For more information, please contact us at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

I - Tax exemption of overtime and supplementary hours

A) Conditionally income tax exemption:

- of the overtime hours worked over the 35 week-hours,

- of the supplementary hours worked by part-time employees,

- of the days worked over the 218 days a year.

B) Reduction of the employee contributions

The remuneration exempted from income tax by the TEPA law gives a right to a reduction of the employee contributions which:

- is equal or less than 21.50 % of the remuneration exempted from tax,

- is charged to the amount of the contributions owed for each employee,

- cannot exceed the total amount of these contributions.

C) Fixed deduction of the employers' contributions for the overtime hours

Condition: overtime hours whose remuneration comes into the area of application of the income tax exemption.

The supplementary hours worked by the part-time employees are excluded.

The deduction from the sums which must be paid by the employer to his URSSAF for each employee equals:

- 0.50 € a overtime hour for the companies with 20 employees or more on the 31/12/2006

- 1.50 € a overtime hour for the company with less than 20 employees on the 31/12/2006

Employees working yearly for a fixed number of days: the same fixed deduction per overtime hour is taken into account considering that 1 day is made up of 7 hours.

II - PRACTICALLY

New documents will have to be presented to the administration in case of an audit and the payslips will be modified.

III - IN SHORT...

From the 1^st of October 2007 the overtime hours linked to the change from 39 hours to 35 hours are fully subject to the 25% surcharge of the hour-rate (instead of the 10% tolerated until 2008 for the companies with less than 20 employees).