Payroll and Social Security Updates in France for 2025

As we prepare for 2025, significant updates to payroll and social security regulations in France are set to take effect. While Parakar has already adopted many of these changes, we’ve outlined the key updates below to ensure you remain informed. These reforms are particularly useful if you have other providers or want to better understand how these changes may impact employers and employees.

New payslip format

From January 1, 2025, a revised, clarified payroll slip will be mandatory. Parakar has already implemented this format, but it’s essential to note the key updates:

• “Net Social” display: Payroll slips will now prominently feature the net social amount, which represents the salary after all mandatory social deductions. This aims to improve employee understanding of their net earnings.
• Mandatory vs. optional contributions: Sections will clearly separate mandatory contributions (e.g., retirement and unemployment insurance) from optional ones (e.g., health insurance premiums).
• Reimbursements and deductions section: New dedicated sections will include reimbursements and deductions, such as transportation costs and meal vouchers.

These changes enhance transparency and simplify payroll information for employees.

Simplifications of labels

Payroll slip labels will be standardized and shortened for easier reading.

• Removal of redundant or outdated entries, such as mentions of past policy changes.
• Standardized terms to improve readability and ensure consistency across all payroll slips.

These updates aim to make payroll slips more user-friendly for employees while maintaining compliance with French labour laws.

Adjustments to social contribution exemptions

Starting in 2025, employer exemptions on social contributions will undergo restructuring, with full implementation by 2026. Key updates include:

• High-income employees: Exemptions for salaries above three times the minimum wage (SMIC) will be streamlined, leading to reduced employer benefits.
• Apprenticeships: Exemptions for apprentices’ wages will be reduced, meaning a larger portion of their pay will now be subject to contributions such as CSG/CRDS (Contribution Sociale Généralisée / Contribution au Remboursement de la Dette Sociale).

These changes will affect cost structures for certain employees, particularly high earners and apprentices.

Social security and tax contribution adjustments

Minimum wage (SMIC) adjustments: The minimum wage (SMIC) is expected to rise in 2025, reflecting inflation and cost-of-living adjustments. Parakar will ensure this is updated in payroll systems.

Social contribution thresholds: Thresholds for employer and employee contributions to social security schemes will be adjusted for inflation. This will marginally impact payroll costs for high earners.

How Parakar supports you

At Parakar, we’ve already adopted the new payroll slip format and are fully compliant with these regulatory updates. Here’s how we continue to support you:

• Seamless payroll updates: All adjustments, including new labels, exemptions, and contribution thresholds, are already integrated into our systems.
• Transparency for employees: With the new payroll slip format, we ensure your employees clearly understand their pay, net social amounts, and deductions.
• Ongoing compliance: Our team monitors legislative changes to ensure your payroll processes meet French regulations.
• Custom solutions: Whether it’s managing apprenticeship contributions or adjusting for high-income employees, we tailor our solutions to your needs.

Comprehensive HR and payroll solutions with Parakar

At Parakar, we don’t just handle payroll—we’re your partner in business growth. In addition to payroll services, we offer:

• HR Consultancy: Need help with employment contracts, employee lifecycle management, or compliance? We’ve got you covered.
• Payroll Consultancy: Let us help you optimize payroll operations and solve complex challenges.
• Employer of Record (EOR): Simplify international hiring without establishing a local entity.
• Payroll & HR full service: Perfect for international businesses looking for seamless HR and payroll solutions across France and other European countries.

If you have questions about these updates or are ready to take advantage of our services, reach out to us today. Together, we’ll ensure your payroll runs smoothly and your business thrives in 2025 and beyond.