Everything you need to know about your pay slip

When you receive your pay slip, the first thing that interests you is the amount you earned as a result of your professional activity during the previous month. We are much less interested in the other information on our pay slip because it may seem complicated and does not really speak to us

How to understand your pay slip without getting lost in all these figures?

First, in order to obtain the net salary, you must look at the figure in the “Super Gross Salary” box. The super gross salary is the money that your employer actually pays each month to pay for the work of its employee.

The gross salary is the basis of the fixed remuneration previously established at the time of signing the employment contract. It is obtained as follows:

Gross salary = Super Gross salary – Social contributions paid by the employer*
*Also known as employer contributions.

What is the purpose of employer contributions?

Employer contributions are used to finance:

  • The four branches of social security: Family/ Work accident or occupational disease / Sickness / Old age.
  • UNEDIC, the National Union for Employment in Industry and Commerce, which is responsible for managing unemployment insurance.
  • The FNAL, the National Housing Assistance Fund.
  • Supplementary pension plans.

Net salary calculation :

The net salary, the amount you actually receive at the end of each month, is obtained as follows:

Net salary = Gross salary – Social contributions paid by the employee* – taxes & duties

*Also known as employee contributions.

What is the purpose of employee contributions?

Employee contributions are used to fund:

  • Two branches of social security: Sickness and old age.
  • Supplementary pension plans.

In general, employee contributions are lower than employer contributions.

What about taxes and duties?

Taxes and duties, on the other hand, represent the CSG (the Generalised Social Contribution) and the CRDS (the Contribution to the Repayment of the Social Debt) which contribute to the financing of social protection.

How is the net taxable salary obtained?

pay slipThe net taxable salary, which serves as the basis for calculating income tax, is obtained by adding to the net salary a portion of the CSG and CRDS that has already been paid in advance by the employee.

Indeed, part of these two taxes is subject to income tax. These are referred to as non-deductible CSG and CRDS. This explains why the net taxable salary is more important than the net salary.

This article will have enabled you to understand your salary slip from now on. To learn more about the different forms of investment, consult our special investment file.