Tax increaseEndedEmployment and contributionsNational

Higher employer unemployment insurance contribution on short fixed-term contracts and exemption for hiring young people on permanent contracts

On the basis of Article 11 of the Act of 14 June 2013 on job security, the amendment of 29 May 2013 to the unemployment insurance agreement, made binding by an order of 17 July 2013, modulated employer contributions. The employer share, normally 4%, rose to 7% for fixed-term contracts for increased activity of one month or less, 5.5% for those of more than one month and up to three months, and 4.5% for customary fixed-term contracts of three months or less (excluding seasonal jobs). Hiring a person under 26 on a permanent contract exempts the employer from its share for three months (four months in companies with fewer than 50 employees), provided the contract continues beyond the trial period.

Measure originators

InitiatorGVT
Michel Sapin
Gouvernement
Impact on public finances

No official estimate found for this measure.

Effective date
1 July 2013

Measure impact

According to Unédic, the surcharge was expected to raise €150-200 million a year and the exemption to cost a similar amount, with an overall neutral effect on the scheme. It applies to contracts starting on or after 1 July 2013.

Official references

Law number: Arrêté du 17 juillet 2013 (avenant du 29 mai 2013) ; loi n° 2013-504, art. 11
Official Journal: JORF n° 0172 du 26 juillet 2013, texte n° 36

Procedure timeline

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

100%
2 / 2 steps
Completed
26 July 2013

Publication in Official Journal

Publication
Publication au Journal officiel de l'arrêté du 17 juillet 2013 agréant l'avenant du 29 mai 2013, pris sur le fondement de l'article 11 de la loi n° 2013-504 du 14 juin 2013.
Completed
1 July 2013

Entry into force

Application

Immédiate ou à la date prévue

Avenant applicable aux contrats prenant effet à compter du 1er juillet 2013, quelle que soit leur date de signature.