What are the employer contributions in 2026?
24 April 2026 · 3 min reading time
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See job offersEmployer contributions refer to the social security contributions and other payroll contributions paid by the employer in addition to the gross salary paid to the employee. They help finance part of the social protection system: health insurance, retirement, family allowances, unemployment insurance, workplace accidents, vocational training, and housing support.
In 2026, several figures are changing. The monthly Social Security ceiling rises to €4,005, compared with €3,925 in 2025, and the annual Social Security ceiling reaches €48,060. These amounts are used in particular to calculate certain capped contributions, such as capped old-age insurance or some supplementary pension contributions.
Another important change: since January 1, 2026, the general reduction in employer contributions has been renamed the single decreasing general reduction, or RGDU. It applies to remuneration below 3 times the minimum wage, with maximum relief at minimum wage level.
What are employer contributions?
Employer contributions refer to all social security contributions and other payroll contributions paid by the employer in addition to the gross salary paid to the employee. They are therefore not deducted from the employee’s salary, unlike employee contributions, but are added to the total cost borne by the company.
These contributions help finance different social protection schemes, such as health insurance, retirement, family allowances, unemployment insurance, workplace accidents, and vocational training. For the employer, they therefore represent a significant part of the cost of an employee, also known as the loaded salary.
What are the different employer contributions?
Employer contributions correspond to a set of social security contributions and other payroll contributions that the employer pays in addition to the employee’s salary. They are used to finance social security, unemployment insurance, training, and employment or solidarity-related schemes. Here are the main employer contributions currently in force:
- Health, maternity, disability and death insurance: to cover healthcare costs and guarantee replacement income in the event of sick leave.
- Old-age insurance (basic pension): to finance the employee’s retirement pension.
- Family allowances: paid via the CAF to support families.
- Workplace accidents and occupational diseases: the rate varies depending on the level of risk associated with the activity.
- Unemployment insurance: covers benefits in the event of job loss.
- AGS contribution (wage guarantee insurance): to guarantee wages if the company becomes insolvent.
- National Housing Assistance Fund (FNAL): contributes to the financing of housing assistance.
- Solidarity autonomy contribution (CSA): to support elderly and disabled people who are losing their independence.
- Mobility payment: finances public transport and is mandatory in certain geographical areas.
- Social package: applied to certain remuneration items not subject to standard contributions, such as profit-sharing.
- Apprenticeship tax: to finance apprenticeships and technical and vocational training.
- Contribution to continuing vocational training: contribution to employee training.
- Contribution for the employment of disabled workers (OETH): due if the company does not meet the legal quota of 6% of employees with disabilities.
Some contributions may vary depending on the size of the company, its geographical location, or the type of contract. Partial exemption schemes also exist, particularly for low wages or certain specific groups.
How to calculate employer contributions
Employer contributions are calculated based on the employee’s gross salary. In principle, the employer applies the employer contribution rates to the gross remuneration, but the calculation is not always uniform. Some contributions apply to the entire salary, while others are capped or vary depending on the company’s situation.
As an indication, employer contributions often represent between 25% and 42% of gross salary. This percentage may be lower for salaries close to the minimum wage, thanks to contribution relief, or vary depending on the company’s workforce, the employee’s status, the business sector, the collective bargaining agreement, or the workplace accident rate.
The basic formula is as follows:
Employer contributions = gross salary x applicable employer contribution rates
Concrete example:
Let’s take an employee paid a gross salary of €2,500 per month. If we use an indicative employer contribution rate of 42%, the employer will have to pay around €1,050 in contributions in addition to the gross salary.
The total cost for the company will therefore be around €3,550 per month, i.e. €2,500 in gross salary + €1,050 in employer contributions.
This amount may be reduced if the employer benefits from contribution relief. Since January 1, 2026, the main scheme is the single decreasing general reduction, which applies to remuneration below 3 times the minimum wage. It is highest at minimum wage level, then gradually decreases as the salary increases.
For this reason, the cost of an employee paid at minimum wage level cannot simply be calculated by adding a fixed contribution rate to the gross minimum wage. To go further, you can read our article dedicated to the loaded minimum wage, which explains the real cost of an employee paid at minimum wage level for the employer.
In practice, the exact calculation depends on many parameters. This is why companies generally rely on payroll software or a simulator to obtain an accurate amount that complies with their situation.
What is the social security contribution base?
When calculating employer contributions, the contribution base refers to the portion of remuneration on which contribution and payroll contribution rates are applied. It generally includes the employee’s gross salary, including bonuses, allowances, and benefits in kind. Some contributions are calculated on the full amount of this remuneration, while others, such as old-age insurance, are capped at the monthly Social Security ceiling (PMSS), set at €4,005 in 2026. The contribution base therefore varies depending on the type of contribution and the specific rules that apply to it.
