Who finances social protection in France?

THE ECO SCAN – According to a report from the Ministry of Health, three quarters of social protection resources in France are made up of employer contributions and payroll deductions.

The resources that finance social protection in France amounted to 711 billion euros in 2013. Continuing the trend of previous years, they increased by 2.9%, we can read in the 2015 edition of the on protection social in France and in Europe in 2013, published this Wednesday by the Department of research, studies, evaluation and statistics (DREES), attached to the Ministry of Health.

These resources come first from social contributions linked to salaried employment (employers and employees), self-employed workers, mutual insurance and provident schemes, etc. On the other hand, they arise from taxes on products and production, on income and property, on wages and labor, the generalized social contribution (CSG) by the case law of the Constitutional Council, taxes VAT type, etc. Finally, social protection is financed by the State and the local communities, then, by various resources.

• Social contributions: employers pay 240.6 billion

Social contributions, which amounted to 440.1 billion euros in 2013, alone account for 61.9% of total resources. In relation to the active working population, the DREES specifies that they represent overall, in 2013, a little more than 1,420 euros per active worker and per month. These social contributions are essentially linked to salaried employment, with employer contributions estimated at 240.6 billion euros and employee contributions at 88.3 billion euros.

• Taxes and duties: the CSG alone weighs 91.5 billion

According to the DREES, 178 billion euros in taxes and levies were allocated to social protection schemes in 2013. Their contribution increased by 3.2% over one year and represents a quarter of total resources. The CSG, taken directly from salaries, alone weighs 91.5 billion euros.

• The State and local communities

The Drees measure that public contributions contribute to 9.7% of the total financing of social protection, or 68.8 billion euros in 2013, an increase of 2.5%. This amount corresponds to direct allocations from state and local government budgets.

• Other resources

Finally, it is other resources, in particular financial products, sales of goods and services and insurance indemnities, which finance the remaining 24.1 billion euros, or 3.4% of total resources.