In response to rising consumer price inflation — reaching 6.1% year-on-year as of July — the French Parliament passed measures to help protect individuals’ purchasing power, including several relating to employee benefits and compensation.
*Based on RTT (Réduction du temps de travail) agreements under which employees accrue paid time off (RTT days) based on hours worked exceeding the 35-hour workweek.
The bill received final approval and became law on August 16. The enhanced tax-favored bonus option — both the temporary basis through 2023 and the permanent version available to all employees from 2024 — presents planning opportunities for employers to reward and assist employees, though may result in higher labor costs. The option for employees to sell RTT days could be attractive to employers that want to reduce the amount of RTT days accrued by staff in return for increased employee working time.