When it was set up, the tax exemption for overtime hours was met with the approval of many TPE and SME bosses, but also a majority of employees. Abolished by Hollander during his five-year term as head of the country. The measures are about to reappear. From 2020, the French will again be able to benefit from this cost of thumb for purchasing power. Assured the spokesman of the Elyse Benjamin Griveaux.
FROM THE ELIMINATION OF OVERTIME CONTRIBUTIONS TO THE “DESOCIALIZATION”
A popular measure put in place by President Nicolas Sarkozy and then abolished by Hollander. The tax exemption for overtime will be back in France in 2020. According to the statements of Benjamin Grievous questioned on Europe 1 this weekend, “During the presidential campaign, Emmanuel Macron had committed to saying that it was necessary to remove contributions on overtime. It will be done by 2020.
This is good news for bosses and employees alike. While he also reminded that some budgetary constraints forced to postpone this reform to 2020, the spokesman of the government added however that “the work pays better”.
At the beginning of February, the Prime Minister had already mentioned the upcoming establishment of “DE socialization of overtime “. The approach was to consist of the abolition of contributions for both the employer and the employee, “not for the next (state) budget, but for the next one”. It is, therefore, a double confirmation offered to us by members of the government.
An Increase in Purchasing Power
The DE socialization of overtime by Emmanuel Macron should allow the French who will benefit, to increase their purchasing power. Similarly, the incentive for overtime will make businesses more productive, and therefore more competitive.
Finally, Eduard Philippe did not rule out a faster implementation if the economic lights went green earlier than expected.