Fact sheet: The french social security system - Welcome to France (2024)

FAQs

What is the social security system in France? ›

Social security (French: sécurité sociale) is divided by the French government into five branches: illness; old age/retirement; family; work accident; and occupational disease. From an institutional point of view, French social security is made up of diverse organismes.

Each French person receives at birth a national identification number, called "Social Security number", which comes from his registration to the NIR (National Repertory). The number was created by René Camille in 1941 under the Vichy Regime. This INSEE number is composed of 13 digits + a two-digit key.

The average monthly state pension payment in France is about $1,327, according to France's Centre of European and International Liaisons for Social Security, or Cleiss. This figure does not include payments from the required supplementary program or other private plans.

Retiring to France from the US

As a French resident, you will pay French taxes on most income. However, there is an exemption for certain retirement and pension programs – this includes your social security income.

Mandatory benefits in France include health insurance, pension, life and disability insurance, death insurance, unemployment benefits, and workers' compensation.

While the autonomy allowance can reach a maximum of 1,742 euros, the disability allowance is in theory uncapped: a person in need of help 24 hours a day can therefore receive up to 13,000 euros a month.

The social security number consists of 15 digits: 13 digits containing information such as the gender, year, month and place of birth plus a 2 digits key number. For people born in France, the social security number is automatically issued at birth.

Individuals born in France are registered for membership at birth. INSEE (France's National Institute of Statistics and Economic Studies) assigns them a social security number based on the birth registration information it receives from France's town halls (“mairies”).

The nine-digit SSN is composed of three parts: The first set of three digits is called the Area Number. The second set of two digits is called the Group Number. The final set of four digits is the Serial Number.

It's possible to claim a pro-rata French pension if you've worked and made social security contributions in France for at least 10 years. The state pension scheme entitles retirees to draw a maximum of 50% of their annual average earnings. Retirees born after 1953 must receive a minimum of 37.5% of their earnings.

What is the average retirement pay in France? ›

Level of pensions

People having retired in France receive on average €1,509 gross pension income a month (around €1,400 net). However, it increases to €1,537 net when the widower's pension is included, an amount estimated to represent on average 62.9% of the revenue of working class people in 2020.

The mandatory state pension in France operates on a pay-as-you-go basis, redistributing contributions from current workers to retirees. It aims to provide 50% of a retiree's income based on their 25 highest earning years, up to a set ceiling (€41,136 annually in 2022).

An employee residing in France for less than 183 days does not owe tax on income earned through their work in the country, as long as their remuneration is paid by or on behalf of an employer which is not established in France.

If you leave the U.S., we will stop your benefits the month after the sixth calendar month in a row that you are outside the country. You can make visits to the United States for specific periods of time, depending on how long you've been outside, to continue receiving your benefits.

the USA ones may look unreasonable. In contrast to the US combined rate of 15.3%, European rates range between 13.97% (not including medical insurance and pension contributions) in Switzerland and a whopping 65-68% in France, based on the 2022 table by Trading Economics.

The mandatory state pension in France operates on a pay-as-you-go basis, redistributing contributions from current workers to retirees. It aims to provide 50% of a retiree's income based on their 25 highest earning years, up to a set ceiling (€41,136 annually in 2022).

It's possible to claim a pro-rata French pension if you've worked and made social security contributions in France for at least 10 years. The state pension scheme entitles retirees to draw a maximum of 50% of their annual average earnings. Retirees born after 1953 must receive a minimum of 37.5% of their earnings.

Normally, people who are not U.S. citizens may receive U.S. Social Security benefits while outside the U.S. only if they meet certain requirements. However, under the agreement, you may receive benefits as long as you reside in France regardless of your nationality.

Finally, employers should note that the annual social security ceiling amounts for 2024 ³ are €3,864 per month or €46,368 for a full year. These figures apply to social security contributions due for periods of employment starting 1 January 2024.