Important

Update as of October 14
Details are provided concerning the capping of the Alsace Moselle health contribution.

In order to limit the economic consequences of the Covid-19 epidemic on business activity, the partial activity system (partial unemployment) has been modified *.
 

• The partial activity can be implemented without prior authorization from the Direccte:
  The request can be made to the Direccte within 30 days of the start of the partial activity.
  However, in order to take into account the volume of requests and exceptional circumstances, requests for partial activity authorization could be submitted by companies until April 30, 2020.
  Until September 30, 2020, the lack of response of the Direccte within 48 hours is worth a decision of agreement.
   
• The system has been extended to new categories of employee:
  • employees under private law of companies registered in the national directory of companies majority controlled by the State (RECME), public industrial and commercial establishments of local authorities, mixed economy companies in which these authorities have a majority stake, chambers of trades, chambers of agriculture, chambers of commerce and industry, France Telecom, companies in the professional branch of the electricity and gas industries and the Post;
  • employees under private law in public industrial and commercial establishments of the State, public interest groups and local public companies. The partial activity mechanism applies when these employers mainly exercise an industrial and commercial activity, the product of which constitutes the majority of their resources;
  • employees working in France for companies without an establishment in France, provided that their employer fulfills the obligations of declaration and payment of French social contributions and contributions (including unemployment insurance) to which he is required for any employment of employee;
  • employees on a day or hour package, to which the system also applies in the event of a reduction in the company's activity;
  • employees of private employers (on this point, consult our frequently asked questions Individual employers / home-based employees );
  • multi-card sales reps, freelancers.
     
• From 1 st  June to 31 October 2020, the conditions of management of the compensation for partial activity will be reviewed:
  • the compensation paid to the employee is unchanged: during the partial activity, he receives at least 70% of his gross remuneration (about 84% of the net salary), without this amount being lower than the net minimum wage .
    The employer receives an allowance calculated on the basis of 60% of the gross salary, withheld within the limit of 4.5 Smic.
    Employers in sectors subject to specific legislative or regulatory restrictions due to the health crisis will continue to benefit from coverage of 70% of gross remuneration within the limit of 4.5 minimum wage (decree no. ° 2020-810 of 29.06.2020). ;
  • the social system of the compensation paid to the employee and any balance paid by the employer is not changed (ie the social regime applicable to periods beginning on 1 st  May 2020).
     
• A new social system applies to partial activity indemnities paid to employees from non-working periods in March and until December 31, 2020.

The statutory partial activity allowance, i.e. 70% of previous remuneration, paid to employees is replacement income:

• it is not subject to social security contributions and contributions;
• it is subject to the CSG and the CRDS at the rate of 6.70% after deduction of 1.75%;
• beneficiaries of the local health insurance scheme for Bas-Rhin, Haut-Rhin and Moselle must pay an additional health contribution of 1.50%;
• persons domiciled outside France for tax purposes who are not liable for the CSG and the CRDS, and who are subject to a compulsory French health insurance scheme are liable for a health insurance contribution, the rate of which is set at 2, 80%;
• Mahorais employees are not liable to the CSG and CRDS, they must pay a health insurance contribution of 2.35%.

This social regime is also applicable:

• partial activity allowances paid to apprentices;
• and when the employer does not request the allowance reimbursing the partial activity allowance.

Contribution / Contribution

Plate

Rate

CTP

General case CSG - CRDS *

98.25%

6.20%
+ 0.5%

060

Alsace-Moselle health contribution

Totality

1.5%

079

Health contribution for tax non-residents in France

Totality

2.8%

454

Mayotte health insurance contribution

Totality

2.35%

471

The reduced rates and the exemption of CSG-CRDS do not apply, in respect of partial activity indemnities paid for periods of employment from March and until December 31, 2020.

The sickness contribution due by employees who are not residents for tax purposes in France, the CSG and the CRDS are capped, if this deduction has the effect of reducing the net amount of the allowance, possibly combined with an activity remuneration, below the minimum wage. gross.

The amount of the capping is to be declared on the deduction CTP 616: RR UNEMPLOYMENT RECEIPT corresponding to the totality of the amounts of CSG-CRDS and of health contribution due by employees who are not tax residents in France capped on unemployment benefits.

In the DSN , this CTP is associated with the qualifier 921 in item 21.G00.23.002 and valued as a “contribution amount” in item S21.G00.23.005: This amount must appear without a negative sign even though it will be deduct from the total amount of the declarant's contributions: it is in fact the CTP 616 which itself bears the negative sign.

The contribution to the local health insurance scheme in force in the Haut-Rhin, Bas-Rhin and Moselle departments is also affected by this capping device applicable in the event of partial activity under the same conditions.

The same is true for the health contribution for employees in Mayotte.

For Mayotte, the cut-off threshold is calculated with the value of the minimum wage in force locally.

