Removal of the income tax and social contribution exemptions on overtime (TEPA law)

Article 3 of the second amending finance act for 2012 ends the overtime exemption scheme created by the 2007 TEPA law. The income tax exemption (Article 81 quater of the General Tax Code) is removed for hours worked from 1 August 2012. The reduction in employee contributions and the flat-rate deduction of employer contributions are removed for hours worked from 1 September 2012, except the employer deduction, which is kept for companies with fewer than twenty employees. An income tax exemption and a contribution reduction on overtime were reinstated in 2019.