Short-time work: gradual reduction of employee compensation and employer allowance from summer 2021

Decrees No. 2021-671 and No. 2021-674 of 28 May 2021 set the timetable for phasing out the exceptional short-time work rates. In the general case, the allowance paid by the State to employers falls from 60% to 52% of gross hourly pay on 1 June 2021 and the compensation paid to employees falls to 60% of gross pay (about 72% of net pay) from 1 July 2021, the standard employer allowance then being 36% (rates set by Decrees No. 2020-1316 and No. 2020-1319 of 30 October 2020, whose entry into force had been postponed). In the sectors hardest hit by the crisis, the employer allowance is set at 60% in July then 52% in August 2021, before alignment with the general case in September. Establishments closed by administrative order or subject to restrictions, and those that lost at least 80% of their turnover, keep the allowance and compensation at 70% of gross pay until 31 October 2021. The hourly floor of the allowance is raised to €8.11 for long-term partial activity and for employers that lost at least 80% of their turnover.