Overseas employer contribution exemptions (Lodeom) refocused on low and middle wages
Article 10 of the Social Security Financing Act for 2016 lowered the thresholds and exit points of employer contribution exemptions applicable in the overseas départements. For example, for employers with fewer than eleven employees, the exemption remains total up to 1.4 times the minimum wage, is capped between 1.4 and 1.6 times, then tapers to zero at 2.3 times. An enhanced scheme is kept for certain sectors. The measure applies to contributions due from 1 January 2016.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
Overseas employers receive smaller exemptions on middle and higher wages. According to the impact assessment quoted by the Senate, the reform reduces by €75 million in 2016 the State appropriations that compensate for these exemptions.
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
President of the Republic signature
Publication au Journal officiel
Possible referral to Constitutional Council
Décision de conformité / censure partielle
Council of Ministers
Validation interne