EXEMPTION OF EMPLOYERS’SOCIL SEXURITY CONTRIBUTIONS: PRINCIPLES AND DEFINITION
in the urban free zones
1. Employees that are exempt of employer’s social security contributions
All employees of the company, whatever their hire date, up to 50 employees.
2. The conditions for the exemption of employers’ social security contributions
Employees may be employed exclusively in the free zone or may operate outside the establishment under certain conditions.
3. The procedure
Local hiring clause: From the 3rd hiring that qualifies for the exemption, the company must have at least 1/3 employees residing in the urban free zones.
Conclusion of a:
- Permanent contract
or
- Term contract of at least 12 months
Specific hiring declaration to be sent to URSSAF within 30 days of hiring.
Declaration by the employer of the amount of remuneration exempted on a line provided for this purpose in the summary statement of contributions.
4. The assistance provided
Exemption for 5 years of employers’ expenses on the fraction of remuneration up to and including 1.4 SMIC (French minimal wages) (social insurance, industrial accident, family allowance, transport payment and FNAL).
Partial exemption of social contributions at the end of the period of total exemption for 3 years or for 9 years depending on the size of the company.
Remaining payments:
• Social insurance wage share
• CSG, CRDS,
• Assedic
• Complementary pension
For contracts concluded from 1 January 2009, the Budget Act for 2009 introduces a decreasing aid mechanism when gross hourly remuneration exceeds 1.4 SMIC to cancel out 2.4 SMIC in 2009 (2.2 SMIC in 2010, then 2 SMIC as from January 2011). The law removes the degressive exit device from the exemption.
The application of this system is subject to the publication of a decree fixing the scale of decrease.