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Tax decreaseIn effectEmployment and contributionsNational

Conversion of the CICE into a cut in employer social contributions

Conversion of the CICE (Crédit d'Impôt pour la Compétitivité et l'Emploi, tax credit for competitiveness and employment) into a permanent 6-point cut in employer social contributions on salaries up to 2.5 times the SMIC

Measure originators

InitiatorGVT
Bruno Le Maire
Gouvernement
General rapporteurEPR
Jean-René Cazeneuve
Ensemble pour la République
General rapporteurLR
Jean-François Husson
Les Républicains
Impact on public finances
Costs 20 bn € (one-off)2019 estimate · Several administrations
Source of the estimate: Sénat, avis n° 108 (2018-2019) sur le PLFSS 2019 (Official figure)

A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.

Effective date
1 January 2019

Measure impact

The CICE (a 6% tax credit on salaries up to 2.5 times the SMIC) is converted into a permanent 6-point cut in employer health insurance and family allowance contributions. 2019: double cost for the State (2018 CICE + new cut). Permanent annual cost: ~€20bn.

Official references

Law number: Loi de finances 2018

Sources

Loi de financement de la sécurité sociale 2018Official
30 December 2017

Procedure timeline

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

100%
2 / 2 steps
Completed
1 January 2019

Administrative implementation

Application

Entrée en vigueur de la mesure et mise en œuvre par l'administration

CICE transformation and permanent employer contribution reduction effective January 1, 2019
Source
Completed
28 December 2018

President of the Republic signature

Promulgation

Publication au Journal officiel

Actors
Parlement
Promulgation of LFI 2018 transforming CICE tax credit into permanent employer contribution reduction
Source