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The Fillon device aims to reduce the charges on low and medium wages. Are all companies affected? Are the reductions the same for each employee? What are the points on which the employer must be vigilant?
What are the reliefs?
The so-called “Fillon” device aims to reduce the charges on low and medium wages. All companies are concerned, but the amount of the scheme varies according to the number of employees present in the company; the criterion being more or less than 20 employees.
The formula is as follows for a company with less than 20 employees: coefficient = (0.2802 / 0.6) x [1.6 x (amount of the SMIC calculated for one year, i.e. 17,599.40 euros / gross annual remuneration) – 1].
As for companies with more than 20 employees, the formula is as follows: coefficient = (0.2842 / 0.6) x [1.6 x (amount of the SMIC calculated for one year / gross annual remuneration) – 1] .
The employees targeted by the system are those whose remuneration is less than 1.820 times the minimum wage. The system concerns employers’ contributions, ie contributions paid for social insurance (old age, maternity, etc.) and family allowances.
The employer must ensure that he has not omitted a reduction to which he was entitled. The essential aspect of the device is that employees whose remuneration is less than 1.820 times the minimum wage fall within the scope of the reduction. Therefore, the employer must ensure that he has not included in the remuneration elements that must be excluded as provided for in the system: the remuneration paid for overtime (or additional) must not be taken into account, just as the remuneration paid for the break time for undressing and dressing should not be taken into account as soon as it is paid under an agreement or a collective agreement. Finally,
Société d’Avocats DAMY, Nice, corporate tax law – reduction of charges on low wages, Update 2022