Flat-rate reduction in employer contributions on overtime hours (TEPA Act)

Article 1 of the TEPA Act creates a flat-rate deduction from employer social security contributions for each overtime hour worked from 1 October 2007 (Article L. 241-18 of the Social Security Code). Decree No. 2007-1380 sets it at €0.50 per hour, increased by €1 (i.e. €1.50) in companies with no more than twenty employees. A temporary €1 increase applies until 31 December 2008 to some companies with more than twenty employees. For employees on a days-based working-time arrangement, the deduction is seven times this amount per rest day given up.