Tax exemption for overtime: the ceiling could increase


Margaux Fodere
changed to

6:42 a.m., July 13, 2022

Examination of the amending finance bill for 2022 will begin on Wednesday July 20 at the Assembly. And a week from the discussions, the text welcomes a last minute amendment, tabled by the Renaissance group. It aims to raise the tax exemption ceiling for overtime. A measure that should restore purchasing power to the French.

Examination of the amending finance bill for 2022 will begin on Wednesday July 20 at the Assembly. And a week from the discussions, the text welcomes a last minute amendment, tabled by the Renaissance group. It aims to raise the tax exemption ceiling for overtime. A system already in place in the past, before being withdrawn and then reintroduced by the government of Emmanuel Macron. While the French face rising prices since the beginning of the year, this measure should restore purchasing power to employees.

A new ceiling at 7,500 euros

Today, when you work overtime, you are not taxed on the first 5,000 euros that these hours earn you. With the amendment tabled on Saturday by Renaissance, this ceiling increases to 7,500 euros. A real gain in purchasing power, since for employees who work overtime, it’s more tax-free income.

A cost of 50 million euros per year

If the amendment is adopted, the measure would cost the state only 50 million euros per year, according to the majority group. This is much less than the system put in place by Nicolas Sarkozy in 2007, which deprived the state of 4.5 billion euros per year. Why such a difference ? While the 2007 device disappeared charges for everyone, it only targets employees, when declaring their income.

This measure would therefore result in an advantage for employees, but not for companies.


Fr

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button