Furthermore,
Csg rate will increase 5:
The general social contribution (CSG). Consequently, implemented by the 1991 finance law, plays an important role in the financing of Social Security in France. However, It is deducted from all activity income. In addition, heritage, financial investments and even replacement income such as unemployment benefits, daily allowances and retirement pensions. Similarly, This tax measure has notable repercussions for French retirees, especially with the possible upcoming increase in the CSG rate.
How the CSG is distributed. Moreover, regulated – Csg rate will increase 5
CSG contributions are mainly used to finance health insurance, family benefits and pensions via the Old Age Solidarity Fund (FSV). This levy applies to all natural persons whose tax domicile is in France. who are affiliated with a compulsory health insurance scheme. Régied by articles L136-1. following of the Social Security Code, the CSG is deducted from all pensions by pension funds, whether for basic retirement or csg rate will increase 5 for additional pension.
The rate applied to these pensions depends on the reference tax income (RFR). is available in four levels:
- zero (exemption)
- reduced (3.8 %)
- median (6.6 %)
- normal (8,3 %)
The exemptions and limits of the RFR – Csg rate will increase 5
Some pensions automatically benefit from specific exemptions. Thus, the fighter’s pensions and the mutualists of the veterans are exempt up to a ceiling fixed at € 1,954 for 2023. In addition, the allowances for widowhood or for solidarity to the elderly are not subject to the CSG. In addition, the exemption linked to the RFR is granted when the latter is very modest. For 2025. this ceiling is set at € 12,817 for a single person without children (1 tax share) and € 19,661 for a couple without children (2 tax shares).
Each year, these thresholds are reassessed according to the evolution of consumer prices, measured two years ago. csg rate will increase 5 In an inter -ministerial letter dated December 4, 2024, it was announced that these ceilings would be raised by 4.8 % for 2025.
How is the calculation and other contributions
The calculation of the CSG is based on the family quotient. Part of this contribution is tax deductible: the reduced rate (3.8 %) is fully deductible, while for median (4.2 %) and normal (5.9 %) rates, only one part is. Other social security contributions include the CRDS (contribution to the reimbursement of social debt) with a fixed. not deductible rate of 0.5 %, as well as the CASA, set at 0.3 % and also not deductible.
Note that if a retiree is exempt from CSG, it is generally also for the CRDS. On the other hand, the CASA applies as soon as the normal or median rate of CSG is retained.
What happens if the rate increases?
The government is csg rate will increase 5 currently planning to raise the normal CSG rate for retirees, which would drop from 8.3 % to 9.2 % – an increase that would not be negligible. This measure would affect some 5 million French retirees. or around 30 % of them according to INSEE, especially those already subject to the normal rate.
To illustrate this, imagine a retiree who receives a gross monthly pension of 2,500 euros. Currently, it pays around 207.5 euros from CSG. but with the increase, this amount would increase to 230 euros, which would represent almost 270 euros additional over the year.
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