THE FIGURE
€21.4 billion – this is the amount of savings proposed by the Court of Auditors in its report dated April 14, 2025, equivalent to the amount needed to offset the funding of new measures and to comply with the planned trajectory of ONDAM (National Objective for Healthcare Insurance Spending).
UPDATES
➤ General reduction of employer contributions As a continuation of the reforms introduced by the 2025 Social Security Financing Law regarding the general reduction of employer contributions (see RGCP), the decree dated April 4, 2025, clarifies the terms of application. In summary:
- it is specified that the SMIC (minimum wage) amount to be used in the RGCP calculation formula is that applicable on January 1, 2025 (€11.88/hour, excluding Mayotte), and not that of January 1, 2024, as may have been assumed;
- the floor of the AT/MP (workplace accidents/occupational illnesses) contribution eligible for reduction is set at 0.50 percentage points for 2025 (compared to 0.46 in 2024). This portion represents the pooled part of the contribution, considered as non-reducible;
- th
- e "T" parameter, used in the RGCP calculation, is modified for remuneration paid for employment periods from May 1, 2025 onward (new: 0.3193 vs 0.3194 for companies with fewer than 50 employees, and 0.3233 vs 0.3234 for companies with 50 or more employees).
➤ BOSS UPDATES
General reduction of employer contributions In its update of April 10, 2025, the BOSS provides operational clarifications:
- Adjustment/annualization of RGCP: Two methods are validated by
the administration to account for the change in the "T"
value during the year:
- Method 1: splitting the year into two periods with the applicable "T" parameter applied to each, as if these were separate employment contracts;
- Method 2 (for 2025 only): annualization over the full year with a weighted average "T" rate.
- Regarding the PPV included in the RGCP calculation formula: PPV
amounts paid or allocated to a savings plan from January 1, 2025,
are included in the base of the general reduction (both coefficient
and amount).
- As a tolerance measure, PPVs paid to employees who left before March 1, 2025, may be excluded from the calculation.
➤ Reduction in employer contribution rates for health insurance and family benefits
- The "exit thresholds" applicable to rate reductions
for health insurance ("band 1") and family benefits
("band 2") are set at:
- 25 × SMIC and 3.3 × SMIC respectively, based on the SMIC in force on January 1, 2025.
- As a tolerance measure, the former thresholds (respectively 2.5 and 3.5 × SMIC, as of December 31, 2023) may be maintained for employees whose contracts ended before March 1, 2025.
➤ Exemption for apprenticeship contracts, overtime, and additional hours Several clarifications were provided:
- For apprenticeship contracts concluded from March 1, 2025, the portion of pay exceeding 50% of the SMIC is subject to CSG, CRDS, social contributions, and payroll tax (if applicable) (see fact sheet on "Apprenticeship Contract Exemption");
- This change reduces the exemption ceiling to 50% of the SMIC, thereby expanding the base for the reduction applicable to overtime and additional hours, calculated in proportion to their share of total pay (see "Overtime and Additional Hours" fact sheet);
- Lastly, the BOSS update remains silent on any possible application of the forfait social to apprentice pay; thus, unless otherwise stated, previous rules continue to apply.
➤ Pro-rata of the social security ceiling for corporate officers The BOSS outlines how the social security ceiling should be prorated in the specific case of corporate officers, especially when their status is combined with an employment contract. It specifies the general rules:
- All remuneration received under each status must be aggregated;
- The ceiling is applied first to remuneration under the employment contract.
Further details are provided for particular situations (e.g., part-time contracts; unpaid leave; mid-year entry or exit of the officer).
THE COURT HAS RULED ...
➤ Long-distance travel allowance In this case, within the scope of "long-distance travel," a company:
- paid rent directly on behalf of employees on assignment;
- deducted an equivalent amount from their wages as reimbursement;
- paid a lump-sum allowance per night, higher than the rent, to compensate for the travel.
URSSAF reassessed the difference between the rent and the lump-sum allowance, claiming that the company failed to prove that the allowance compensated for additional meal and lodging costs.
The Court of Cassation disagreed, reaffirming that employees on assignment are "necessarily exposed to additional incidental costs," so the lump-sum travel allowance, when paid within the legal limits, is presumed to meet its intended purpose and therefore excluded from the contribution base. (Cass. Civ. 2nd, April 10, 2025, No. 23-10.593)
➤ Mobility contribution
In this case, female employees of an association:
- were listed in the single personnel register kept at the association's head office;
- worked daily at a site outside the contribution area of the head office;
- traveled to the head office only occasionally, about once every two months.
The association applied the mobility contribution rate applicable to their actual work location, not the rate for the head office.
URSSAF reassessed the contribution, arguing that since the employees occasionally traveled to the head office, they could not be considered as permanently working elsewhere.
The Court of Cassation overruled this, stating that these employees could indeed be regarded as working elsewhere, regardless of occasional visits to the head office.
(Cass. Civ. 2nd, April 10, 2025, No. 23-12.284 – unpublished ruling) Note: the scope of this decision should be interpreted cautiously, as it is a case specific, unpublished ruling.
WORK IN PROGRESS
➤ Pension Reform Talks
During their seventh meeting on April 10, 2025, social partners finalized their roadmap with three key objectives:
- Restore the financial balance of the pension system, examining funding across all branches of Social Security;
- Reinforce joint governance of the system;
- Reopen discussions on retirement age, contribution duration, solidarity mechanisms, and improving senior employment rates.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
