Does your pay slip give you headaches when you try to unravel it? Don t worry, you re not alone! Nearly two out of three French people find themselves in the same fog. Don t worry, we ll explain it all here!

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There are four main elements to take into account when calculating your take-home pay: gross salary, net salary before tax, taxable salary, net salary.

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‍Gross salary: This is the salary you negotiated when you were hired and visible on your employment contract.

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Net salary before income tax also known as Net à payer avant impôts sur le revenu: This is the stage at which you start making contributions. Starting with your gross salary, you can deduct a portion for retirement, grouping together the social security pension and the supplementary pension. Then there s a portion for health insurance or employer s contributions; health insurance varies according to your company. And lastly, there s the CSG/CRDS, which covers health insurance, unemployment benefits, social debt repayment, social aid and support for the elderly and disabled. Once all these contributions have been deducted, you get the net salary before tax, around 75% of your gross salary.

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The net taxable salary: In France, the tax treatment is not the same if you earn €1,500 or €4,000. The taxable salary is used to determine your contribution. This includes net salary before income tax, social security contributions (CSG/CRDS as mentioned above) and health insurance. We ll be doing an article on how to better understand your tax bracket.

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Net salary after tax: This is the amount you ll receive in your bank account! All you have to do is deduct the withholding tax from your net taxable salary.

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There, now you ve got a behind-the-scenes look at your payslip! It s like a financial puzzle that takes shape every month. By demystifying it all, you have the power to better manage your money and make smart decisions.

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