Income tax exemption cap on overtime pay raised from €5,000 to €7,500
Article 4 of the amending finance law of 16 August 2022 raises from €5,000 to €7,500 a year the cap on the income tax exemption for pay for overtime and additional hours (article 81 quater of the General Tax Code). The measure applies to hours worked from 1 January 2022. It comes from three identical amendments by the National Assembly finance committee, Laurent Marcangeli (Horizons) and Véronique Louwagie (Les Républicains).
Measure originators
No official estimate found for this measure.
Measure impact
Employees who work a lot of overtime can receive up to €7,500 net a year of overtime pay free of income tax, against €5,000 before. The cap applies from 2022 income. Exempt sums remain included in the reference taxable income.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
President of the Republic signature
Publication au Journal officiel
Possible referral to Constitutional Council
Décision de conformité / censure partielle
Debate and vote
National Assembly has the final say
Si échec CMP
Joint committee
Désaccord éventuel
Debate and vote
Debate and vote
Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration