It has been published on 30 July 2012 that, within the framework of its examination of the country’s second 2012 supplementary finance bill, the French Senate has abolished the tax exemption applicable to overtime hours in France, a measure symbolic of the former French President’s motto ‘work more to earn more’.
In accordance with the provisions contained in the bill, the exemption from social contributions for overtime hours will be abolished from September 1 and the exemption from income tax for overtime hours will end on August 1.
Under government plans, the employer contributions exemption will be maintained for companies with fewer than 20 employees.
The bill was presented to the Council of Ministers on July 4, adopted during a first reading by the French National Assembly on July 19, and is due to be adopted by the French Senate shortly.
