Monetization of RTT days
The company can buy RTT days until the end of 2025!
Publié le 02 novembre 2022 - Directorate for Legal and Administrative Information (Prime Minister)
This page has been automatically translated. Please refer to the page in French if needed.
Do you have working time reduction (RTT) days that you don't want to take? You want to be able to monetize them? Amending budget lawe for 2022 allows companies who wish to do so to buy back the days of RTT not taken by employees. This redemption is free of social contributions and income taxes up to a limit of €7,500. The Department of Labor has provided clarification in its recently published questions and answers.
Article 5 of the 2022 Amending Budget provides for a new way for your employer to buy back working time reduction (LTR) days, if he agrees. You can ask your employer to buy back all or part of the RTT days earned on 1er January 2022 to December 31, 2025.
This possibility, which derogates from the legal provisions, is available in all companies, irrespective of their number of employees, for a period of three years starting retroactively from 1er January 2022 to December 31, 2025.
The days or half-days of RTT worked are paid at the rate of the first overtime defined in the company, i.e. your hourly wage plus a minimum of 10%. However, the repurchased RTT days are not counted against your overtime quota.
The Ministry of Labor publishes a questions and answers on the redemption of rest days. Sixteen question-and-answer questions provide a better understanding of this system.
Employees and RTTs affected by the scheme?
The following are covered by this scheme:
- employees enjoying days or half-days of rest pursuant to a collective agreement or arrangement establishing a working time reduction scheme (RTT);
- employees who benefit from conventional rest days set up as part of an arrangement of working time for a period longer than one week (Articles L. 3121-41 to L. 3121-47 of the Labor Code).
However, this RTT day buy-back scheme does not apply to:
- to employees on a fixed daily basis. These employees already have the possibility to give up part of their rest days in return for an increase in their salary (minimum 10%);
- days or half-days of rest deposited in a time savings account (TSA);
- equivalent days of compensatory rest in lieu of overtime payments;
- on days or half-days of unpaid rest.
Exemption from social contributions and income tax
Remuneration paid to the employee is covered by the social and fiscal system of overtime. This income is exempt from social contributions and income tax, up to a maximum of €7,500. However, it is subject to CSG and CRDS and is included in the amount of the reference tax income.
Your possible overtime or additional hours are also counted in this ceiling of 7 500 €, under the same conditions.
The maximum exemption from social security contributions and tax is the same for employees in lump-sum days. With TECs or PERs, it is set at 10 days per year.
FYI : This arrangement is in addition to the other possibilities for payment of RTT days finally worked, always in agreement with the employer, which were previously reserved for employees:
- subject to the standard days;
- working in a company which has set up a time savings account (TSA) or a retirement savings plan (RSP);
- having been prevented by their employer from taking their RTT days.