21 February 2023
Impact: High
Summary
In this update, we summarise the main French social security updates to be considered from a payroll perspective, effective from January 2023.
The Detail
1. The legal minimum wage in France (the SMIC) increased from €11.07 to €11.27 gross per hour, effective from 1 January 2023.
When a Collective Bargaining Agreement applies, a more favourable conventional minimum wage may apply in priority, only if it is higher than the SMIC.
2. The monthly social security ceiling (PMSS), used to calculate social security contributions on payroll and other social security benefits, increases from €3,428 to €3,666 effective from 1 January 2023.
While usually updated on a yearly basis, it has not been increased since 2020.
3. Increase in the employer’s contribution for meal vouchers to €6.50 per ticket, as of January 2023.
Employer’s contributions towards financing meal vouchers must represent between 50% and 60% of the meal voucher total value, to be exempt from social security taxes, with the remaining cost being funded by the employee. This implies that the maximum exemption of the meal voucher is between €10.83 and €13.00, depending on the employee’s contribution level.
4. The meal benefit in kind is valued based on a lump-sum basis up to €5.50 gross per meal or €10.40 for two meals for 2023.
These amounts correspond to the provision of a meal to employees by their employer, which is valued on a lump sum basis. This does not apply in the Hotel-Café-Restaurant sector for which specific rules apply. For employees whose employer provides a canteen, company restaurant or inter-company restaurant, the benefit in kind can be disregarded when the employee’s participation is at least equal to 50% of the meal benefit in kind (i.e., €2.60 in 2023).
5. 2023 Housing benefit in kind valuation
When an employer, owner or tenant of a dwelling, makes it available to an employee free of charge, a taxable housing benefit in kind must be reported on payroll for employment tax withholdings purposes. Lump sum valuation of this benefit is available for 2023 (see below):
| Gross monthly remuneration | For one main room | Per main room (if several rooms) |
| Less than 1,833 € | 75.40 € | 40.40 € |
| from 1,833 € to 2,199.60 € | 88 € | 56.50 € |
| from 2,199.60 € to 2,566.20 € | 100.40 € | 75.40 € |
| from 2,566.20 € to 3,299.40 € | 113 € | 94.10 € |
| from 3,299.40 € to 4,032.60 € | 138.40 € | 119.30 € |
| From 4,032.60 € to 4,765.80 € | 163.30 € | 144.10 € |
| From 4,765.80 € to 5,499 € | 188.60 € | 175.70 € |
| Greater than 5,499 € | 213.50 € | 200.90 € |
6. Telework lump sum allowance for employees who carry out remote work from a distance using NICT (New Information and Communication Technology).
Effective from January 2023, and following the new pay regulations, the telework allowance is valued at €10.40 per day of telework during the week, limited to a maximum of €57.20 per month.
7. Scale of car mileage allowances when the employee is obliged to use his or her own vehicle for the home-work journey.
2022 figures have not yet been updated for 2023.
Contact us
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