Focus on the measures adopted in the Social Security Financing Act on December 16, 2025

• Increase in the cost of mutually agreed terminations and mandatory retirement

The specific employer contribution payable on individual mutually agreed termination indemnities and mandatory retirement indemnities will increase by 10 percentage points, rising from 30% to 40%.

The aim of this measure is to combat “strategies designed to circumvent the social security regime applicable to dismissal indemnities.”

• Introduction of a penalty on employer contributions for old-age and survivor’s insurance in the absence of negotiations on the retention of senior employees in companies with at least 300 employees

The purpose of this measure is to make effective the obligation introduced by Law No. 2025-898 of 24 October 2025.

• Increase of 10% in the rates of social security contribution surcharges applicable in cases of undeclared work

• Extension of the flat-rate deduction of employer social security contributions on overtime to all companies

Until now, this deduction was reserved solely for companies with fewer than 250 employees.

• Limitation of the statutory limitation period for sick leave

Unless healthcare professionals justify the need for a longer duration in light of the patient’s situation and, where applicable, in accordance with recommendations issued by the French National Authority for Health, a cap is introduced to limit the duration of sick leave :

-One month for an initial prescription;

-Two months in the event of an extension.

• Creation, as from 1 January 2026, of an additional birth leave.

Each parent will be entitled to an additional birth leave following maternity leave, paternity leave, child welcome leave, or adoption leave.

Its duration will be either one month or two months, which may be split into two one-month periods.