Lower continuing training contribution for employers with 10 to 19 staff and smoothed threshold effects

Article 3 of the Order of 2 August 2005 raising certain compulsory levy thresholds amends Article L. 951-1 of the Labour Code. Employers with 10 to fewer than 20 employees have their contribution to continuing vocational training reduced: the minimum share is cut by 0.55% of pay (0.65% for temporary work agencies) and compulsory payments are cut by 0.2% (0.3%) and 0.35% of pay. Employers crossing the 10-employee threshold for the first time remain at the under-10 rate for three years, then receive tapering reductions in the fourth and fifth years; crossing the 20-employee threshold also gives tapering reductions for two years. These provisions apply to the contribution due on pay from 1 January 2005. The Order repeals Article 235 ter EA of the General Tax Code.