General Reduction of Employer Contributions for Low Salaries (Formerly Fillon Reduction)

/in /by

Verified on January 1, 2025 – Directorate of Legal and Administrative Information (Prime Minister’s Office)

Employer Contribution Reduction for Low Salaries

The decree establishing the coefficients for the general reduction of employer contributions for 2025 has not yet been published. This page is currently being updated.

The reduction of employer charges for low salaries, also known as “zero Urssaf contributions” or formerly the “Fillon reduction,” allows employers to lower their social security contributions. This reduction applies to salaries that do not exceed €2,882.88 gross per month.

Which Employers Are Eligible?

All employers are eligible.

Note: Household employers are excluded from this reduction.

Which Salaries Qualify?

Salary Threshold Condition

To qualify, the salary must be below 1.6 times the gross minimum wage (Smic). A salary is eligible if it meets one of the following conditions:

  • Hourly gross salary is below €19.01
  • Monthly gross salary is below €2,882.88
  • Annual gross salary is below €34,595

Unemployment Insurance

All wages of employees contributing to unemployment insurance are included.

All Contract Types

All employees with a work contract in a company qualify, including part-time and apprenticeship contracts.

Which Contributions Are Reduced?

The reduction applies to the following employer contributions:

  • Social security contributions for health insurance, maternity, disability, death, and basic old-age pension (general or agricultural social security schemes)
  • Contribution to the National Housing Assistance Fund (Fnal)
  • Family allowance contributions
  • Solidarity autonomy contribution (CSA)
  • Legally mandatory supplementary pension contributions
  • Employer contribution to unemployment insurance
  • Work accident and occupational disease contributions (reduction limited to 0.55% of the salary)

How Is the General Reduction Calculated?

Basic Principle

The reduction amount is determined by multiplying the total annual gross salary by a coefficient.

Note: Urssaf automatically provides the contribution rates and the coefficient for the reduction calculation.

Components of Salary Considered

The calculation includes all forms of remuneration, whether in cash or in kind. Eligible salary components include:

  • Base salary
  • Bonuses
  • Gratuities
  • Overtime or additional hours compensation
  • Compensation from a time savings account (CET)
  • Paid leave and notice period compensation
  • Tips

Note: Reimbursements for professional expenses are excluded. 

Employer Contribution Reduction for Low Salaries.

Accounting for Working Hours

The calculation of working hours is done as follows:

Annual hours formula: [weekly hours worked * 52/12]

For part-time contracts, the salary threshold is adjusted proportionally.

Example: For an 80% part-time job, the eligible gross salary must be 80% of €2,882.88.

Can This Reduction Be Combined with Other Exemptions?

Combinable Exemptions

The reduction of employer charges for low salaries can be combined with the following exemptions:

  • Lump-sum employer deduction for overtime and paid rest days
  • Under certain conditions, the exemption for home help employees. Employers may benefit from both exemptions in the same month if an employee alternates between assisting a vulnerable public and other duties.
  • Reduced family allowance contribution rates
  • Reduced health insurance contribution rates
  • Reduced social contribution rates for professional journalists, freelancers, and similar roles
  • Reduced old-age insurance contributions for multi-card sales representatives (VRP) and medical professionals
  • Flat-rate deduction for professional expenses

Non-Combinable Exemptions

An employer cannot combine the general reduction with other full or partial exemptions for the same employee.

Note: If an employer benefits from a non-combinable exemption for part of the year, they may still apply the “Fillon” reduction for the remaining period.

Additionally, this reduction cannot be combined with special contribution rates, base calculations, or fixed contribution amounts used for specific professions.

Example: Performing artists’ special contribution rates cannot be combined with this reduction.

How to Declare the Reduction

To apply for the reduction of employer charges for low salaries, employers must declare it in the Nominative Social Declaration (DSN).

Employers must list the eligible employees, their remuneration, and the corresponding reduction.

The collection agency verifies the calculation upon receiving the declaration. In case of an audit, employers must provide all necessary information for verification.