The Loi de Financement de la Sécurité Sociale pour 2025 (passed on February 28) and the Loi de Finances (passed on February 15) have introduced several major reforms to payroll and social security contributions.
Key measures include changes to exemptions for apprenticeship contracts, and an overhaul of general reductions in employer contributions, including the inclusion of the PPV in 2025.
This article describes the main changes affecting employers.
Please note that the official social security bulletin is awaiting clarification on certain points.
Apprentices: reduction in exemptions from employee contributions
Exemption from employee contributions is now limited to 50% of the SMIC (previously 79%).
Remuneration in excess of 50% of the SMIC is now subject to CSG/CRDS contributions.
These measures will apply to apprenticeship contracts signed on or after March1, 2025 (contracts signed before this date will continue to be governed by the previous system).
Reform of general reductions in employer contributions (RGCP)
The LFSS 2025 provides for a two-stage overhaul of general tax relief: a transitional phase in 2025 and the phasing out of certain schemes in 2026.
- In 2025, the thresholds for rebate eligibility will be lowered:
- reduction in the reduced rate of employers' health insurance contributions limited to wages ≤ 2.25 SMIC (previously 2.5 SMIC).
- reduction in the reduced rate of family allowance contributions limited to salaries ≤ 3.3 SMIC (previously 3.5 SMIC).
- From 2026, reductions in these contributions will be abolished and integrated into the general reduction in employer contributions (RGCP).
Integration of the Value Sharing Premium (VSP) in the calculation of the RGCP
The PPV (paid into or allocated to a savings plan) will be included in the basis for calculating the general reduction in employer contributions.
In concrete terms, this is a measure that is unfavorable for companies.
The amount of the PPV will reduce the reduction in employer contributions calculated for each eligible employee (remuneration below 1.6 SMIC).
This measure applies retroactively from January1, 2025 (except for employees leaving the workforce before March1, 2025).
Continuation and modification of the TO-DE exemption in the agricultural sector
The system of exemption from employer contributions for the employment of casual workers and jobseekers (TO-DE) in the agricultural sector has been extended and strengthened.
With effect from May 1ᵉʳ 2025, the total exemption ceiling is raised from 1.20 SMIC to 1.25 SMIC.
In addition, the scheme is now open to CUMAs and fruit and vegetable packing cooperatives.
Extension of exemptions for home-work travel expenses
The Finance Act extends, for the year 2025, the exemptions available to employers who pay up to 75% of their employees' public transport costs.
As a reminder, only season tickets (annual, monthly or weekly) are paid for by the employer.
Access to Young Innovative Company (JEI) status
LFSS 2025 adjusts the eligibility criteria for Young Innovative Company (JEI) or Growth Company (JEC) status.
From now on, research expenditure must represent at least 20% (compared with 15% previously) of tax-deductible expenses for SMIs, and between 5% and 20% for JECs.
These changes apply to fiscal years ending on or after March 1ᵉʳ, 2025.
Rate of employer's contribution on bonus share issues
The LFSS 2025 increases the rate of the employer's contribution on bonus share allocations.
The rate rises from 20% to 30% from March1, 2025.
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