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Contributions and social contributions
General reduction in employer contributions: what changes as of January 1, 2026?
Publié le 12 septembre 2025 - Directorate of Legal and Administrative Information (Prime Minister)
Already amended in 2025, the general reduction in employer contributions will be reformed in 1er January 2026. Explanations.
The Social Security Financing Act for 2025 foresaw several changes for 2026 regarding the general reduction of employer contributions, namely:
- the abolition of the reduction in the rates of employer contributions for sickness insurance and employer contributions for family allowances;
- modification of the general reduction of employer contributions.
This redevelopment is specified in a decree of September 4, 2025. It will apply to contributions and contributions due in respect of periods of current activity from 1er January 2026.
New formula for calculating the reduction coefficient
From 1er in january 2026, the formula used to calculate the reduction coefficient will be:
T min + (T delta x [(1/2) x (3 x gross annual minimum wage / gross annual remuneration-1)] P)
T min : 0,0200 (minimum exemption threshold of 2 %)
T delta : 0.3773 (for employers liable for Final 0,10 %) or 0,3813 (for employers liable for the final payment of 0,50 %)
P-value : 1.75
In addition, the maximum value of the coefficient will increase following the abolition of reductions in employer contributions for sickness insurance and family allowances. It will be from 0.3973 for employers liable for the 0,10 % final and 0.4013 for employers liable for the final payment at 0,50 %. It is equal to the sum of the T min and T delta.
An enlarged perimeter
In order to compensate for the disappearance of reductions in employer contributions for sickness insurance and family allowances, the scope of application of the general reduction in employer contributions will be extended.
Currently, this reduction applies only to wages below 1.6 times the Gross minimum wage.
As of 2026, it will concern salaries below 3 times the gross minimum wage.
A degressive reduction
The aim of this reform is to encourage the increase of the lowest wages.
Thus, this new general reduction in employer contributions will:
- a maximum reduction in the Smic ;
- a decreasing reduction above the SMIC up to its ceiling of 3 SMIC (i.e. from 1 801,80 €/month to 5 405,40 €/month).
Example :
For a paid employee €1,900/month, or €22,800 over the year (working 35 hours a week and whose employer is liable to the Final 0.50%)
General reduction coefficient of employer contributions: 0.0200 + (0.3813 x [(1/2) x (3 x 21,621.60) / 22,800-1] 1.75) = 0.3469
Reduction of employer contributions over the year : 22,800 x 0.3469 = €7,909.32
Example :
For a paid employee €5,000/month, or €60,000 over the year (working 35 hours a week and whose employer is liable to the Final 0.50%)
General reduction coefficient of employer contributions: 0.0200 + (0.3813 x [(1/2) x (3 x 21,621.60) / 60,000-1] 1.75) = 0.0220
Reduction of employer contributions over the year : 60,000 x 0.0220 = €1,320
Summary table
Reductions | Currently | At 1er January 2026 |
|---|---|---|
General reduction of employer contributions |
|
|
Reduction in the rate of the employer's health insurance contribution | 7% reduction (capped at 2.25 Smic) | Deleted |
Reduction in the rate of the employer's contribution to family allowances | Reduction of 3.45% (capped at 3.3 Smic) | Deleted |