Section 4: Degressive temporary allowance agreement

The agreements referred to in 2° of article R. 5111-2 may provide for the payment of a temporary degressive allowance to employees who have been made redundant for economic reasons and who have been redeployed in a job that pays less than their previous job.

Degressive temporary allowance agreements guarantee their beneficiaries, for a period not exceeding two years, payment of an allowance assessed at the time of recruitment and calculated on a flat-rate basis taking into account the difference between the average net salary received over the last twelve months in respect of the last job, excluding remuneration for overtime and bonuses and allowances not in the nature of additional pay, and the net…

The State’s contribution may not exceed 75% of the amount of the allowance, nor may it exceed a maximum amount per employee set by joint order of the ministers responsible for employment and the budget.