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Starting in 2018, employee contributions to the general social contribution (CSG) fund are to be increased while employee contributions for health and unemployment insurance in France are to be reduced and then eliminated, a news release from the French Prime Minister said August 23, 2017. The measure is to take place in two stages in 2018.
Effective for 2018, employee contributions to the CSG fund are to be increased by 1.7 percent at a date that is to be set by the minister of action and public accounts in fall 2017, the news release said. Effective 2017, the CSG fund is levied at a 7.5 percent rate on total earnings minus 1.75 percent. The increase in the employee contribution rate for the CSG fund is intended to offset the reduction in employee contributions for health and unemployment insurance, the government news release said.
Effective January 1, 2018, the employee contribution rates for health insurance and unemployment insurance are to be reduced to rates that are to be announced when bills financing social security are presented later this year, the news release said. Currently, the employee contribution rate for health insurance is 0.75 percent and the employee contribution rate for unemployment insurance is 2.4 percent with a maximum monthly contribution of 13,076 euros.
Following the January 1, 2018, reductions in the employee contributions for health and unemployment insurance, the contributions are to be abolished in the fall of 2018 at a date to be specified when bills financing social security for 2018 are presented, the news release said.
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