⚠️ Archive — March 2025 reform. This article describes the law as it stood then. Since 1 January 2026 the SMIC is €12.02/hour (€12.31 from 1 June) and the RGDU (art. L.241-13 of the French Social Security Code) has replaced the réduction Fillon and the sickness and family rate reductions.

Apprenticeship in France: New 50% SMIC Social Charge Exemption Threshold Since March 2025

Introduction: A Major Reform of the Social Regime for Apprenticeship

The social regime applicable to apprenticeship has undergone a significant transformation with the entry into force, on 1 March 2025, of a new employee social contribution exemption threshold, lowered to 50% of the SMIC (the French statutory minimum wage). This measure, provided for by the Social Security Financing Act for 2025 (loi de financement de la Sécurité sociale, or “LFSS 2025”) and clarified by an implementing decree, substantially alters the calculation of the cost of apprenticeship for companies and directly affects apprentices’ payslips.

For payroll managers, HR directors and chartered accountants, this reform requires an immediate update of payroll settings and a precise understanding of the new applicable rules. This article analyses the changes introduced in detail, their practical consequences on the payslip, and the key points employers should monitor in order to secure the processing of apprentices’ remuneration.

1. Reminder of the Previous Regime: Exemption up to 79% of the SMIC

1.1 The Historical Employee Exemption Principle

Before 1 March 2025, apprentices benefited from a full exemption from employee social contributions, including the CSG (contribution sociale généralisée, a general social contribution) and the CRDS (contribution au remboursement de la dette sociale, a contribution to social debt repayment), on the portion of their remuneration not exceeding 79% of the gross monthly SMIC. This threshold, set by Article L. 6243-2 of the French Labour Code in its former wording, was intended to ensure that apprentices received a net remuneration as close as possible to their gross remuneration.

In practical terms, for a gross monthly SMIC of €1,801.80 as at 1 January 2025 (based on 35 hours), the exemption threshold stood at €1,801.80 × 79% = €1,423.42. Since almost all apprentices received remuneration below this threshold, the exemption covered their entire remuneration in the vast majority of cases.

1.2 A Particularly Favourable Regime

This exemption regime at 79% of the SMIC had the advantage of simplicity: for most apprentices, gross equalled net (apart from mandatory supplementary health insurance where applicable). Only the oldest apprentices (aged 26 and over, paid at 100% of the SMIC or of the applicable minimum wage set by collective bargaining agreement) or those in their third year of apprenticeship could see their remuneration exceed the threshold and become subject to employee contributions on the excess portion.

2. The New Regime: Threshold Lowered to 50% of the SMIC

2.1 Entry into Force on 1 March 2025

The LFSS 2025 amended Article L. 6243-2 of the French Labour Code to lower the employee contribution exemption threshold from 79% to 50% of the gross monthly SMIC. The implementing decree, published in the Official Journal, set the entry into force at 1 March 2025.

The new threshold therefore stands at €1,801.80 × 50% = €900.90 (based on the SMIC as at 1 January 2025). This threshold applies on a monthly basis and must be pro-rated in the event of part-time work, absence, or an incomplete month.

2.2 Scope of the Reduction

The direct consequence of lowering the threshold is to considerably broaden the base subject to CSG and CRDS for apprentices. Indeed, above 50% of the SMIC, the apprentice’s remuneration is now subject to the following deductions:

• CSG at a rate of 9.20% (of which 6.80% is deductible and 2.40% non-deductible);
• CRDS at a rate of 0.50% (non-deductible).

The total deductions therefore amount to 9.70% on the portion of remuneration exceeding 50% of the SMIC. The CSG/CRDS base is calculated on 98.25% of the remuneration (applying the 1.75% allowance for professional expenses), up to a limit of four times the annual social security ceiling.

2.3 Employee Contributions Other Than CSG/CRDS

It is important to note that the exemption from employee contributions (health insurance, old-age pension, unemployment) remains applicable up to 50% of the SMIC. Above this threshold, standard employee contributions theoretically become due. However, in practice, it is mainly the CSG and CRDS that constitute the most significant impact for apprentices, the other employee contributions remaining limited in most remuneration configurations.

