Aid increaseEndedEmployment and contributionsNational

Short-time work reform: State allowance raised to 70% of gross pay

The decree of 25 March 2020 replaces the flat short-time work allowance with a proportional allowance paid to employers, equal to 70% of the employee's gross hourly pay, capped at 4.5 times the hourly minimum wage, with a floor of €8.03 per hour. It applies to hours not worked since 1 March 2020.

Measure originators

InitiatorGVT

Muriel Pénicaud

Gouvernement

Impact on public finances

Costs 24 bn € (one-off)total cost of the scheme · 2020 estimate · Several administrations

Source of the estimate: Projet de loi de finances rectificative pour 2020 n° 2820, exposé général (Indirect official figure)

A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.

Effective date

26 March 2020

Measure impact

Employers placing staff on short-time work were reimbursed 70% of gross pay for hours not worked (up to 4.5 times the minimum wage), for hours since 1 March 2020.