French Labour Law

Apprenticeship Reform: New Exemption Threshold of 50% of SMIC from March 2025

DAIRIA Law · 2026-07-14 · 6 min

Introduction: A Major Reform of the Social Regime for Apprenticeship

The social regime for apprenticeship is undergoing a significant transformation with the implementation of a new exemption threshold reduced to 50% of the minimum wage (SMIC) effective March 1, 2025. This measure, stipulated by the Social Security Financing Law for 2025 (LFSS 2025) and specified by a subsequent decree, profoundly alters the calculation of apprenticeship costs for businesses and directly impacts the pay slips of apprentices.

For payroll managers, human resources directors, and certified accountants, this reform necessitates an immediate update of payroll settings and a thorough understanding of the new applicable rules. This article provides a detailed analysis of the changes made, their practical consequences on pay slips, and important points to monitor to secure the payment processing of apprentices.

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

1.1 The Historical Principle of Salary Exemption

Before March 1, 2025, apprentices benefited from a complete exemption from social contributions, including CSG (General Social Contribution) and CRDS (Social Debt Repayment Contribution), on the portion of their salary not exceeding 79% of the gross monthly SMIC. This threshold, established by Article L. 6243-2 of the French Labour Code in its previous version, aimed to ensure that apprentices received a net salary as close as possible to their gross salary.

Specifically, for a gross monthly SMIC of €1,801.80 as of January 1, 2025 (based on a 35-hour workweek), the exemption threshold was set at €1,801.80 × 79% = €1,423.42. Since nearly all apprentices earned a salary below this threshold, the exemption covered their entire salary in the vast majority of cases.

1.2 An Especially Favorable Regime

This exemption regime at 79% of the SMIC offered simplicity: for most apprentices, their gross and net pay were equivalent (excluding mandatory health insurance where applicable). Only older apprentices (26 years and older, paid at 100% of SMIC or the contractual minimum salary) or those in their third year of apprenticeship could see their pay exceed the threshold, thus being subject to employee contributions on the excess portion.

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

2.1 Effective March 1, 2025

The LFSS 2025 amended Article L. 6243-2 of the French Labour Code to lower the exemption threshold for social contributions from 79% to 50% of the gross monthly SMIC. The implementing decree, published in the Official Journal, set the effective date for March 1, 2025.

Thus, the new threshold is set at €1,801.80 × 50% = €900.90 (based on the SMIC as of January 1, 2025). This threshold applies on a monthly basis and must be prorated in the case of part-time work, absences, or incomplete months.

2.2 Scope of the Reduction

The reduction of the threshold directly results in a substantial broadened base subject to CSG and CRDS for apprentices. Indeed, beyond 50% of the SMIC, the salary of an apprentice is now subject to the following deductions:

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

The total of these deductions amounts to 9.70% on the salary portion exceeding 50% of the SMIC. The CSG/CRDS base is calculated on 98.25% of the salary (applying a 1.75% deduction for professional expenses), within the limit of four annual ceilings of Social Security.

2.3 Other Employee Contributions Beyond CSG/CRDS

It is important to note that the exemption from employee contributions (health insurance, retirement, unemployment) remains applicable up to 50% of the SMIC. Beyond this threshold, general employee contributions theoretically become exigible. However, in practice, it is primarily the CSG and CRDS that have the most significant impact for apprentices, with other employee contributions remaining limited in most salary configurations.

3. Impact on the Salary Grid for Apprentices

The minimum salary for apprentices is set as a percentage of the SMIC (or the more favorable contractual minimum salary) based on the age of the apprentice and the year of contract execution. The applicable grid in 2025 is as follows:

Apprentices aged 16-17:

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

Apprentices aged 18-20:

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

Apprentices aged 21-25:

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

Apprentices aged 26 and older:

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

3.2 Identification of Affected Apprentices

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 groups are thus directly impacted:

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

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

4. Concrete Impact on the Pay Slip

4.1 Numerical Example: 21-Year-Old Apprentice in 2nd Year

Let’s consider the example of a 21-year-old apprentice in the 2nd year, earning 61% of the SMIC, which is €1,099.10 gross monthly.

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

  • Gross Salary: €1,099.10
  • Salary below the 79% threshold → total exemption
  • Net to be paid: €1,099.10

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

  • Gross Salary: €1,099.10
  • Exempt Portion: €900.90
  • Portion subject to CSG/CRDS: €1,099.10 – €900.90 = €198.20
  • CSG/CRDS Base (after 1.75% deduction): €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 to be paid: €1,080.21

Thus, the net loss for the apprentice amounts to €18.89 per month, or approximately €227 per year.

4.2 Numerical Example: Apprentice Aged 26 and Over

For an apprentice aged 26 and older, earning 100% of the SMIC, which is €1,801.80 gross monthly, the impact is considerably more significant:

  • Subject Portion: €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 Loss: €85.86, or approximately €1,030 per year.

This impact is not insignificant for older apprentices and represents a major point of concern for HR departments when informing apprenticeship candidates.

5. Employer Contributions: The General Reduction Applicable

5.1 Common Law Calculation

On the employer’s side, social contributions on apprentice remuneration are subject to common law regulations. The general reduction of employer contributions (the

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