3. Impact on the Apprentice Remuneration Scale

3.1 Reminder of the Statutory Remuneration Scale

The minimum remuneration of apprentices is set as a percentage of the SMIC (or of the minimum wage set by collective bargaining agreement if more favourable) according to the apprentice’s age and the year of performance of the contract. The scale applicable in 2025 is as follows:

Apprentices aged 16-17:

• 1st year: 27% of the SMIC (€486.49)
• 2nd year: 39% of the SMIC (€702.70)
• 3rd year: 55% of the SMIC (€990.99)

Apprentices aged 18-20:

• 1st year: 43% of the SMIC (€774.77)
• 2nd year: 51% of the SMIC (€918.92)
• 3rd year: 67% of the SMIC (€1,207.21)

Apprentices aged 21-25:

• 1st year: 53% of the SMIC (€954.95)
• 2nd year: 61% of the SMIC (€1,099.10)
• 3rd year: 78% of the SMIC (€1,405.40)

Apprentices aged 26 and over:

• All years: 100% of the SMIC (€1,801.80)

3.2 Identifying the Apprentices Affected

With the new threshold at 50% of the SMIC (€900.90), apprentices whose remuneration exceeds this amount are now subject to CSG/CRDS on the excess portion. The following are therefore directly affected:

• Apprentices aged 16-17 in their 3rd year (55% of the SMIC = €990.99);
• Apprentices aged 18-20 from their 2nd year (51% of the SMIC = €918.92);
• Apprentices aged 21-25 from their 1st year (53% of the SMIC = €954.95);
• Apprentices aged 26 and over (100% of the SMIC = €1,801.80).

By contrast, apprentices aged 16-17 in their 1st year (27% = €486.49) and 2nd year (39% = €702.70), as well as apprentices aged 18-20 in their 1st year (43% = €774.77), remain fully exempt as their remuneration is below 50% of the SMIC.

4. Concrete Impact on the Payslip

4.1 Worked Example: Apprentice Aged 21 in Their 2nd Year

Take the example of an apprentice aged 21 in their 2nd year, paid at 61% of the SMIC, i.e. €1,099.10 gross per month.

Before 1 March 2025 (threshold at 79% of the SMIC = €1,423.42):

• Gross remuneration: €1,099.10
• Remuneration below the 79% threshold → full exemption
• Net pay: €1,099.10

Since 1 March 2025 (threshold at 50% of the SMIC = €900.90):

• Gross remuneration: €1,099.10
• Exempt portion: €900.90
• Portion subject to CSG/CRDS: €1,099.10 – €900.90 = €198.20
• CSG/CRDS base (after the 1.75% allowance): €198.20 × 98.25% = €194.73
• CSG: €194.73 × 9.20% = €17.92
• CRDS: €194.73 × 0.50% = €0.97
• Total deducted: €18.89
• Net pay: €1,080.21

The net reduction for the apprentice therefore amounts to €18.89 per month, i.e. approximately €227 per year.

4.2 Worked Example: Apprentice Aged 26 and Over

For an apprentice aged 26 and over, paid at 100% of the SMIC, i.e. €1,801.80 gross per month, the impact is much more significant:

• Portion subject: €1,801.80 – €900.90 = €900.90
• CSG/CRDS base: €900.90 × 98.25% = €885.13
• CSG + CRDS: €885.13 × 9.70% = €85.86
• Monthly net reduction: €85.86, i.e. approximately €1,030 per year

This impact is far from negligible for older apprentices and constitutes a key point of attention for HR departments when informing apprenticeship candidates.

5. Employer Contributions: The Applicable General Reduction

5.1 Standard Calculation

On the employer side, employer contributions on apprentices’ remuneration are subject to the standard regime. The general reduction of employer contributions (known as the “réduction Fillon”, the Fillon reduction) is applicable under the same terms as for other employees. The reduction coefficient is calculated based on the ratio between the gross annual remuneration and the annual SMIC, according to the usual formula.

5.2 Impact on the Overall Cost of Apprenticeship

The general reduction significantly lowers the employer cost of apprenticeship, particularly for apprentices whose remuneration is close to the SMIC. The calculation of the reduction coefficient takes into account the apprentice’s actual remuneration (and not a reconstituted remuneration), which results in a high coefficient for the lowest-paid apprentices.

For companies with fewer than 50 employees, the maximum coefficient of the general reduction reaches 0.3194 (2025 value), allowing a substantial reduction in employer contributions. For companies with 50 or more employees, the maximum coefficient is 0.3234 (including the FNAL contribution at the increased rate).

6. Hiring Aid for Apprentices in 2025

6.1 Maintenance of the €6,000 Aid

The hiring aid for apprentices, set at €6,000 for the first year of performance of the contract, is maintained in 2025. This aid is paid monthly (€500 per month for 12 months) and applies to all apprenticeship contracts concluded between 1 January and 31 December 2025, with no condition as to company size or the level of qualification being prepared.

6.2 Eligibility Conditions

To benefit from the aid, the employer must:

• Conclude an apprenticeship contract between 1 January and 31 December 2025;
• File the contract with the skills operator (opérateur de compétences, or “OPCO”) within the regulatory deadlines;
• Submit the monthly DSN (déclaration sociale nominative, the standardised social declaration) enabling the automatic payment of the aid by the ASP (Agence de services et de paiement, the Services and Payment Agency).