CTP 616 should also be used for the capping declaration.

Calculation of the capping and withholding of social security contributions (CSG-CRDS, sickness contribution)

To calculate the cut-off threshold, a full-time gross minimum wage is taken into account regardless of the number of hours compensated for the partial activity.

The withholding tax is carried out in the following order of priority: deductible CSG, non-deductible CSG, CRDS and, where applicable, the health contribution under the local Alsace-Moselle scheme.

The clipping is therefore performed in the reverse order of priority.

Please note  : the amount of the deduction is limited to the amounts of contributions due over the period.

Payment of additional compensation beyond the threshold of 70% of gross salary

Period 1 st  March to 30 April 2020: The social system is also applicable to additional compensation paid by the employer under a collective agreement or a unilateral decision.

Periods from 1 st  May 2020 to 31 December 2020: When the sum of the statutory compensation for partial and complementary activity compensation paid by the employer under a collective agreement or unilateral decision is greater than 3.15 times the hourly value of the minimum growth wage, the portion of the additional allowance paid beyond this amount is subject to contributions and social contributions applicable to earned income under the conditions of law common.

If the partial activity is not declared in the DSN for the March 2020 period, it may be regularized in the DSN for the April 2020 period, without any Urssaf penalty .

For more information on the declaration, visit the dsn-info site .

Salary elements subject to social contributions and contributions

The elements of salary which remunerate a period of activity remain subject to social contributions according to the activity income system ( eg paid leave ).

Remuneration paid for teleworking days is income from activity subject to social contributions and contributions. It is not possible to benefit from the partial activity scheme for hours or days of teleworking.

Remuneration paid for the maintenance of salary for employees benefiting from sick leave is also earned income. The link between partial activity and daily sickness benefits is being clarified by the Ministry of Labor .

The sums paid for the compensation for non-compensable non-compensable hours in the event of partial activity remain subject to the conditions of common law.

Good to know

Consideration of the employee in the average monthly workforce
As with the common law regime of partial cessation of activity, the employee remains included in the workforce, the suspension of the employment contract has no effect in this regard.

Details on the calculation of the Social Security
ceiling The Social Security ceiling is reduced in proportion to the hours not worked or the days when the establishment is closed.

For a full-time employee

For a full-time employee whose working hours would be reduced by 50%, the ceiling would be: Monthly value of the ceiling x (75.8 / 151.67).

For an establishment that closes temporarily, the ceiling is determined as follows: monthly ceiling × number of calendar days the establishment is open during the month ÷ total number of calendar days in the month

For a part-time employee

• When the reduction in the working hours in respect of the compensated partial activity has no impact on the working hours of the part-time employee, the pro-rata “part-time” ceiling applies.
• When the reduction in the working hours in respect of the compensated partial activity has an impact on the working hours of the part-time employee, the pro rata of the “partial activity” ceiling applies.
• When the temporary closure of the establishment has an impact on the part-time activity of the employee, the two ceiling prorates apply.

Example 1

An employee usually works part time at 91 hours per month. The company decides to reduce the working hours by 50% due to compensated partial activity, for all employees, whether full-time or part-time. During the period of partial unemployment, the employee therefore only works 45.5 hours per month.

For this employee, the ceiling will be calculated as follows:
Monthly value of the ceiling x (working time applied during partial unemployment / legal or contractual duration if less).

For the month of March 2020, the cap would be 3,428 x (45.5 / 151.67) = 1,028.

Example 2

An employee usually works part-time 91 hours per month. The company decides to reduce the working hours by 20% due to partial compensated activity with reference to the 151.67 hour full-time working schedule. The working time of a part-time employee of 91 hours is therefore not reduced due to partial activity.

The pro rata part-time limit will continue to apply for this employee.

Example 3

An employee usually works part-time 91 hours per month. The company decides to maintain an activity for 5 days in the month of March 2020 and to close the establishment on the other days of the month for partial compensated activity.

For this employee, the ceiling will be calculated as follows: monthly ceiling × [number of calendar days the establishment is open during the month ÷ total number of calendar days in the month] × [(recorded working time + additional hours carried out over the month) ÷ legal or contractual duration if less]

For the month of March 2020, the ceiling will be 3,428 × (5 ÷ 31) x (91 ÷ 151.67) = € 332

* Reference texts:
Decree n ° 2020-325 of March 25, 2020 relating to partial activity
Ordinance n ° 2020-346 of March 27, 2020
Decree n ° 2020-435 of April 16, 2020 on emergency measures in matters of partial activity
Ordinance No. 2020-460 of April 22, 2020 laying down various measures taken to deal with the covid-19 epidemic
Questions and answers from the Ministry of Labor
Online sheet on the website of the Ministry of Labor
Decree No. 2020-1170 of September 25, 2020 amending Decree No. 2020-810 of June 29, 2020 temporarily modifying the hourly rate of the partial activity allowance