Tax decreaseIn effectEmployment and contributionsNational

Flat-rate deduction for overtime extended to all companies

Extension to all companies with 20 or more employees of the flat-rate deduction from employer contributions of €0.50 per paid overtime hour.

Measure originators

InitiatorGVT

Bruno Le Maire

Gouvernement

General rapporteurDR

Thibault Bazin

Droite Républicaine

Amount

0.5 €/hour

Impact on public finances

Costs 150 m €/yr2026 estimate · Social security

Source of the estimate: Assemblée nationale – Commission des affaires sociales, compte rendu (PLFSS 2026), intervention du rapporteur général Thibault Bazin sur l'amendement AS1738 (Indirect official figure)

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

Effective date

1 January 2026

Measure impact

Since 1 January 2026, all companies with 20 or more employees receive a flat-rate deduction of €0.50 per paid overtime hour from employer contributions. The scheme was previously reserved for companies with fewer than 20 employees (at €1.50/hour). The extension aims to encourage the use of overtime rather than new hiring.

Official references

Law number: LFSS 2026

Sources

Editions Tissot - LFSS 2026 mesures entrées en vigueurAnalysis

1 January 2026

Procedure timeline

Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.

100%

2 / 2 steps

Completed

1 January 2026

Administrative implementation

Application

Entrée en vigueur de la mesure et mise en œuvre par l'administration

Entrée en vigueur de l'extension de la déduction forfaitaire heures supplémentaires à toutes les entreprises de 20 salariés et plus

Source

Completed

30 December 2025

President of the Republic signature

Promulgation

Publication au Journal officiel

Actors

Président de la République, Gouvernement

LFSS 2026 promulguée - Extension de la déduction forfaitaire de 0,50€/h pour les heures supplémentaires aux entreprises ≥ 20 salariés

Source