The government and the elected representatives of the majority are on the verge of finding common ground on an issue that divided them: reductions in employer contributions. As part of the examination of the Social Security financing bill (PLFSS) for 2024, which is due to begin on Tuesday October 24, in session at the National Assembly, the Renaissance group, led by MP Marc Ferracci, will defend an amendment which fundamentally reworks the calculation of exemptions from contributions. One of the goals of the measure, resulting from a compromise, is to contain the cost of a system which has tended to spiral out of control for two years.
The debate between the executive and its majority emerged following a report that Mr. Ferracci recently produced with his socialist colleague from Essonne Jérôme Guedj. In this document, made public on September 19, the two parliamentarians recommend putting an end to the reductions in family contributions from which employers benefit for salaries between 2.5 and 3.5 minimum wage. These reductions have repercussions ” nearly “ non-existent on employment and “difficult to detect on competitiveness” companies, write Mr. Ferracci and Mr. Guedj, drawing on several studies conducted by economists.
If implemented, the proposal of the two deputies would bring to the “Secu” approximately 1.5 billion euros in new revenue. The elected Macronist wants this windfall to be re-injected into exemptions from contributions on low salaries (between 1 and 1.64 minimum wage), because these facilitate hiring. During the debates in committee on the PLFSS, he made an amendment along these lines which was adopted on October 18.
But the idea of eliminating these exemptions from contributions on high salaries dissatisfies Medef. “This is heading straight towards a negative shock to competitiveness”, he denounced in a press release released on October 20, citing, in particular, the increase in labor costs for companies exposed to international competition. According to the organization chaired by Patrick Martin, the industry would be the first to pay the price.
Reluctance
The arguments of the employers’ movement are taken seriously by the executive – particularly at Bercy. The Minister of the Economy, Bruno Le Maire, is for maintaining the reduction in charges, because ” that works “, he declared on October 17 on BFM Business. In the entourage of Thomas Cazenave, the Minister for Public Accounts, we also express reluctance, because the end of the exemptions could have “a very significant impact, particularly for economic sectors” where the share of qualified labor, with high salaries, is significant.
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