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24/06/2013 PROFILE > Chef d'entreprise , Service administratif et financier , Service comptable

Effective entry of the tax increase on short term temporary contracts

The Employment Security Law making provision for a tax increase on short-term temporary contracts will be effective as at 1 July 2013. From the current rate of 4% of unemployment insurance contributions, the tax levied will increase to 7% for temporary contracts of less than one month, and 5.5% for temporary contracts from one to three months, and 4.5% for those of less than three months. Two instances will be exempt from this tax: when the employee is recruited on a permanent contract following the temporary contract, as well as seasonal employees and contracts replacing an absence. In order to measure the effects of this measure, a report will be issued by the government by the latest 1 July 2015.
Read the entire text of law no. 2013-504 of 14 June 2013 pertaining to employment security, by clicking here. Article 11 concerns the increase of the tax rate.