Exemptions from social security contributions in rural revitalization areas (RRZs)

Verified 01 January 2024 - Legal and Administrative Information Directorate (Prime Minister)

A company located in Rural Revitalization Area (RRZ) may be exempted from employer charges when an employee is hired, under certain conditions. These conditions relate in particular to the company's staff, the type of contract signed and the activity.

A company may benefit from an exemption from social contributions if it complies with the following conditions:

  • It carries out an industrial, commercial, craft, agricultural or liberal activity
  • It has at least 1 establishment located in Rural Revitalization Area (RRZ)
  • It has a maximum of 50 employees
  • It is up to date with its obligations towards the Ussaf
  • She must not have made any economic redundancies during the 12 months preceding employment

The exemption does not apply to individual employers.

Exempt Contracts

Exemption from employer's charges shall apply to employees, whether full-time or part-time,

  • in DTA: titleContent
  • or CSD: titleContent at least 12 months.
Non-exempt contracts

Relief from charges shall not apply to the following contracts or situations:

  • CDD that replaces an absent employee (or whose employment contract is suspended)
  • Renewal of a CDD
  • Apprenticeship or professionalization contract
  • Business Manager or CEO

The exemption covers the following social insurance:

  • Sickness and maternity
  • Disability, death
  • Old-age insurance
  • Family allowances

It does not concern supplementary pension contributions, unemployment insurance, accidents at work, apprenticeship tax, CSG-CRDS.

The exemption from employer charges may last for 12 months.

The exemption is:

  • total up to 1.5 times the Smic (up to €2,650.38 monthly gross),
  • degressive between 1,5 and 2,4 Smic (i.e. between €2,650.38 and €4,240.60 monthly gross).

In the event of termination of the contract of employment due to resignation or incapacity, the remaining months of exemption may be used for the hiring of a new employee. This is within the exemption period.

Warning  

if the company relocates its business to a non-ZRR city less than 5 years after having benefited from the exemption, it must repay the exempted amounts (except in the case of force majeure).

Within 30 days of the effective date of the employment contract, the company must return the Cerfa No 10791 to DREETS.

Exemption from employer contributions for the hiring of up to 50 employees in RRZs

The company must send this form by registered letter with notice of receipt or by hand against receipt of a discharge.

DREETS sends its response within 3 months.

Where the declaration is made out of time, the duration of the exemption shall be reduced by the period between the date of recruitment and the sending or lodging of the declaration.

Example :

If the employee is hired on May 10, the exemption declaration must be sent on June 10. If the declaration of exemption is late and takes place on 20 June, the entitlement to the exemption is reduced by 10 days.

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