Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Thanks for this afew.  Comparing your data and the article:
social contributions on the businessperson's salary may well reach 60+%
A French company must pay about 40 percent of an employee's salary in labor taxes, one of the highest rates among OECD countries, he said.
These two comments are consistent, obviously, if the rate is either higher for the highly paid, or higher for the lower paid.  Do you happen to know, does the rate go up for higher paid employees, or (as in the US with social security where it is only taxed up to a certain level--I believe 6.25% up to something like $90,000) does the rate effectively go down as it relates to the social contribution for higher paid employees?

I guess I'm trying to get a feel for the entrepreneur thinking of adding a lower paying employee, say who earns 20,000 euros.  From the standpoint of managing his expenses, he's either taking on 28,000 or 32,000 of expenses.  For startup companies with, say 500,000 of turnover and say a 10% pretax profit margin, this is quite a decision.  Particularly if it is hard to let someone go if business falls off--which I understand per the article it is not now,,,,but perhaps was in the past.

by wchurchill on Wed Mar 21st, 2007 at 02:35:34 PM EST
[ Parent ]

Others have rated this comment as follows:


Top Diaries

Occasional Series