Why employees in France are likely to receive less money in January
Three changes likely to make a dent in the usual level of net pay
Employees in France may receive less on their payslip this month than usual
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Employees in France are likely to receive less money in their pay packet than normal this January, as a result of changes that came into force in 2025.
Changes that could affect workers’ pay in January include (reports TF1):
An increase in mutuelle rates
Mutuelle (social security health insurance) rates are rising by an average of 6% monthly, driving on average a net pay decrease of €6 per month.
This is because companies deduct the cost of health insurance directly from their employees’ gross pay.
The complémentaire santé is mandatory to pay, but private employers cover at least 50% of the cost. Whether the increase will come into force on your January pay depends on when the company’s new contract starts.
Read also: How to save money on mutuelle cover in France
Read more: French top-up insurance to increase by 6% in 2025
Transport reimbursement
From January 1, 2025, employers who previously reimbursed employees 75% of the cost of a public transport ticket must now (generally) limit this to 50%.
This line appears as ‘Remboursement transport’ on your payslip.
For example, the new rules mean that if your monthly season ticket costs €60, your company will now only reimburse a maximum of €30 (50%), instead of €45 (75%).
However, your employer may choose to compensate you further by paying an extra transport allowance. The maximum permitted limit for this will increase in 2025.
Personalised rate of tax deducted at source
Many employees are likely to be affected by a new tax method, known as ‘taux personnalisé’ or ‘retenue à la source’.
This pertains to the amount of tax that the employee owes, but is settled directly by the employer to the tax authorities.
This percentage will change for employees who have changed it themselves during 2024 on the official tax website impots.gouv.fr. However, this adjustment only applies for tax counted until December 31 2024.
After that, the tax authorities will automatically calculate the applicable rate. As this may turn out to be higher than before, it could also lead to a reduction in net pay shown on your payslip.
Read also: Month by month: What are key tax dates in France in 2025?
Read more: Why French tax office may debit up to €300 from your bank account
