The year 2018 will be marked, for farmers and agricultural employees alike, by an increase of the CSG compensated by a reduction of their social security contributions.
Under the Social Security financing bill currently under discussion in Parliament, farmers and farm workers will benefit from a reduction in their social security contributions in order to compensate for the increase in the CSG of 1.7 percentage points which is proposed to take effect on January 1st.
As of January 1, 2018, the generalized social contribution (CSG) will increase by 1.7 points to reach a rate of 9.2% levied on the income from agricultural activities and the wages of farm employees. The share of the CSG which is deductible from taxable income amounts to 6.8% and the not deductible part to 2.4%.
Also as of 1 January 2018, all farmers will see their family benefits contribution drop by 2.15 percentage points. This would entail the abolition of this contribution for those whose income is less than 110% of the annual ceiling of the Social Security (Pass), or about € 43,700 in 2018.
Moreover, at present, some farmers benefit from a 7% exemption from the Amexa contribution rate (sickness and maternity insurance). This exemption would be replaced by a more scalable one. Thus, from 1 January 2018, farmers with an annual income of less than 110% of the Pass would be entitled to a reduction of their Amexa contribution of up to 5%. Given the abolition of certain social contributions levied on the wages of agricultural employees, unemployment insurance and health insurance contributions would cease to be due in 2018.