Household employers: end of flat-rate declaration and €0.75 deduction per hour
The 2013 Social Security Financing Act removes household employers' option to calculate their home worker's contributions on a flat base equal to the minimum wage: contributions are now calculated on actual pay. In return, each hour worked gives entitlement to a flat deduction from the employer's health insurance contribution, set at €0.75 by Decree No. 2012-1565 of 31 December 2012. It applies to pay from 1 January 2013.
Measure originators
No official estimate found for this measure.
Measure impact
For households that used the flat-rate option, the cost of home employment rises, partly offset by the hourly deduction and by the tax credit or reduction for employing a home worker. The impact assessment put the yield from ending the flat rate at €475 million; according to the budget minister, the €0.75-per-hour deduction added during the debate cost about €210 million. No official net figure was published.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
Publication in Official Journal
President of the Republic signature
Publication au Journal officiel
Possible referral to Constitutional Council
Décision de conformité / censure partielle
National Assembly has the final say
Si échec CMP