The 2025 Social Security Financing Act included 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 reorganization, specified in a decree of September 4, 2025, applies to contributions and contributions due for periods of activity running since 1^er January 2026.

New formula for calculating the reduction coefficient

Since 1^er in january 2026, the formula used to calculate the reduction coefficient is:

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 : 0.3781 (for employers liable for Final 0,10 %) or 0,3821 (for employers liable for the final payment of 0,50 %)

P-value : 1.75

Gross annual minimum wage : €21,876.40

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 0.3981 for employers liable for the 0,10 % final and 0.4021 for employers liable for the final payment at 0,50 %. It is equal to the sum of the T _min and T _delta, according to the established formula.

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.

Previously, this reduction applied only to wages below 1.6 times the Gross minimum wage.

Now it's for wages below 3 times the gross minimum wage.

A degressive reduction

The aim of this reform is to encourage the lowest wage earners to increase.

Thus, this new general reduction in employer contributions allows:

• a maximum reduction in the Smic ;
• a decreasing reduction above the SMIC up to its ceiling of 3 SMIC (i.e. from 1 823,03 €/month to 5 469,09 €/month).

Summary table