Every year, the thresholds which determine your CSG rate are re-evaluated. This is an important change since it can, in itself, tell you whether or not you will have to pay the Generalized Social Contribution (CSG). Indeed, like working people, retirees also have this obligation, but the decision to pay or not this contribution depends on your income levels. At the dawn of 2024, when the rate will increase, find out if you will pay the CSG next year.
The generalized social contribution (CSG) is a social levy, just like the CRDS or the CASA, which finances social protection. This tax is, therefore, levied on earned income, replacement income, whether retirement pension or unemployment benefit, but also property income and investment income. Most of the time, it is taken directly at source from these same incomes, except in the case of social and family benefits.
The CSG rate is currently set at 9.2% on earned and similar income. On replacement income, it varies depending on the type of income. It amounts to 8.3% for retirement and disability pensions or 6.2% for partial activity benefits, unemployment benefits and daily social security benefits. For 2024, these thresholds were raised by 5.3%, a figure calculated according to consumer prices, excluding tobacco, observed two years previously, i.e. in 2022.
A recent circular from the National Old Age Insurance Fund (Cnav), published on December 12, lists the income levels for which the CSG rates are applied. Remember that there are four of them, i.e. 0%, 3.8%, 6.6% and 8.3%. To determine your CSG rate, you must look at your 2022 reference tax income (RFR) which appears on your 2023 tax notice.
If your income has changed in recent years, it is therefore likely that your CSG rate can be revised upwards or downwards depending on these fluctuations. However, these changes may be moderate if your CSG rate is zero or reduced (3.8%). So, if you cross a new threshold this year, it will not be automatically applied.
Therefore, for your CGS level to increase, it is essential that you exceed the required RFR threshold for two consecutive years. So, in the event that, in 2022, your CSG rate was 3.8% and your resources increased this year, moving you towards a rate of 6.6%, you will not change next year.
In order to be exempt from CSG, your income must be less than or equal to certain figures. For a residence in mainland France, with a single tax share, it is essential not to exceed the figure of 12,230 euros, whereas with two tax shares, this figure now rises to 18,760 euros.
