Aid reductionEndedEmployment and contributionsNational

Urban free zones: employer contribution exemption made degressive above 1.4 times the minimum wage

Article 190 of the 2009 Finance Act amends Article 12 of the law of 14 November 1996 on the urban recovery pact. From 1 January 2009, the employer contribution exemption in urban free zones (ZFU) decreases linearly above an hourly wage equal to the minimum wage plus 40% and reaches zero at 2.4 times the minimum wage in 2009, 2.2 times in 2010 and 2 times from 2011. The same article postpones from 1 January 2009 to 31 December 2011 an end date set in section II bis of that article.

Measure originators

InitiatorGVT
Christine Lagarde
Gouvernement
InitiatorGVT
Éric Woerth
Gouvernement
Impact on public finances
Brings in 70 m €/yr2009 estimate · State
Source of the estimate: Sénat, rapport général n° 99 (2008-2009), annexe 32 « Ville et logement », examen de l'article 82 rattaché (Indirect 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 2009

Measure impact

Employers located in urban free zones lose part of the employer contribution exemption on wages above 1.4 times the minimum wage; the exemption ends at 2.4 times the minimum wage in 2009, 2.2 times in 2010 and 2 times from 2011. Wages up to 1.4 times the minimum wage remain exempt under the same conditions.

Official references

Law number: Loi n° 2008-1425 du 27/12/2008 de finances pour 2009, art. 190
Official Journal: JORF du 28 décembre 2008

Procedure timeline

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

100%
2 / 2 steps
Completed
1 January 2009

Administrative implementation

Application

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

Application du barème dégressif aux rémunérations à partir du 1er janvier 2009 (seuil de sortie à 2,4 SMIC en 2009, 2,2 en 2010, 2 à partir de 2011).
Completed
27 December 2008

President of the Republic signature

Promulgation

Publication au Journal officiel

Promulgation de la loi n° 2008-1425 du 27 décembre 2008 de finances pour 2009, publiée au Journal officiel le 28/12/2008.