Following the publication of the Decree of April 4, 2025 in France, companies established in France will observe a change in the rates applicable as of May 1, 2025. In this way, the institutions aim to reduce employer contributions in the country.
Which contributions have been reformed?
Main changes introduced by the legal text will affect the following contributions: unemployment insurance, contributions for accidents at work and occupational diseases and overtime contributions.
Unemployment insurance
Regarding unemployment insurance contributions, a decrease of 0.05 points is expected at the standard rate. Consequently, from May 2025, the general contribution rate will be 4%. The diminution is applied correspondingly to the modulation scheme known as ‘bonus-malus’, with the new minimum rate established at 2.95% and the maximum at 5.05%.
Contributions to Social Security
Contributions to Social Security in terms of accidents at work and occupational diseases will be also modified from May 2025. The companies can inquire about the new applicable rates in their company account on net-entreprises.fr.
In addition, the application of the new rates won’t have retroactive effects on 2025, therefore the rates fixed for 2024 will continue to be applicable until April 30th, 2025.
Reform on overtime payments
On the other hand, the Decree introduces the amount of a flat-rate deduction of employer contributions for overtime. The reform fixes at the amount of 0.50 euros per overtime and applies only to companies with a headcount between 50 and 249 employees.
Reduction on employer’s contributions
Furthermore, new general reduction rates are planned for salaries that do not exceed the legal thresholds. The minimum wage has been revised for the purpose of determining rate reductions on sickness contributions and family allowances.
For fiscal year 2025, the eligibility ceilings and reduction rates will be the following:
* SMIC: Minimum Development Salary (Salaire Minimum de Croissance)
The update of social contributions in France modifies the payment of withholdings by companies. So, if you need a secure and efficient payroll management in France, do not hesitate to contact us.
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All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.