In 2026, some employees will cost companies much more, while others will allow them to save money.

Alongside the new features of the 2026 Social Security budget, a redesign of the employer exemption structure comes into effect on January 1st. And the impact on HR budgets will be far from marginal.

How will the system evolve?

Contrary to popular belief, the employer contribution rate is not 45% for all French salaries. Several mechanisms adjust this rate.

Today, the three main ones (excluding special cases) are:

1️⃣ General exemption from employer contributions: leads to a reduction of approximately 30 contribution points at the SMIC level, then a progressive reduction up to 1.6 SMIC.

2️⃣ Sickness benefit exemption: companies pay a 6% contribution on all salaries above 2.25 SMIC (i.e., an average gross monthly salary of €4054).

3️⃣ Family allowance supplement exemption: companies pay a 1.8% contribution on all salaries above 3.3 SMIC (i.e., an average gross monthly salary of €5946).

But all this is only valid until the end of 2025. Because in 2026, the rules of the game change!

Sickness benefit and family allowance exemptions are abolished, but the general exemption from contributions is modified, which will now apply to salaries between 1 and 3 times the SMIC.

In other words: the reduction in contributions will become much more progressive… but the financial impact will not be uniform:

➡️ Some remunerations will cost significantly more.

➡️ Others will become (a little) less expensive.

I offer an illustration of these increases and decreases in the attached infographic.

PS: And if you want to master HR mechanisms and their impact on company costs and employee gains, subscribe for free to my newsletter Un Coût d'Avance (link under my profile).

Have a good day everyone 👋