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The French Supreme Court confirms the exemption from social security contributions of the employer’s payment of childcare expenses

FSC. 29 May 2019, n°18-11436

In a decision commented by us (https://www.mgglegal.com/childcare-expenses-born-by-the-employer-are-exempted-from-social-security-contributions/), the Paris Court of Appeal had ruled that Ikea’s payment of childcare expenses for its employees did not constitute a salary and was therefore exempted from social security contributions.

This position has been confirmed by the French Supreme Court, which nevertheless sets that, pursuant to Article D.7233-8 of the French Labour Code, the exemption from social security contributions is valid only for the part of the payment not exceeding €1,830 per year and per employee.