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Employer's contribution to the construction effort (CEIP): 1% housing

Verified 29 September 2021 - Directorate for Legal and Administrative Information (Prime Minister)

Employer Participation in the Construction Effort (CEP), also known as 1% housing scheme, is an investment directly paid by employers in employee housing. This obligation shall apply irrespective of the activity pursued or the legal form of the company. The CEEP is on the employees' pay slip.

The employer must pay the CEEP if the company meets the following conditions:

  • It has 50 or more employees
  • The number of employees remains at or above 50 for 5 consecutive years

Example :

One company employs more than 50 employees in 2021. If the workforce remains at or above 50 for 5 consecutive years (up to 2025), then it will have to pay the CEEP starting in 2026.

The calculation of the number of employees at 31 December of year N is based on working time.

Full Time

Each employee is counted for 1 unit.


Each employee shall be taken into account in proportion to the working time laid down in the employment contract.

Home/intermittent work

Each employee is counted for 1 unit.

The employer subject to the CEEP must devote at least a share of 0.45% of remuneration paid in year N-1 in the form of housing construction investments to be carried out before 31 December of year N.

The calculation of investments is based on the total amount of taxable remuneration and benefits in kind paid to staff in year N-1 (basis for calculating social security contributions). Examples of taxable remuneration are wages, employee contributions, bonuses, bonuses, allowances.

The employer's participation may take one of the following forms:

  • Direct investment in the housing of its employees. Examples include the construction of rental housing, the improvement of old buildings belonging to it, rented or intended to be rented to its employees.
  • Low-interest loans granted to employees to finance the construction of their principal residence, spouse or partner Civil partnerships: titleContent, their ascendants or descendants
  • Payment to an approved collecting agency (generally referred to as 1 % management body).

If the direct payments exceed the quota, the surplus may be carried over to subsequent years.

If the direct investment in construction by the employer is below the 0.45%, he must pay to the company Tax Service (SIE), a flat-rate contribution of 2%, calculated on the total remuneration of the previous year.

Declaration of participation due

Each year, the employer must declare the amount of the contribution due for the previous year, calculated on the remuneration paid in the year preceding the year for which the investments are to be made

Example :

In January 2021, the investments to be reported are those made before 31 December 2020, calculated on the basis of the remuneration paid in 2019.

This declaration shall be incorporated into the registered social declaration (DSN), made at the beginning of February of year N+1 or within 60 days of cessation of activity.

For employers covered by special social security schemes, the declaration shall be made by means of the declaration of salaries and fees no. 2460.

Payment of the contribution

The contribution due in the case of direct investments below the compulsory contribution must be paid to the EIS before 30 April each year accompanied by the payment slip no. 2485.