Regulatory changeIn effectSocial security and healthcareNational

CSG on pensions and unemployment benefits: rate based solely on reference taxable income

The 2015 Social Security Financing Act changes the rules setting the CSG rate on replacement income (pensions, unemployment benefits, early retirement). The criterion based on the amount of income tax paid is removed: exemption, the reduced 3.8% rate or the standard rate (6.6% on pensions, 6.2% on unemployment benefits) now depend solely on the reference taxable income of the year before last. For 2015, the reduced rate applies above €10,633 for one tax share (plus €2,839 per half-share) and the standard rate from €13,900 (plus €3,711 per half-share), with higher thresholds overseas. Thresholds are indexed to inflation every year.

Measure originators

InitiatorGVT

Michel Sapin

Gouvernement

InitiatorGVT

Marisol Touraine

Gouvernement

Impact on public finances

No net cost2015 estimate · Social security

Source of the estimate: PLFSS 2015, annexe 10 (évaluations préalables), article 7 (réforme des seuils d'assujettissement à la CSG sur les revenus de remplacement) (Indirect official figure)

A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.

Effective date

1 January 2015

Measure impact

According to the impact assessment, 700,000 people, more than 3% of recipients of replacement income and 80% of them in the 3rd to 5th living-standard deciles, become eligible for the reduced CSG rate and the CASA exemption. The new criterion also creates losers among households that benefited from tax reductions. Applies to income whose triggering event occurs from 1 January 2015.