In the context of the CAP reform proposals of October 2011, degressivity refers to the reduction of support that any individual farm can receive. The support payment will be reduced by 70% for the tranche €250 000-300 000; by 40% for the tranche €200 000-250 000, and by 20% for the tranche €150 000-200 000. The upper limit will be €300 000 per year (see capping). The greening payment is exempt from degressivity and is not included in the calculation of the tranche. In order to take employment into account, the holding can deduct the costs of salaries in the previous year (including taxes & social security contributions) before these reductions are applied.