The 2024 Budget Law extended thereduction of employee’s social security contribution (the employee’s part). The contribution reduction for the whole of the next tax period is as follows:
- 7% if the annual taxable salary, calculated on a monthly basis, does not exceed €1,923
- 6% if the annual taxable salary, calculated on a monthly basis, does not exceed €2,692
Compared to the same facility in place in 2022 and 2023, in 2024 the monthly reference ceilings (€2,692 and €1,923) will have to be considered net of the accrual of the 13th month bonus. As a result, the total amount received for the thirteenth month does not need to be taken into account when quantifying the limit for eligibility for the exemption; correspondingly, the thirteenth month does not benefit from the contribution reduction (in 2023, the exemption for the thirteenth month was applicable).
Importantly, the actual applicability of the exemption has to be assessed on a pay period by pay period basis, so it will be possible to have alternating periods of varying levels of exemption or non-applicability depending on monthly income.
