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Tax increaseIn effectSocial security and healthcareNational

Severance payments above ten times the social security ceiling subject to contributions and CSG from the first euro

Payments made on termination of an employment contract that exceed ten times the annual social security ceiling are treated in full as remuneration for social contributions and CSG-CRDS. Where an executive receives both forced-departure and contract-termination payments, the amounts are added together.

Measure originators

InitiatorGVT
Christian Eckert
Gouvernement
InitiatorGVT
Marisol Touraine
Gouvernement
Impact on public finances

No official estimate found for this measure.

Effective date
1 January 2017

Measure impact

Employees and executives whose termination payments exceed ten times the ceiling (about €392,000 in 2017): the whole payment becomes subject to contributions and CSG. Applies to terminations notified, and negotiated terminations submitted for approval, from 1 January 2017.

Official references

Law number: Loi n° 2016-1827 du 23 décembre 2016 (LFSS 2017), art. 14
Official Journal: JORF n° 0299 du 24 décembre 2016
View on Légifrance

Sources

Loi n° 2016-1827 du 23 décembre 2016 (LFSS 2017), article 14Official
24 December 2016

Procedure timeline

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

100%
3 / 3 steps
Completed
1 January 2017

Administrative implementation

Application

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

Entrée en application de la mesure.
Source
Completed
23 December 2016

President of the Republic signature

Promulgation

Publication au Journal officiel

Promulgation de la loi n° 2016-1827 de financement de la sécurité sociale pour 2017 (JO du 24 décembre 2016).
Source
Completed
22 December 2016

Possible referral to Constitutional Council

Constitutional review

Décision de conformité / censure partielle

Décision du Conseil constitutionnel n° 2016-742 DC sur la LFSS pour 2017.
Source