will be known only when the social security ceiling will be published. For the record, it is fixed at € 3,549.24 per month in 2016.

The pension contribution rate up

Already increased by 0.10 point earlier this year, the rate of insurance premium based old age applicable on all of the employee’s remuneration would undergo a further increase on 1 January 2017. Thus, the employer’s share would increase from 1 , 85% to 1.90% and the salaries from 0.35% to 0.40%.

Accuracy: currently, there is no expected increase in the rate of the base pension contribution on the part of compensation not exceeding the monthly Social Security ceiling (€ 3,218 in 2016), a rate that is 15, 45% from 1 January 2016.

The promoted electronic payslip

Currently, the earnings statement may be submitted electronically to the employee only if the employer has previously received the agreement of the latter. This practice is very widespread because, according to the impact of the labor law study, only this dematerialization rate reached 15% in France against, for example, 95% in Germany and 73% in Britain.
Also, from 1 January 2017 and subject to the publication of the implementing decrees, the employer could convey to his employee a pay slip electronically without having to previously secure its agreement.

However, if the employee so requests, the employer shall give him a paper version.

Source: Les echos.