Flat-Rate Deduction of Employer Contributions on Overtime for Companies with 20 to 250 Employees
Purpose of the scheme: Allows companies to deduct part of employees’ overtime from their employer contributions. Beneficiaries mentioned: employers with 20 to 250 employees whose employees are eligible for the general reduction: employers required to contribute to unemployment insurance; industrial and commercial public establishments (EPIC) of local authorities; semi-public companies in which these local authorities hold a majority stake; national companies listed in the register of companies majority-controlled by the State (RECME); religious associations affiliated to the general scheme whatever their unemployment insurance status; public housing offices (OPH), including for staff who have kept local civil servant status; La Poste. Funding recorded: the flat-rate deduction of employer contributions is set at €0.50 per overtime hour. It can be combined with exemptions from employer social security contributions, within the limit of the employer contributions still due on the employee’s total pay. Before applying, check the rules in force, detailed criteria, timetable and cost basis with the funder.
The URSSAF page as at 1 January 2026 states that the 250-employee threshold has been removed. The catalogue title “companies with 20 to 250 employees” is therefore out of date and should not artificially narrow the current scope.
Funded by Ministère du Travail et des Solidarités
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Who can apply
Beneficiaries indicated in the catalogue: employers with 20 to 250 employees whose employees are eligible for the general reduction: employers required to contribute to unemployment insurance; industrial and commercial public establishments (EPIC) of local authorities; semi-public companies in which these local authorities hold a majority stake; national companies listed in the register of companies majority-controlled by the State (RECME); religious associations affiliated to the general scheme whatever their unemployment insurance status; public housing offices (OPH), including for staff who have kept local civil servant status; La Poste. Compare this information with the official page and check exclusions, size, legal form and area.
Eligibility conditions
Catalogue conditions: The flat-rate deduction applies if: the employer complies with the legal and contractual rules on working time (maximum weekly working hours, minimum rest periods between two working days, etc.); each overtime hour is paid at least as much as a non-increased hour; and overtime pay does not replace another element of pay (this condition is met if 12 months have passed between removing an element of pay and paying overtime). Check the current rules, criteria and exclusions before concluding on eligibility.
What the scheme covers
Operations indicated in the catalogue: Contributions on pay due for periods from 1 October 2022 are concerned. The reduction applies to overtime hours within the meaning of labour law, and to rest days given up, in return for increased pay, by an employee on a days-based working-time agreement beyond the limit of 218 days. Not eligible: additional hours worked by part-time employees. Check the eligible basis, exclusions, combination and when the application must be made.
Amount and funding terms
Since 1 January 2026, the flat-rate employer deduction is available to employers eligible for the single tapering general reduction (RGDU), whatever their headcount: €1.50 per hour for fewer than 20 employees and €0.50 from 20 employees.
How to apply
1. Consult the official page and the rules in force. 2. Confirm that the window or session is open. 3. Check the criteria, costs and caps. 4. Where a prior application is required, do not commit costs before the required application/approval. 5. Keep quotes, supporting documents and acknowledgements of receipt.
Timeline
A regulatory contribution measure: there is no call-for-projects date. Check the pay period, headcount, eligibility rules and the applicable payroll declaration (DSN).
Key facts
- Funder
- Ministère du Travail et des Solidarités
- Type of funding
- Tax exemption
- Status
- Ongoing
- Geographic scope
- All of France
Frequently asked questions
What is the purpose of the “Flat-rate deduction of employer contributions on overtime for companies with 20 to 250 employees”?
Allows companies to deduct part of employees’ overtime from their employer contributions.
Who may be concerned by this aid?
The catalogue mentions: employers with 20 to 250 employees whose employees are eligible for the general reduction: employers required to contribute to unemployment insurance; industrial and commercial public establishments (EPIC) of local authorities; semi-public companies in which these local authorities hold a majority stake; national companies listed in the register of companies majority-controlled by the State (RECME); religious associations affiliated to the general scheme whatever their unemployment insurance status; public housing offices (OPH), including for staff who have kept local civil servant status; La Poste. The criteria and exclusions in the current rules must be checked.
What amount or type of support is provided?
Since 1 January 2026, URSSAF states that the 250-employee threshold has been removed. The amount depends on the headcount: €1.50 per hour for fewer than 20 employees and €0.50 from 20 employees, under conditions.
Which costs or operations can be taken into account?
Contributions on pay due for periods from 1 October 2022 are concerned. The reduction applies to overtime hours within the meaning of labour law, and to rest days given up, in return for increased pay, by an employee on a days-based working-time agreement beyond the limit of 218 days. Not eligible: additional hours worked by part-time employees. Check the eligible basis and any requirement for a prior application.
Official source
No official URL is available in our data for this grant.
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