Decline in employer contributions: the dates to know

MIL OSI Translation. Government of the Republic of France statements from English to French – Credits: © highwaystarz – Fotolia.com

The Social Security Financing Act strengthens employer contribution relief for 2019. The original schedule has just been adapted and will be confirmed by the 2019 Finance Bill, discussed in the autumn.

The calendar of employers' contribution reductions in 2019 would be adjusted as follows:

The reduction of the employer's sickness contribution rate by 6 points for wages less than or equal to 2.5 SMIC (Law 2017-1836 of 30 December 2017, Article 9, OJ of 31).

This measure would come into force on 1 January 2019 to replace the Competitiveness and Employment Tax Credit (CICE), the abolition of which was enacted for remuneration paid from 2019. Note, however, that employers will receive the CICE due in respect of 2018 (approximately € 20 billion).

The reduction of 4 additional points of employer contributions (ex-Fillon reduction), unemployment insurance contributions (excluding AGS contribution) and contributions due for legally-mandatory supplementary pension schemes (type AGIRC-ARRCO).

Initially scheduled for January 1, 2019, this tax relief, which concerns salaries at the SMIC level, could be postponed until October 2019 in order to contain the public deficit.

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