Exempt from income tax and social contributions tips paid to employees. The proposal of the Modem deputy of Yvelines, Jean-Noël Barrot, taken over by President Emmanuel Macron, was indeed validated by the National Assembly, Tuesday, October 12, in the 1st reading of the finance bill (PLF) for 2022. Elected officials voted to tax tips paid by bank card in 2022 and 2023, in particular for hotel and restaurant employees, a measure criticized by the left which calls for an increase in salaries.

In detail, are concerned “tips that employees receive, directly or indirectly from customers with whom they are in contact, during the years 2022 and 2023, on condition that the employees to whom these sums are remitted receive , for the calendar months concerned, remuneration not exceeding (…) the minimum growth wage increased by 60% “. Two main changes should be noted compared to the amendment adopted a week earlier in the Finance Committee. First of all, the duration of the tax exemption, extended from one to two years. Above all, and while the measure originally provided for limiting the exemption to 20% of the gross remuneration of the employee, that voted in the Chamber is confined to only employees receiving less than 1.6 Smic, or approximately 2,011 euros net.

Respond to recruitment difficulties in the restaurant business

With this amendment, the majority deputies want to materialize an announcement by President Emmanuel Macron at the end of September that “tips paid by credit card are free of charge for employers and tax-free for employees”. Adopted at first reading during the examination of the 2022 budget, this measure of “additional remuneration” is presented as a response to the “recruitment difficulties” of the hotel and catering industry and the “160,000 positions” unfilled, according to Jean -Noël Barrot.

Note that the system is not limited to this sector and concerns “salaried professions in contact with customers”. On the right, Eric Woerth (LR) regretted that the measure does not apply to all taxis, “because most are craftsmen”. It also does not apply to freelancers working for platforms like Uber or Deliveroo. On the far right, RN Sébastien Chenu contested a “false good idea”, which will “make the tip in cash disappear”. On the left, Eric Coquerel (LFI) accused the government of opening a “Pandora’s box” with a “message” to employers: “Pay your employees with this type of supplement!”. The “question is the low wages”, especially servers, in his eyes. The ex-LREM Emilie Cariou (not registered) considered “rather lamentable” the provision which makes “rest on the good will of each of the French people the capacity to better remunerate the employees”. For the center-right deputy Thierry Benoit (UDI), it should not be “made a cheese”, it is simply a “facility offered to customers and servers”.

The measure, which will still be debated during the rest of the parliamentary shuttle, affects all tips, but will apply de facto to those paid by bank card, since those in cash are not checked. It responds to the “growing increase in electronic and digital payments” at the expense of cash, usually more “conducive to the allocation of tips,” said Minister of Public Accounts Olivier Dussopt.


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