Rates of the different employer contributions in 2026
| Employer contributions | Rate | Contribution base |
|---|---|---|
| Health, maternity, disability and death insurance | 13% | Total remuneration |
| Old-age insurance (uncapped portion) | 2.11% | Total remuneration |
| Old-age insurance (capped portion) | 8.55% | Within the limit of the monthly Social Security ceiling (PMSS), set at €4,005 |
| Family allowances | 5.25% | Total remuneration |
| Workplace accidents and occupational diseases | Rate notified by CARSAT (variable depending on the business sector) | Total remuneration |
| FNAL (companies with fewer than 50 employees) | 0.10% | Within the PMSS limit |
| FNAL (companies with 50 employees or more) | 0.50% | Total remuneration |
| Mobility payment | Rate varies depending on the geographical area | Total remuneration |
| Solidarity autonomy contribution (CSA) | 0.30% | Total remuneration |
| Social dialogue contribution | 0.016% | Total remuneration |
| AGS contribution | 0.25% | Remuneration within the limit of 4 times the PMSS |
| Unemployment insurance contribution | 4.05% | Total remuneration |
| AGIRC-ARRCO supplementary pension (tranche 1) | 4.72% | Tranche 1 remuneration (up to 1 PMSS) |
| AGIRC-ARRCO supplementary pension (tranche 2) | 12.95% | Tranche 2 remuneration (from 1 to 8 PMSS) |
| General balance contribution (CEG) (tranche 1) | 0.86% | Tranche 1 remuneration (up to 1 PMSS) |
| General balance contribution (CEG) (tranche 2) | 1.08% | Tranche 2 remuneration (from 1 to 8 PMSS) |
| Technical balance contribution (CET) | 0.21% | Tranches 1 and 2 (up to 8 PMSS) |
| APEC (executives) | 0.036% | Tranches 1 and 2 (up to 8 PMSS) |
| Executive provident scheme | 1.50% | Tranche 1 (up to 1 PMSS) |
| Social package | 20% | Remuneration subject to social security contributions but exempt from employer contributions |
| Apprenticeship tax | 0.68% | Total remuneration |
| Contribution to vocational training | 0.55% or 1%, depending on the company’s workforce | Total remuneration |
| Employers’ contribution to construction effort (PEEC) | 0.45% | Companies with 20 employees or more |
| CPF-CDD contribution | 1% | Fixed-term contracts, excluding specific contracts |
Notes:
- Monthly Social Security ceiling (PMSS): In 2026, the PMSS is set at €4,005.
- Family allowances: The applicable rate is 3.45% for salaries not exceeding 3.5 times the minimum wage paid by companies benefiting from the general contribution reduction, and 5.25% for salaries exceeding 3.5 times the minimum wage.
- AGS contribution: The wage guarantee insurance contribution rate is set at 0.25% as of January 1, 2026.
- General balance contribution (CEG): The rates are 0.86% for tranche 1 and 1.08% for tranche 2.
- Technical balance contribution (CET): This contribution applies to remuneration exceeding the PMSS.
What reductions and exemptions from employer contributions are possible?
To limit the cost of labor, some employers may benefit from reductions or exemptions from employer contributions. These schemes do not apply in the same way to all companies: they depend in particular on the level of remuneration, the employment contract, the workforce, the activity carried out, and the location of the establishment.
The main scheme today is the single decreasing general reduction, or RGDU. It makes it possible to reduce part of the employer contributions on remuneration below 3 times the minimum wage, with greater relief for salaries closest to the minimum wage.
Other exemptions may apply to more specific situations. This is the case, for example, for certain work-study hires, schemes linked to specific contracts, or companies located in areas eligible for an exemption regime, such as France Ruralités Revitalisation zones. Under certain conditions, these zones may allow an exemption from employer contributions when hiring an employee.
As these schemes change regularly, it is preferable to check the applicable conditions at the time of hiring, in particular with Urssaf, a payroll software provider, or an accountant.
Where do employer contributions appear on a payslip?
On a payslip, employer contributions are not always easy to spot at first glance, because they are not deducted from the employee’s gross salary. They generally appear in a specific column, often located on the right-hand side of the payslip, opposite employee contributions. This section shows the different rates and amounts corresponding to each employer contribution: health insurance, old-age insurance, family allowances, workplace accidents, and so on.
Some payslips also include a summary line called “total paid by the employer”, which adds together the gross salary and all employer contributions. This amount is useful for understanding what an employee really costs the company, beyond the net salary received.
Since the introduction of the simplified payslip, headings have been grouped into broad sections, but the details remain available on request or in the payroll software used by the company.
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