New Social and Wage Measures for 2026: What You Need to Know

Remuneration and Minimum Wage: The 2026 Updates

The gross hourly minimum wage has undergone a significant revaluation and has now been raised to €12.02 following a 1.18% increase. This rise translates into a monthly amount of €1,823.03 for full-time employment, directly impacting salary scales and companies’ payroll budgets.

At the same time, intern’s minimum remuneration increases from €4.35 to €4.50 per hour, thereby strengthening the attractiveness of internships in companies and the protection of students.

Reform of Employer Contributions and RGDU

One of the major transformations of 2026 concerns the new formula for calculating general reductions in employer contributions, now renamed RGDU “Réduction Générale Dégressive Unique” (Single General Degressive Reduction). This administrative simplification aims to harmonize the system of contribution reductions for employers.

In addition, several changes to employer contributions should be noted:

The increase of employer’s contribution rate for old-age pension “assurance vieillesse déplafonnée” rises from 2.02% to 2.11%, representing a budgetary adjustment to be integrated into social forecasts.

The increase in the employer’s contribution to contractual severance pay and retirement benefits represents a significant change: the rate will now rise from 30% to 40%, considerably increasing the cost of amicable separations.

Overtime: Extension of the Flat-Rate Deduction

The LFSS for 2026 extends the flat-rate deduction for employer contributions on overtime to companies with more than 250 employees, effective 1st January 2026. This measure, previously reserved for smaller structures, represents a significant tax advantage.

The flat-rate deduction for employer contributions per hour of overtime amounts to:

• €1.50 per hour of overtime for companies with fewer than 20 employees
• €0.50 per hour of overtime for companies with more than 20 employees

Leave and Work Stoppages: New Provisions

The new “additional birth leave” makes its entry into the French social landscape. Parents who are employed and have a newborn or adopted child will be able to take up to two months’ leave in addition to maternity, paternity, adoption and parental leave. The Ministry of Health has announced that this leave cannot be taken before next July, allowing companies to organize accordingly.

Regarding setting a maximum duration for work stoppages, the regulation is clarified: one month for the first stoppage, two months for a renewal. This measure aims to better regulate absences for medical reasons.

Employment Contracts: New Reason for Fixed-Term Contracts

As of 1st January 2026, a new reason for fixed-term contracts (CDD) will be included in the Labour Code, covering an employee’s professional retraining period (Article L. 1242-3, 5° of the Labour Code in force on 1st January 2026).

This professional retraining fixed-term contract has the following characteristics:

• Minimum period of 6 months (and up to 12 months)
• Exceptions: acquisition of basic knowledge or skills, or a specific industry or company agreement providing for a longer period, up to a maximum of 36 months

This provision promotes professional mobility and offers a secure framework for career transitions.

Maintenance of the Possibility of Covering 75% of Home-to-Work Transport Costs

Employers who cover up to 75% of their employees’ public transport costs (i.e. above the mandatory 50% coverage) will continue to be exempt from social security contributions and income tax on this coverage for the year 2026. The employer’s contribution only applies to travel passes (annual, monthly or weekly).

Extension of Tax and Social Security Exemptions on Tips

In force since 2022, the exemption from tax and social security contributions on tips paid will remain applicable on 1st January 2026. It applies to tips that are not taxed to customers and paid to employees (in contact with customers) whose monthly remuneration is less than 1.6 times the minimum wage (i.e. €2,916.85 gross in 2026).

Critical information for companies: the postponement of pension reform until 1st January 2028 provides additional time to anticipate changes related to retirement age and contribution periods.

Faced with the complexity of these new provisions, Coffra Group puts its multidisciplinary expertise at your disposal to support you in their implementation. Our Social Hub analyzes the impact of these measures on your organization and offers you solutions adapted to your situation.