This year, Tax Freedom Day for employees is...

The average French worker works until July 17 to fund public services and social benefits, according to the Molinari Economic Institute’s annual study on the actual social and tax burden in the European Union. 

The effective tax and social security burden on the average French worker remains the highest in the European Union in 2024, with the tax and social security break-even date falling on July 17. 

In 2024, France remains the country with the highest compulsory taxes and social security contributions for the average worker, ahead of Belgium and Austria.
 

To calculate the actual social and tax burden, the study takes into account social security contributions (both employer and employee), income tax, and VAT, which reduce the average employee’s purchasing power. In France, the tax burden on the average employee amounts to 54% when all these factors are taken into account, representing a marginal decrease of 0.10% compared to last year.
 

Tax and Social Security Freedom Day is the date on which the average employee no longer has to contribute to public services and collective benefits and can freely dispose of the fruits of their labor. In France, this date falls on July 17, which means that the average employee works 198 days out of 365 to pay mandatory taxes and social security contributions.
 

To estimate labor costs and the average employee’s take-home pay, the study takes into account employer and employee contributions, income tax, and VAT. In France, the average employee costs their employer €59,458 (9th in the EU), but receives only €27,326 net of social security contributions and taxes (11th in the EU). Social security contributions account for 101% of net pay, which is the highest among EU countries (average: 48%).
 

The study emphasizes that France’s high social and tax burden does not translate into better public services, and that life satisfaction is higher in eleven countries with lower social and tax burdens. Furthermore, pensions—which account for 24 percent of public spending in France—are more expensive than in European countries that rely on a combination of pay-as-you-go and collective capitalization systems.