All that changes on employer contributions and contributions in 2019

MIL OSI Translation. Government of the Republic of France statements from English to French –

FILLON reduction on low wages

Companies with less than 20 employees: maximum reduction of 28.14% of the employers' expenses located in the field of the device, for the employees remunerated with the Smic.

Applies in the limit of remuneration to 1.6 times the Smic.

Companies with 20 or more employees: maximum reduction of 28.54%.

Extended reduction to unemployment insurance contributions (excluding AGS) and AGIRC-ARRCO supplementary pension contributions as follows:

4.05% unemployment contributions; 1.29% of CEG (General Equilibrium Contribution) 4,722% of pension contributions (Tranche 1)

That is a total of 10,062%

Implementation scheduled for October 1, 2019

Competitiveness and Employment Tax Credit (CICE)

For an annual remuneration not exceeding 2.5 Smic calculated for one year, tax credit of:

6% for the company located in mainland France; 9% for the company located in the overseas departments.

Repealed as of 1 January 2019. Replaced by the reduction of employers' social contributions at the rate of 6% for pay less than or equal to 2.5 Smic.

The rate goes from 13% to 7%.

Wage Tax Credit (CITS)

In 2018, the rate is set at 4%

Repealed as of January 1, 2019.

Family allowances

For an annual remuneration less than or equal to 3,5 Smic calculated, the reduced rate of family allowances is of 3,45% For a higher remuneration, the rate is of 5,25%.

No change

EDITOR'S NOTE: This article is a translation. Please forgive us should the grammar and / or sentence structure not be perfect.