The Union of Independent Businesses and Very Small Businesses (SDI) strongly opposes the reduction of payroll tax relief by decree.

The SDI announces that it will oppose any government decision that aims to change the labor costs of businesses, and in particular very small businesses, outside the legislative framework, without guarantees or explicit compensation.

According to Marc Sanchez, general secretary of the Union of Independent Workers and Very Small Businesses: “Changing labor costs by decree, without parliamentary debate, creates instability and directly weakens very small businesses, which are already under pressure.”

A decision by decree: an unacceptable method

For the SDI, reducing social security contribution relief through regulation would represent a break in approach and send a negative signal to local employers. These reliefs directly influence labor costs, hiring decisions, and the long-term viability of very small businesses.

For Marc Sanchez: "We cannot treat the cost of labor as an administrative or budgetary adjustment variable. These are decisions that affect employment, investment, and the survival of thousands of very small businesses."

An indirect threat to very small businesses and local employment

Contribution reductions are based on remuneration levels, not company size. Therefore, any overall reduction can have indirect effects on certain very small businesses, depending on their sector, organization, or salary structure.

Since very small businesses concentrate most of their employment in low and medium wages, any further questioning would pose an immediate risk to local employment.

For Marc Sanchez, general secretary of the SDI: "For a very small business, tax breaks are not a bonus, they are conditions for economic equilibrium. To tamper with them without guarantees is to risk hindering local employment."

A shared diagnosis, but very different realities

The SDI shares the observation that labor costs are high in France. However, very small businesses (TPEs) do not have the financial margins or the absorption capacity of large companies.

For very small structures, contribution reductions are a vital factor in economic balance.

For Marc Sanchez: "Small businesses don't think in terms of optimization, but in terms of economic survival. Any increase in labor costs has immediate effects on business activity and employment."

The real issue: the cost of labor and the financing of social protection

France devotes approximately 32% of its GDP to social protection, compared to an average of around 27% in the European Union. This funding relies primarily on contributions based on employment, which increases the cost of employment.

Conversely, Germany, Italy and Spain finance a significant part of their social protection through taxes, earmarked levies or mixed mechanisms.

For Marc Sanchez: "As long as social protection relies almost exclusively on employment, tax breaks will remain essential. The real debate is about their financing, not their elimination."

SDI Position

The SDI calls on the government to explicitly renounce any reduction in contribution relief decided by decree, to guarantee the stability of the social framework for very small businesses and to open a fundamental review of working time, the cost of labor and the financing of social protection.

For Marc Sanchez: "Weakening labor costs without parliamentary debate would be a major economic and social mistake."

Illustrative image of the article via Depositphotos.com.