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The law on emergency measures to protect purchasing power, passed in August 2022, includes a particular provision to lower social security contributions for self-employed people beginning on October 1, 2022. This move is designed to help reduce the financial burden on self-employed individuals while also encouraging entrepreneurship.
Emergency steps to safeguard purchasing power
CONTRIBUTIONS APPLIES BASED ON YOUR REPORTING
This reduction in self-employment social security contributions applies based on your reporting frequency, as follows:
– Monthly: beginning with the declaration of your turnover for the month of October 2022, which will be available online on November 1, 2022.
– Quarterly: beginning with the declaration of your turnover for the fourth quarter of 2022, which will be published online on January 2, 2023.
On August 16, a new law protecting people’s purchasing power was passed. Several aspects in the statute favor employees and self-employed workers, including a bonus granted at the discretion of the employers. The incentive is not designed to be a one-time payout, but rather to last over time in response to changing situations.
Companies will be authorized to give up to 3,000 euros in bonuses to their employees from July 1, 2022 to December 31, 2023. If a profit-sharing agreement is in place, the maximum bonus is 6,000 euros. Within these limits, the premium will be excluded from social security contributions. Employees earning up to three times the minimum wage will also benefit from an income tax exemption.
The Premium will be open to all employees and exempt from social security contributions beginning in 2024, but the income tax exemption will be phased out. The premium may be paid in one or more installments, but the number of payments is limited to once every quarter to prevent it from replacing salary increases.
THOSE EARNING LESS THAN THE MINIMUM SALARY WILL NO LONGER BE REQUIRED TO PAY ANY CONTRIBUTIONS
In France, self-employed people will get a yearly reduction in social security contributions of around 550 euros for those earning the minimum wage. Those earning less than the minimum salary will no longer be required to pay any contributions.
For leases concluded with small and medium-sized businesses, the revaluation of commercial rentals has been limited to 3.5% for one year.
Companies can now set up a collective incentive by unilateral decision if it is not covered by an approved branch agreement. This clause applies to businesses with less than 50 employees.
This means that enterprises in this category will be able to save money by establishing a collective incentive. This is a fantastic chance for small and medium-sized businesses to cut costs and enhance their bottom line.
Restaurant vouchers can be used until the end of 2023 for all food products, whether or not they are directly consumable.