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COVID-19: Social exemption for employers

FBA Social exemption for employers

The companies, even if they were able to benefit from the partial activity, suffered a heavy toll during the health crisis. In order to enable their recovery and restore their cash flow, many social measures are envisaged, but their implementation depends on certain conditions. See their details below.

> Exemption from employers’ social security contributions

Some employers enjoy total exemption from social security contributions (excluding supplementary pension contributions) depending on their sector of activity and their workforce:

  • Companies with fewer than 250 employees working in the tourism, hotel, catering, sports, culture, air transport and events sectors (for the period from 1 February to 31 May 2020) and those in sectors dependent on these sectors which have suffered a sharp drop in turnover.

These are the sectors that are eligible for aid from the solidarity fund (appendix 1 and 2 of decree no. 2020-371 of 30 March 2020).

  •  Companies with fewer than 10 employees carrying out an activity, involving the reception of the public, interrupted due to the spread of the covid-19 epidemic (for the period from 1 February to 30 April 2020).

Namely :

  • Companies with fewer than 250 employees, which do not benefit from these exemption measures and which have suffered a reduction in activity of at least 50%, may request a partial remission of up to 50% of their social security debts under the clearance plan.
  • Corporate officers who are not covered by unemployment insurance are not eligible for the measure. Only employees covered by unemployment insurance are eligible.
  • For remuneration received in respect of their corporate office, company directors benefit only from the contribution payment assistance scheme mentioned in II of Section 3.

> Assistance with the payment of contributions

The above-mentioned employers are entitled to assistance with the payment of contributions equal to 20% of the amount of income giving rise to the social exemption measure. The aid is payable on all social contributions (social security contributions, AGS, unemployment insurance, CSG, etc.) after application of any social exemption measure.

> Clearance plan

Employers for whom social security contributions would remain due on 30 June 2020 can benefit from settlement plans concluded with URSSAF.

Please note: Proposals for settlement plans are sent to companies with fewer than 250 employees before 30 November 2020. If the contributor does not object or request a change within one month, the plan is deemed to have been accepted.

There are many different types of aid available for companies, but they depend on the sector of activity and the number of people contributing to the scheme.

In addition, in order to fight against the spread of Covid-19, particularly in companies, we propose to display in your premises the visual that we have created for you, based on the French government’s communication: download the poster.

If you need further information, please contact us!

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