The aid may be combined with the social contribution exemptions applicable to apprentices. It covers a significant portion of the apprentice’s payroll cost in the first year, making apprenticeship financially very attractive despite the reform of the exemption threshold.

7. Special Case of the Public Sector

7.1 Specific Exemption Maintained

Employers in the non-industrial and non-commercial public sector benefit from a specific exemption regime for apprentices, distinct from the standard regime. This regime, provided for by Article L. 6227-8-1 of the French Labour Code, provides for a full exemption from employer contributions (excluding contributions to the additional public service pension scheme) and is maintained without change by the LFSS 2025.

7.2 Interaction with the New Threshold

The lowering of the employee exemption threshold to 50% of the SMIC also applies to public-sector apprentices. However, the specific employer exemption regime is unchanged, which maintains an advantage for public employers compared with the standard regime.

8. Impacts on the DSN

8.1 Declaration of Employee Contributions

The implementation of the new threshold requires an adaptation of DSN settings. Payroll software providers have had to update their calculation rules to distinguish the exempt portion (up to 50% of the SMIC) from the portion subject to contributions (above 50% of the SMIC). The personnel type codes (codes types de personnel, or “CTP”) specific to apprentices must be correctly entered to avoid any declaration anomaly.

8.2 Points to Monitor

Payroll managers must be particularly vigilant on the following points:

• The pro-rating of the threshold in the event of an incomplete month (hiring or departure during the month);
• The pro-rating of the threshold in the event of part-time work;
• Managing the transitional period (before and after 1 March 2025 within the single month of March);
• The correct allocation of CTPs to the contribution blocks in the DSN;
• Verification of the CSG/CRDS rates applied (9.20% + 0.50% on the base after allowance).

9. Impact Analysis: A Paradigm Shift for the Attractiveness of Apprenticeship?

9.1 A Net Additional Cost for the Apprentice

The lowering of the exemption threshold represents a reduction in purchasing power for apprentices whose remuneration exceeds 50% of the SMIC. Although the impact is moderate for the youngest and least experienced apprentices, it can be significant for apprentices aged 26 and over, for whom the net reduction reaches more than €1,000 per year.

9.2 A Political Signal to Watch

This measure forms part of a context of seeking revenue to fund Social Security. It reflects a desire to rationalise social exemptions by targeting them more towards the most vulnerable populations. Employers’ organisations and professional branches have expressed concerns about the potential impact on the use of apprenticeship, particularly for adults undergoing career retraining.

9.3 The Maintenance of the €6,000 Aid as a Counterweight

The maintenance of the €6,000 hiring aid in 2025 is an important offsetting factor for employers. This aid, combined with the general reduction of employer contributions, keeps the net employment cost of apprentices broadly attractive, despite the increase in the gross cost linked to the new employee contribution regime.

FAQ – Frequently Asked Questions on the New Apprenticeship Exemption Threshold

Does the new 50% threshold apply to ongoing contracts or only to new contracts?

The new threshold of 50% of the SMIC applies to all ongoing apprenticeship contracts as from 1 March 2025, and not only to contracts concluded after that date. It is a change to the social regime that applies automatically, with no condition as to the date of conclusion of the contract. Payroll managers must therefore update the processing of all apprentices’ payslips from the March 2025 payroll onwards.

How should the payroll for March 2025 be handled, straddling the old and new regimes?

For March 2025, two methods are possible: either a pro rata temporis approach (applying the old threshold from 1 to 28 February, then the new threshold from 1 March), or applying the new threshold across the whole of March. The BOSS (Bulletin officiel de la Sécurité sociale, the official social security bulletin) and ministerial instructions recommend applying the new threshold across the whole of March 2025 for simplification purposes. Employers should refer to the guidance from their payroll software provider.

Is the employer contribution exemption specific to apprentices modified?

No, the reform concerns exclusively the exemption threshold for employee contributions. The employer contribution regime is not modified: the general reduction of employer contributions (the Fillon reduction) remains applicable under the same terms as before. Employers continue to benefit from a significant reduction in employer charges on apprentices’ remuneration.

What is the impact on apprentices’ mandatory supplementary health insurance?

The employee contribution to the mandatory supplementary health insurance is not modified by the exemption threshold reform. The employee’s supplementary health insurance contribution remains due under the same conditions as before. However, apprentices whose employee share of the health insurance contribution exceeds 10% of their gross remuneration may request an exemption from affiliation. This option remains unchanged and may be particularly relevant for the youngest apprentices, whose remuneration is the lowest.

Is the €6,000 hiring aid affected by this reform?

No, the €6,000 hiring aid for apprentices is entirely independent of the employee contribution regime. It is maintained in 2025 for all apprenticeship contracts, with no condition as to company size or level of qualification. Payment of the aid continues to be made monthly by the ASP, based on the data submitted by the employer via the DSN.