Salary brackets in 2026: definition, table and calculation
29 April 2026 · 5 min reading time
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Salary brackets are used in payroll to divide gross pay into several calculation levels. They are used in particular to determine how certain contributions apply on the payslip.
Many employees do not notice them. The question often comes up when reading a payslip more closely, or when trying to understand why two colleagues with similar salaries do not contribute in exactly the same way.
They should also not be confused with income tax brackets, which follow a different logic.
What is a salary bracket?
A salary bracket refers to a portion of gross salary between two thresholds. In payroll, pay is not always treated as a single block. It can be divided into several levels in order to correctly calculate certain social contributions.
This breakdown is based on limits set according to the Social Security ceiling, also known as the PMSS, which makes it possible to determine which part of the pay falls under bracket 1, and possibly bracket 2 when the salary exceeds the first threshold.
What are salary brackets used for on the payslip?
Salary brackets are used to apply the correct calculation bases. Some contributions are calculated within the limit of the Social Security ceiling, while others also apply to the part of the salary that exceeds this ceiling.
This is notably the case for the Agirc-Arrco supplementary pension scheme. Bracket 1 applies to the part of the salary up to the Social Security ceiling. Bracket 2 applies to the part between 1 and 8 times this ceiling.
2026 salary brackets: the key table to know
To correctly read salary brackets in 2026, you need to start from the monthly Social Security ceiling. Bracket 1 corresponds to the part of the gross salary up to this ceiling, while bracket 2 applies to the portion of pay between 1 and 8 times this ceiling.
| 2026 reference | Amount |
|---|---|
| PMSS | €4,005 per month |
| PASS | €48,060 per year |
| Bracket 1 | from €0 to €4,005 per month |
| Bracket 2 | from €4,005 to €32,040 per month |
| Bracket 1 | from €0 to €48,060 per year |
| Bracket 2 | from €48,060 to €384,480 per year |
These thresholds are used in particular as a basis for calculating certain supplementary pension contributions in the private sector.
How do you know your salary bracket?
To know your bracket, you simply need to compare your monthly gross salary with the monthly Social Security ceiling. If the gross pay is less than or equal to this threshold, it falls entirely under bracket 1. If it exceeds this amount, the part up to the ceiling falls under bracket 1, while the portion above it falls under bracket 2. The same salary can therefore be split across several calculation levels.
The reasoning is always based on gross salary, not net salary, which is a common source of confusion. In case of doubt, the payslip shows the contribution lines calculated according to the different applicable bases.
What is the difference between bracket 1, bracket 2 and the former brackets A, B and C?
The distinction between bracket 1, bracket 2 and the former brackets A, B and C can be confusing, because these terms do not refer to exactly the same period or the same uses.
Historically, two systems coexisted: brackets 1 and 2 for all employees covered by ARRCO, and brackets A, B and C reserved for executives covered by AGIRC. Bracket A corresponded to the part of the salary within one ceiling, bracket B to the part between one and four times this ceiling, and bracket C between four and eight times the ceiling. Above eight times the ceiling, no contribution was due.
Today, the terms bracket 1 and bracket 2 are more commonly used, since the AGIRC and ARRCO schemes merged on January 1, 2019. If you are looking at a payslip or document from before that date, you may still come across the former terms. They did not disappear overnight from all payroll tools.
Which contributions use salary brackets?
Salary brackets are used to calculate certain contributions whose base varies depending on the level of pay. The best-known example is the Agirc-Arrco supplementary pension scheme, which distinguishes between bracket 1 and bracket 2. Other contributions may also refer to capped bases or pay brackets, depending on the applicable rules.
Not all payslip lines are based on the same breakdown. Some contributions are calculated on the total gross salary, while others are calculated only on a capped portion or split according to brackets. Contribution brackets exist precisely to apply the right calculation to the right part of the pay, without treating all salaries uniformly.
Can a salary be split across several brackets?
The same salary can be split across several salary brackets. This is actually the principle of the system. When gross pay exceeds the first threshold, it is not fully moved into another category. Only the part exceeding the first limit changes bracket. An employee can therefore have part of their gross salary in bracket 1 and another part in bracket 2.
This system is essential for correctly reading a payslip. It avoids the mistaken interpretation that the whole salary is subject to the same calculation base. The payslip separates the amounts according to the applicable thresholds, which makes the system more precise and more consistent with the contribution rules in force.
Calculation examples based on gross salary
Here are a few examples based on a PMSS set at €4,005 per month.
For a gross salary of €2,800, the entire pay is below the ceiling. The salary therefore falls entirely under bracket 1. No part is allocated to bracket 2.
For a gross salary of €4,500, the first €4,005 falls under bracket 1, while the remaining €495 falls under bracket 2. The salary is split across two calculation levels.
For a gross salary of €9,000, the part up to €4,005 remains in bracket 1, while the portion between €4,005 and €9,000, meaning €4,995, falls under bracket 2. The higher the salary, the larger the part covered by the second bracket.
These examples show that salary brackets do not change the pay itself. They are only used to determine which part of the salary is taken into account for a given contribution base. The salary remains the same; only the way it is broken down for calculations changes.
Do salary brackets change every year?
Salary brackets may change from one year to another because they depend on the Social Security ceiling. When this ceiling is revalued, the thresholds used in payroll also change, along with the calculation bases on which certain contributions are applied.
In 2026, the PMSS is €4,005 per month, compared with €3,925 in 2025. This €80 difference may seem modest, but it has a real impact on the split between bracket 1 and bracket 2 for employees whose salary is close to the ceiling.
Salary brackets and income tax brackets: what is the difference?
Salary brackets should not be confused with income tax brackets. In the first case, it is a breakdown of gross salary used to calculate certain social contributions. In the second, it refers to the progressive income tax scale, which determines the portion of income taxed at each rate.
The confusion is common and understandable: the word "bracket" is used in both cases, and both concepts appear in contexts related to pay. However, one belongs to payroll, while the other belongs to household taxation. They are two separate mechanisms that do not directly influence each other.
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