What HRDs need to know about the Social Security Financing Act for 2025

Every year, the French Social Security Financing Act (LFSS) makes sweeping changes to the rules governing social security contributions, benefits, taxation and the organization of social protection. The 2025 law, promulgated on February 28, is no exception. It includes a number of measures that Human Resources Directors (HRDs) must master in order to adjust their practices and ensure their company's compliance.

On the agenda: reform of tax relief, increased contributions, new obligations linked to sick leave, inclusion and public health measures... Here is an in-depth analysis of the main measures of direct concern to employers and their HR teams.

The aim is clear: to rationalize tax relief schemes, while preserving incentives for hiring and the competitiveness of companies.

From 2025, the thresholds for eligibility for rate reductions on certain contributions will change:

The General Reduction in Employer Contributions (RGCP ) remains applicable up to 1.6 SMIC, but its degressive rate has been recalibrated to avoid threshold effects.

In 2026, a merger of exemptions is scheduled: the RGCP will become a single, simplified system, with a progressive ceiling up to 3 SMIC.

For HR departments, this means anticipating the impact on compensation policies and the organization of pay scales. Simulations must be carried out to assess the impact of this reform on labor costs.

Until now, apprentices have benefited from a virtual exemption from employee contributions. From March 1, 2025, only the fraction of their remuneration below 50% of the SMIC will remain exempt.

In concrete terms :

HR departments need to integrate this change into their payroll tools, and review the pay slips concerned. Educational communication with apprentices is also essential.

The growing success of AGAs as a tool for attracting employees is in the legislator's sights. The employer's contribution will rise from 20% to 30%, as of March 1, 2025.

Even if these plans often only concern executives and managers, the HR department needs to reassess their tax efficiency. It may be necessary to opt for other, less taxed incentive schemes (profit-sharing, value-sharing bonuses, etc.).

The JEI status, highly prized for its tax breaks, is becoming more selective:

For technology startups and SMEs, this measure requires better structuring of R&D budgets and solid documentary evidence to retain the benefit of the exemptions.

Good news for agricultural employers: the TO-DE scheme is here to stay.

It allows you to continue hiring seasonal workers while benefiting from a partial exemption from employer contributions.

For HR managers in the agricultural sector, this stability is invaluable against a backdrop of labor shortages and pressure on production costs.

From April 1, 2025, IJSS benefits will be capped at 1.4 SMIC (instead of 1.8 SMIC). This means that higher-paid employees will lose more in the event of sick leave.

Employers will have to adapt their salary maintenance policies to compensate for this loss, particularly in the case of collective agreements providing for additional compensation.

This reform impacts the attractiveness of social packages, especially for executives.

In line with a European directive, from 2025 companies with over 100 employees will have to publish data on gender pay gaps.

If the difference exceeds 5% without justification, a joint assessment with employee representatives becomes mandatory.

HR managers must :

It's also a question of employer branding.

In response to the explosion in sick leave (+10% in one year), the LFSS 2025 provides for :

️ HRDs can expect to work more closely with CPAMs and will need to strengthen internal control systems (resumption medical examinations, absence management...).

Companies still have to comply with the 6% employment obligation for disabled workers, but new requirements are being put forward:

The year 2025 also sees an increase in financial penalties for non-compliant companies.

The company's disability mission should be enhanced and professionalized.

The RSA becomes conditional on 15 hours of weekly activity. All recipients are automatically registered with France Travail.

HRDs can be called upon to :

It's an opportunity for companies committed to CSR to strengthen their local social roots.

More generally, the LFSS 2025 is part of a drive to control public spending. The government is calling on companies to take responsibility for :

HR managers, on the front line, must transform themselves into social performance drivers.

The LFSS 2025 is not simply a technical law. It outlines a strategic vision: that of a company that is not only more tax-efficient, but also more supportive, inclusive and responsible.

For HRDs, this law imposes :

This is where the future lies: in the ability of companies to integrate normative changes without losing sight of their internal cohesion, attractiveness and social resilience.