Income Support Policy in France

Income Support Policy in France - Income Support Policy in...

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Income Support Policy in France
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Income Structure and Social Transfers Gap between earnings and income Larger social and fiscal wedge Social Contributions Employers and employees pay social contributions . The amount of these contributions depends on the gross wages. On average a full-time worker pays 13.2 percent contribution, and employers pay 39 percent contribution. This 39 percentage contribution by employers is actually a break due to an agreement with workers on a 35 hour work week. The percentage sans-agreement for employers is 41.5 percent. The rate of contribution decreases as gross wage passes the average gross wages. This became the system by which to fund health insurance; the higher the income the lower the contribution rate. After institution of this policy, as contributions became more proportional the policy was also directed to pensions (unemployment insurance). The employers’ contribution rate on low wages has become progressive in order to deter unemployment in less qualified workers. At minimum wage the employers’ contribution level is 15.5 percent while the employee rate is still 13.2 percent.
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Income Support Policy in France - Income Support Policy in...

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