Fig from 2020 to 2022, the Social Security ceiling (PASS) rebounded strongly by 6.9% in 2023. It will once again increase strongly, beyond current inflation, 5.4% on January 1, 2024 This is good news for sick leave, certain withdrawals, retirement savings, etc.
The Covid-19 health crisis has disrupted the annual evolution of the Social Security ceiling. This ceiling, having impacts on multiple social security contributions and benefits, is in fact indexed to the average salary per capita (SMP) observed during the previous year.
Due to the massive use of partial unemployment during confinements, the SMPT fell in 2020… and the ceiling should theoretically have fallen. Which would have had detrimental effects both on the rights of employees and on public finances, to quote the Social Security Accounts Commission, in its 2023 report. Consequently, this ceiling was frozen for 2 years… then increased sharply in 2023 as a compensation measure.
| Annual amount | Annual increase |
|---|---|
| 39732 | 1.3% |
| 40524 | 2% |
| 41136 | 1.5% |
| 41136 | |
| 41136 | |
| 43992 | 6.9% |
| 46368 | 5.4% |
Source: Social Security Accounts – September 2023
In 2024, return to normal. The Social Security ceiling will increase by 5.4% on January 1, 2024, as announced in the official bulletin. (1). The different variations of the ceiling will be made official in December by means of a decree published in Official newspaper but the Official Social Security Bulletin already details different thresholds of the social security ceiling valid in 2024:
- Annual social security ceiling (PASS): 46,368 euros (43,992 euros in 2023);
- Monthly ceiling: 3864 euros (3666 euros in 2023);
- Daily ceiling: 213 euros (202 euros in 2023);
- Hourly ceiling: 29 euros (27 euros in 2023).
Social benefits released in 2023 and 2024
As in 2023, this increase from January 1 is good news for employees and benefit recipients. The revalued PASS brings in its wake certain social Security benefits using it as a basis for calculation: daily allowances for illness, work accident or maternity, disability pensions, old age insurance pensions from the general scheme… The PASS is used to set the maximum amount for these benefits, so a freeze is mechanically unfavorable to the beneficiaries.
Employers use it to calculate the maximum amount of social contributions on salary, retirement or unemployment, the tax and social exemption thresholds for termination compensation and the amount of internship compensation for students.
This value also has a tax impact: it is used to calculate the income deduction ceiling applicable to employee savings and retirement savings schemes (PER, Perco, Perp, Madelin, etc.). Or even set the maximum employer contribution to employee savings.
(1) Official Social Security Bulletin.