Spontaneous application

End of the CICE = transfer to tax deduction in 2019

New Insight
17 October 2018
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The social security financing bill for 2019 was presented to the press on September 25, before its presentation in the Council of Ministers.

During this presentation the government confirmed that the CICE will be cancelled as from 2019 and replaced by a reduction in employer contributions of 6% (article 9 of the Social Security Financing Act for 2018).

For reminder, the purpose of the CICE was to finance investment, research, innovation, training, recruitment, prospection of new markets, ecological or energy transition and rebuilding of working capital.

The Prime Minister announced the creation of a new relief for employers’ expenses:

  • as of January, a permanent 6-point reduction in the employer’s health insurance contribution (from 13 points to 7 points) for all employees covered by the general social security scheme applicable to wages within the limit of 2.5 Smic
  • from October 2019, an additional 4.1 points for salaries at 1.6 of the SMIC level.

In summary (and per information in hand as of today):

  • 6 points on wages below 2.5 SMIC;
  • supplemented by a 4.1 points improvement in SMIC (decreasing to 1.6 SMIC), for a total of 10.1 points.


Didier Hémion


Chartered Accountant

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