Employers in Paris and the Ile de France have to pay an extra tax for 'Transport en commun'. When I lived there it was set, IIRC, at about 3% of the total wages and salary bill - and my employer then deducted my share from my salary. So, not quite as cheap as appears at first glance.
The
Versement transport is a payroll tax (between 1.5 and 2.85% of the super-gross salary in Île-de-France, generally less in other parts of France) and appeared (*) on the employee payslips as an "employer contribution", not as an "employee contribution" (which would be deducted from the gross salary). It is only due by employers with a headcount of 11 employees or more.
You forgot to mention that all French employees are entitled to an extra reimbursement of 50% their monthly public transportation costs.
In essence:
- I pay (more or less) €70/month for my Navigo card - this is the yearly direct debit option, slightly cheaper than the standalone monthly pass
- My employer adds an extra €35 to my payslip as a direct subsidy in my pocket. This subsidy is not subject to taxation or contributions.
- My employer pays an extra tax of 2.85% of my gross salary to subsidise the Parisian region transportation authority. It is quite an exercise in intellectual gymnastics from your part to consider that tax as something that
I pay directly, especially as it is not deducted from my gross salary. Rather, it forms part of what we call in France
le salaire superbrut (the super-gross salary, i.e. the total labour cost for one's employer). Agricultural workers and the self-employed who reside in Île-de-France do not pay the
versement transport but pay the same upfront cost of €75.20 for a monthly pass.
- Students, the elderly, and other categories of users have specific discounts.
(*) It does not appear anymore as a separate line