Social Security Ceiling 2023: After three years of stability, the social security ceiling is expected to be raised by 6.9%.
In 2020, 2021 and 2022 the monthly ceiling remained fixed to €3428. It is now expected to be increased by € 238 to €3666 as of 1 January 2023.
French social security ceiling 2023
Expected values as of 1 January 2023:
|Annual ceiling||€ 43 992|
|Quarterly ceiling||€ 10 998|
|Monthly ceiling||€ 3 666|
|Weekly ceiling||€ 846|
|Daily ceiling||€ 202|
|Hourly ceiling||€ 27|
Impacts of the French social security ceiling
The French social security ceiling is an important parameter with several impacts, not only on social contributions.
Some contributions are only calculated up to the social security ceiling. For instance, unemployment contributions are calculated on the gross salary, limited to 4 times the social security ceiling. As such, it has an important impact on the employer’s social contributions and payroll taxes.
It also serves as a reference of certain social welfare benefits. For instance, the daily allowances during a maternity leave paid by the CPAM are limited to the net salary corresponding to the social security ceiling.
Optional employee benefits
It is also a reference point for the calculation of the maximum exemption of certain employee benefits. For instance, if conditions are met, an exemption from social contributions and payroll taxes of up to 5% of the monthly social security ceiling can be applied for French gift vouchers. With the raised social security ceiling, the maximum exemption will increase from €171 in 2022 to €183 in 2023.
Minimum hourly rate of interns
Lastly, the French social security ceiling is a reference point for the minimum hourly rate of interns which is fixed to 15% of the hourly social security ceiling. The rate will increase from €3.90 per hour in 2022 to €4.05 in 2023.