The method of calculating the annual Social Security ceiling on payslips depends on the amount of the ceilings, which are revalued according to changes in salaries.
The Social Security ceiling has not changed in 2022 but the BOSS brings a number of clarifications and changes.
Remember to begin with that old-age insurance contributions are calculated each month, within the limit of the monthly value of the social security ceiling, calculated in number of calendar days. The same rules apply to supplementary pension contributions and differ significantly from the previous calculation methods.
This monthly calculation of the contributions due to the basic scheme old-age insurance does not change the progressive regularization of the contributions.
A timed pro rata is also provided for employees who are paid according to a frequency other than the month (every two weeks or every quarter for example).
The BOSS has made a number of clarifications and modifications and allows the proration of the Social Security ceiling according to the number of days, for employees who work less than 218 days per year, from January 1, 2021..
In the event of non-successive fixed-term contracts, the proration of the ceiling is no longer done contract by contract, the regularization of the ceiling is done taking into account the sums paid since the date of hiring of the first employment contract. The measure must apply from January 1, 2022.
Finally, the calculation of the reduced ceiling for part-time employees is done in hours related to those of the full-time employee.
The rules for the monthly calculation of basic old-age insurance contributions
The calculation of old-age insurance contributions is monthly for some employees, who receive wages fortnightly or weekly, for example. It remains annual for all other salaries.
Thus, the old-age insurance contributions, which are the capped contributions to the basic pension scheme for employees and the supplementary pension schemes, are calculated according to the social security ceiling, calculated monthly in calendar days.
The contributions calculated within the limit of an annual ceiling are regularized each month.
Monthly cap =
(Monthly value of Social Security ceiling) x (Number of days of employment period)
Number of calendar days in the month
The pro rata temporis adjustment of the ceiling for sales reps and non-monthly salaries
Non-monthly salaries are paid at least twice a month under the provisions of the Labor Code.
Sales reps or travellers, usher representatives are paid at least once every three months.
The monthly social security ceiling (PMSS) is revalued each year and is calculated on a pro rata basis according to the frequency of the payroll.. This is a maximum amount set by article D242-17 of the Social Security Code.
As an exception, employees paid by the piece benefit from a ceiling adjusted to 50% of the monthly social security ceiling.
Ceiling of the month=
(Monthly value of pay period Social Security cap) x (Number of days in employment period)
Number of calendar days in the period
Example of calculation of the social security ceiling for a non-monthly salary
A non-monthly salary is paid on the 15th of the month and the last day of a month which includes 28 calendar days. Its ceiling will be equal:
3,428 x 15 / 28 = 1,836 rounded for the first pay.
3,428 x (28 – 15) / 28 = 1,592 rounded for the second pay.
As a reminder, in the event of a leap year, the number 28 is replaced by 29.
The reduction of the Social Security ceiling for part-time employees
The value of the ceiling applied to part-time employees corresponds to the number of hours provided for in the contract, increased by the number of additional hours worked, ratio either to the legal duration of work or the duration fixed by agreement by the branch, the company or the duration work applicable in the establishment.
(Monthly value of the Social Security ceiling) x (Contractual working time + additional hours)
Legal duration of work
Example of calculating the PMSS of a part-time employee
An employee works 24 hours a week. During the month of April, he worked 7 additional hours. The value of the ceiling will be calculated as follows:
24 * 52 / 12 + 7 = 104 contractual hours + 7 = 111 hours
3,428 * 111 / 151.67 = 2,508.79
It is no longer the full-time remuneration that serves as the basis for the proration of the social security ceiling.
The calculation of the social security ceiling in the event of entry or exit during the month
When the employee is hired or in the event of the end of the employment contract during the month, the social security ceiling is calculated on a pro rata basis, according to the total number of days in the month. For a 30-day month, the social security ceiling is calculated in 30 and for a 31-day month in 31 months.
Example of calculating the PMSS of an employee hired during the month
An employee is hired on April 19. There are 30 days in this month, the employee is present on 12 calendar days of the working month, from April 19 to 30.
The value of the ceiling will be calculated as follows on his payslip:
3,428 * 12 / 30 = 1,371.20
The reduction of the Social Security ceiling in the event of suspension of the employment contract: illness…
The social security ceiling is prorated in the event of short-term absence (sickness with or without daily social security benefits or unpaid leave). Unpaid absences are also taken into account.
Proration will be mandatory even for one or two days of illness or unpaid leave and is done in number of days. The monthly social security ceiling is reduced to take into account the days of the unpaid period.
The following formula applies:
Monthly cap =
(Monthly Cap Value) x (Number of Paid Days in Employment Period)
Number of calendar days in the month
The number of paid days of the period of employment corresponds to the number of calendar days from which are subtracted the days of absence not giving rise to maintenance of remuneration.
In the event of absence for hours or half-days, the BOSS specifies that there is no reduction in the ceiling.
In case of salary maintenancethe ceiling is only reduced according to the waiting days.
Thus, the BOSS also specifies that in the event of even partial compensation for the absence (compensation subject to social security contributions, benefits in kind, increase in the time savings account), the ceiling is not reduced. The same rule applies if a bonus or another element of remuneration is paid to the employee without being able to be linked to a previous period of employment.
Example of calculation of the PMSS of an employee on sick leave with continued salary
An employee is on sick leave from April 11 to 15, i.e. 5 calendar days. The collective agreement provides for salary maintenance beyond the 3-day waiting period.
The number of days taken into account in the calculation of the ceiling:
There are 30 calendar days in the month of April, the absence lasts 5 days with continued salary beyond 3 days of waiting, i.e.:
30 days – 3 days of waiting = 27 days
The value of the Social Security ceiling will be calculated as follows on his payslip:
3,428 * 27 / 30 days = 3,085.20
For bonuses and other elements of compensation, the measure must apply from January 1, 2022 with the possibility of early application.
On the other hand, it is reduced in the event of repayment of the IJSS only (without additional compensation).
These rules do not apply in the event of partial activity with payment of additional compensation subject to contributions (the ceiling will be reduced).
The social security ceiling and employee country leave
There is no proration calculation of the social security ceilingwhen the employee takes days of country leave, since it is expected that his employer will maintain his salary over this period.
There is one exception: the country leave fund. When the branch of activity contributes to a specific country leave fund, the Social Security ceiling is prorated to the number of days worked.
The employee on leave receives:
- from his employer: remuneration on which the absence of paid leave is deducted;
- from the country leave fund: compensation corresponding to the same period.
There are country leave funds in the following sectors:
- construction and public works;
- port and dock handling;
- entertainment sector;
- intermittent workers in transport.