The general social contribution (CSG) is deducted at source on most income. It concerns in particular retirement pensions, with a rate that varies according to taxpayers. Explanations.
This is the story of a levy which has seriously increased since its creation in 1991 with a rate then fixed at 1.1%. Intended to finance Social Security, the CSG is paid on most income (salary, retirement, investment, etc.) except for specific exemptions.
With a yield of approximately 130 billion euros per year, it is the State’s largest source of revenue after VAT, far ahead of income tax, corporate tax or corporate tax. real estate wealth. Regarding the CSG, the effort is not distributed in the same way among all taxpayers. For salaries, no progressiveness: the effort is 9.2% regardless of the salary amount. The same goes for the independents.
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For withdrawals, on the other hand, the situation is more complicated. It exists 4 possible rates for withdrawals: the zero rate (0%), the reduced rate (3.8%), the median rate (6.6%) or the normal rate (8.3%). Pension funds are responsible for collecting the CSG on the pensions they pay. To determine the applicable rate, they are based on the reference tax income (RFR) and on the composition of the tax household (number of shares), data communicated by the tax authorities through income declarations. In 2023, the criteria are as follows:
| Tax shares | CSG 3.8% + CRDS | CSG 6.6% + CRDS +CASA | CSG 8.3% + CRDS +CASA |
|---|---|---|---|
| 1 part (single person) | 11614 | 15183 | 23564 |
| 2 slices (couple) | 17816 | 23291 | 36144 |
| Additional half share (dependent) | + 3101 | + 4054 | + 6290 |
RFR to take into account: tax notice 2022 on income 2021.
CRDS 0.50% in all cases, CASA 0.30% in all cases.
Thresholds valid in mainland France. For the detailed table, see the ministerial letter of December 12, 2022.
No real-time update
Please note: these CSG rates apply with a 2 year lag for new withdrawals! To the great astonishment of some who push the doors of their tax center to obtain an explanation.
Indeed, the pension funds update the CSG rates each January 1, taking into account the latest situation communicated by the tax authorities.
Example for a retirement in the fall of 2022
For a retirement in the course of the year 2022, the CSG rate applied is based on the RFR 2020, while the person was still working. On January 1, 2023 and for the whole of 2023, the CSG rate so stay low on this RFR 2021.
On January 1, 2024, the CSG rate will be updated on the RFR 2022, based on the 2023 declaration that you have just completed… It is only at the January 1, 2025 that the CSG level will reflect the real withdrawal incomesince it will be low on the RFR 2023the first year in which the person will have received pensions throughout the year.
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