Contributions

Employers hiring people under CIE are entitled to exemption from social security contributions for illness, maternity, disability, death, and old age deductions. The exemption is applied to the part of the salary that does not exceed the SMIC. The part greater than the SMIC is then subject to the normal contributions based on the associated régime.

To manage work initiative contracts, assign the contract type IND or INE and social security code 956 (for normal cases) or 960 (for those over 50) to eligible payees on the Contract Type/Clauses page in PeopleSoft HR.

Note:

In Alsace-Moselle, use social security codes 957 and 961 instead.

The limit for the contribution exemption is equal to the hourly SMIC value multiplied by the number of paid hours.

For the CDD, the exemption is granted for a maximum of 24 months. For the CDI, the exemption is granted for 24 months. For payees over 50 years of age and some other specific categories, the exemptions are granted for the complete duration of their contracts.

At the end of the two years exemption limit, you must modify the social security codes at the payee level for payees under 50 years of age. Payees who were over 50 years of age when their contracts were signed are still entitled to exemptions after two years, so you do not need to change their codes.