Levied on their gross salary, social contributions are both to employers and employees’ benefits. Indeed, the employees’ contributions are extracted from their salary by the employer in order to pay them to the collection agencies. The employer therefore deducts the employee and employer contributions from the employees’ gross salary. The contributions or social charges are used to finance social charges such as pension, provident fund, etc. The employers’ contributions include the social security contributions that you will discover in this article.
When we talk about social contributions, we are talking about the part of an employee’s remuneration that is destined to be financed in relation to the health sector. The term “employer’s social contribution” refers to the contributions paid by the employer. In addition, employee social security contributions or the employee share of contributions are the contributions made by employees, also paid by the employer. In general, contributions are intended to finance a social benefit, but they can also be used to cover risks in the future. Besides, they can be used to cover various tax expenses or for personal training.
What are social security contributions used for?
That’s a good question, what are social contributions for? In fact, social contributions, as mentioned, can be used for any kind of intervention, especially medical. As social benefits, they can be used for aging and retirement; in cases of illness or maternity; an emergency within the family of the employee or the employer; professional unemployment; personal training, etc. In fact, the amounts deducted from the salary are distributed to each of the Social Security funds by the URSSAF (the Organizations for the payment of social security and family benefit contributions) for the different interventions.
In reality, the employer does not only pay the contributions of the employees, but there are also contributions that are intended for the employer. The employer’s contributions are the following: family allowance contributions, which are intended for the benefits paid by the family allowance fund, the autonomy solidarity contribution for solidarity and autonomy, and work accident contributions. There are also various contributions and payments to be made to the national housing assistance fund as well as the transport payment for employers with more than 9 employees.