Business

France — Business: Payroll

Total employer social contributions in France run approximately 42-45% of gross salary, covering health (13%), family allowance (5.25%), and pension (8.55%/2.11% split by threshold), plus smaller levies: housing (FNAL), transport (versement mobilité, varies by region), apprenticeship tax (0.68%), construction levy (0.45% for companies with 50+ employees), and CSA (0.3%). A major 2026 change: the réduction générale des cotisations patronales was restructured into a unified progressive reduction (RGDU), abolishing previous reduced rates for health (7%) and family allowances (3.45%) on lower-paid employees. The 2026 SMIC (minimum wage) is €1,823.03/month; the monthly social security ceiling (plafond) is €4,005. The employer contribution rate on rupture conventionnelle (mutually agreed termination) indemnities rose from 30% to 40% for all separations from 1 January 2026.

URSSAF / Hayot Expertise employer contribution rate tables · Last verified 2026-07-20

Key Facts

  • Total employer contributions: ~42-45% of gross salary (health 13%, family 5.25%, pension 8.55%/2.11%, plus smaller levies).
  • 2026 SMIC (minimum wage): €1,823.03/month; monthly social security ceiling: €4,005.
  • 2026 restructuring (RGDU) abolished the previously reduced health (7%) and family allowance (3.45%) rates for lower-paid employees.
  • Rupture conventionnelle employer contribution rate increased from 30% to 40% for separations from 1 January 2026.

Costs

  • Total employer social contributions: ~42-45% of gross salary
  • Rupture conventionnelle employer contribution (2026+): 40%

Common Mistakes

  • Budgeting for the old reduced health/family-allowance rates on lower-paid staff — these were abolished under the 2026 RGDU restructuring.
  • Underbudgeting termination costs after 1 January 2026 — the rupture conventionnelle employer contribution rose from 30% to 40%.

Related Topics

social-securityhiring-employees
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