Overtime and redemption of RTT days: flat-rate deduction of contributions for employers of 20 to 249 employees

Perpetuation of the system of flat-rate deductions of employers' contributions on overtime

The law on emergency measures for the protection of purchasing power of 16 August 2022 had only set 1^er in october 2022, any overtime worked by employees was eligible for a flat-rate deduction of employers' contributions (set at €0.50 per extra hour). This was applicable to companies employing between 20 and 249 employees.

The 2023 Law on Financing Social Security enshrines this provision in the Social Security Code and aligns its terms with those of flat-rate deductions for companies with fewer than 20 employees. Thus, the flat-rate deduction is now set off against contributions due in respect of the total remuneration of the employee paid at the time of payment of the additional working time (it was previously set off against sums due by employers to recovery agencies in respect of wage increases paid at the time of payment of the additional working time).

This amendment applies retroactively to overtime contributions made on or after 1^er october 2022.

Application of the flat-rate deduction of employer's contributions on overtime to the redemption of RTT days

The amending budget of 16 August 2022 introduced a scheme to buy back RTT days and half days. This device relates to the RTT days acquired from 1^er January 2022 to December 31, 2025.

Until now, only employers with less than 20 employees could benefit from the flat-rate deduction of employers' contributions on overtime for this scheme.

The 2023 Social Security Financing Law stipulates that the remuneration paid to employees following the redemption of RTT days is now eligible for companies with between 20 and 249 employees, for the benefit of the flat-rate deduction of employers' contributions on overtime.

Maintenance of the flat-rate deduction for each day of rest renounced by the employee

These companies also benefit from a flat-rate deduction which is applicable for each day of rest which an employee covered by a flat-rate agreement renounces in days out of the year. These are the days worked beyond the 218 days per year provided for in the Labor Code. This deduction amounts to €3.50 per additional day worked.

To qualify for this two deduction, you must:

• comply with legal and contractual provisions relating to working hours;
• remunerate the overtime worked by an amount at least equal to that of one hour without pay.

Finally, the Urssaf indicated that a document proving the correct application of these rules is to be handed over to the Urssaf agents in charge of the control and that the flat-rate deduction of employers' contributions of companies with between 20 and 249 employees must be declared with the personnel model code (PTC) 005.