The Social Security Financing Act for 2025 amends a number of employer contribution reduction schemes. Here are the main changes to look out for. 1.
1. General reduction in contributions: new rules
Adjustment of eligibility thresholds
The reduction in contributions applies to salaries between 1.6 Smic and Smic plus 60 %. The precise value of the minimum wage for 2025 will be defined by decree.
Taking into account the Value Sharing Premium (VSP)
From 2025, the PPV will be included in the calculation of the coefficient and the amount of the reduction in employer contributions.
Consequences for employers:
- The PPV is added to gross annual pay to determine eligibility for the reduction.
- It is included in the basis for calculating the reduction.
- Even if it is placed in an employee savings plan, it is recorded in the accounts.
Risk :
If the addition of the PPV causes the threshold of 1.6 Smic to be exceeded, the company may lose all or part of the exemption for certain employees.
Modification of the reduction coefficient
In May 2025, the employer's contribution to unemployment insurance will rise from 4.05 % to 4 %, thus modifying the reduction coefficient. The value of «T» will be specified by decree.
2. Lower thresholds for certain exemptions
Employer's health insurance contribution
- Before 2025 : Reduction possible up to 2.5 Smic.
- From 2025 Reduction limited to remuneration between 2 and 2.25 Smic.
- From 2026 : Reduction abolished.
Employer's contribution to family allowances
- Before 2025 : Reduction possible up to 3.5 Smic.
- From 2025 Reduction limited to remuneration between 2 and 3.3 Smic.
- From 2026 : Reduction abolished.
3. Other measures affecting employers
Increase in contribution on free share allocations
- Currently Employer's contribution of 20 %.
- From 1 March 2025 Increase to 30 %.
New conditions for JEI and JEC
- Young Innovative Companies (JEI) R&D expenditure must represent at least 20 % of deductible expenses (compared with 15 % previously).
- Young Growth Companies (JEC) The range of eligible research expenditure is between 5% and 20 %.
Things to remember
The new rules on PPV and the lowering of the exemption thresholds could lead to a rising labour costs for certain employers. Anticipate these changes to adapt your remuneration strategy and optimise your tax and social security exemptions.
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