cotisations

Cotisations is a term used to describe mandatory payments made by individuals and employers to fund social protection systems and, in some contexts, other funds and associations. In many countries, and particularly in France, they form a core component of the social protection model, financing health care, pensions, family benefits, unemployment insurance, and related services.

In practice, cotisations are typically calculated as percentages of remuneration and are collected on payroll. They are usually divided into portions borne by the employee and by the employer. The exact rates and bases depend on the regime and income level, and several schemes may apply simultaneously. Some contributions are capped by social security ceilings, while others apply to all earnings. The funds supported by cotisations include health insurance, basic and supplementary pensions, family allowances, unemployment benefits, and contributions to work-related accident insurance, among others.

Administration and collection are carried out by designated bodies and agencies, such as social security agencies, unemployment insurance funds, and tax or revenue authorities, depending on the country. Compliance is enforceable, with penalties for late or non-payment and mechanisms for recovery and audit.

Beyond social protection, the term cotisation can also refer to membership dues or contributions to professional associations, unions, or savings and retirement funds. In all cases, cotisations represent regular, mandatory payments intended to pool resources for collective benefits and social security coverage.

Notes: the specifics—rates, bases, ceilings, and who pays—vary by country, sector, and regime.