Creation of the general reduction in employer contributions on low and middle wages ("Fillon reduction")

The Act of 17 January 2003 replaces, for pay from 1 July 2003, the tapered rebate on low wages and the 35-hour week relief with a single reduction in employer social security contributions (Article L. 241-13 of the Social Security Code), calculated on the hourly wage. Ultimately (1 July 2005), the maximum coefficient is 0.26 at the minimum wage and falls to zero at 1.7 times the minimum wage. During the transition, employers already receiving the 35-hour relief apply a 0.26 coefficient up to 1.7 times the monthly pay guarantee converted to an hourly rate; others apply 0.208 (phase-out at 1.5 times the minimum wage) from 1 July 2003, then 0.234 (phase-out at 1.6 times) from 1 July 2004.