French General Employer Contribution Relief (RGDU) 2026: Calculation and URSSAF / Agirc-Arrco Allocation Guide

What is the general reduction of employer contributions and what is its legal framework in 2026?

The réduction générale dégressive unique (RGDU) — the single degressive general contribution relief — is a general-law scheme codified in Articles L.241-13 and D.241-7 of the French Social Security Code. Since 1 January 2026, it has absorbed the three general reliefs that previously coexisted: the general reduction known as the “Fillon” relief, the reduced health insurance contribution rate and the reduced family allowance rate (Article 18 of Law no. 2025-199 of 28 February 2025). It applies to annual remuneration not exceeding 3 times the SMIC (the French statutory minimum wage) — and no longer 1.6 times the SMIC. Decree no. 2025-1446 of 31 December 2025 sets its parameters, notably raising the uncapped old-age (vieillesse déplafonnée) contribution rate to 2.11%.

The RGDU is a major instrument of French employment policy: it represents several tens of billions of euros in annual relief for French companies. Technical command of the scheme is essential for any payroll manager. For an overall view of payroll mechanisms, see our complete payroll guide.

Which employer contributions fall within the “T” scope of the general reduction?

The “T” scope designates all employer contributions and levies taken into account when calculating the coefficient of the reduction. In 2026, this scope includes:

Health-maternity-invalidity-death (MMID): 13.00%, a single rate since the reduced rate was abolished on 1 January 2026;
Capped old-age (vieillesse plafonnée): 8.55%;
Uncapped old-age (vieillesse déplafonnée): 2.11% since 1 January 2026, in accordance with Decree no. 2025-1446 of 31 December 2025;
Family allowances: 5.25%, a single rate since the reduced rate was abolished on 1 January 2026;
Workplace accidents / occupational diseases (AT/MP): a flat rate of 0.49 points, and not the company’s actual rate. This point is fundamental and a frequent source of errors;
FNAL (national housing assistance fund): 0.10% (companies with fewer than 50 employees) or 0.50% (companies with 50 or more employees);
Unemployment insurance: the general-law rate without bonus-malus, i.e. 4.00%;
Solidarity contribution for autonomy (CSA): 0.30%;
Legally mandatory supplementary pension: 6.01%.

Why is the AT/MP rate used a flat 0.49 points and not the actual rate?

The legislature chose a flat rate for calculating the general reduction to prevent companies with a high accident rate (and therefore a high AT/MP rate) from benefiting from a disproportionate reduction. The 0.49-point flat rate is set by regulation and does not vary according to the sector of activity or the company’s individual rate. This rule is expressly provided for in Article D.241-7 of the French Social Security Code. To explore the AT/MP topic further, see our AT/MP guide.

How is the unemployment insurance bonus-malus neutralised in calculating the general reduction?

Since the introduction of the bonus-malus scheme on the employer unemployment insurance contribution (affected sectors: hospitality and catering, agri-food, transport, etc.), the question of its interaction with the general reduction has arisen. The answer is clear: the bonus-malus is neutralised for calculating the T coefficient. In other words, it is the general-law unemployment insurance rate (4.00%) that is used within the T scope, and not the modulated rate (which can vary from 3.00% to 5.05% depending on the company’s performance in terms of employment separations).

This neutralisation guarantees equal treatment between companies for calculating the general reduction, regardless of their separation rate. The surplus (or reduction) in the unemployment contribution linked to the bonus-malus is added to (or subtracted from) the effective unemployment contribution, but without affecting the calculation of the general reduction.

Which contributions are excluded from the scope of the general reduction?

Several employer contributions and levies are expressly excluded from the T scope:

CSG and CRDS (general social contribution and social debt repayment contribution): these levies are not employer contributions in the strict sense and are therefore excluded from the calculation;
Vocational training contribution: this contribution (0.55% or 1% depending on headcount) does not fall within the scope of the reduction;
Apprenticeship tax: excluded from the T scope;
Mobility levy (versement mobilité, formerly the transport levy): excluded, although it represents a significant cost for companies located within the area of a mobility organising authority;
Social dialogue contribution: excluded.

This exclusion means that these employer costs remain fully payable, with no possibility of reducing them via the general reduction. The employer must ensure it does not include them in the calculation of the C coefficient, failing which the amount of the reduction would be unduly increased.

How to calculate the C coefficient of the general reduction step by step?

Calculating the C coefficient follows a precise regulatory formula, detailed in Article D.241-7 of the French Social Security Code. Here is the four-step methodology:

Step 1: Determine the value of T

T corresponds to the sum of the eligible employer contribution rates. In 2026, for a company with 50 or more employees and an FNAL rate of 0.50%:

Sum = 13.00% (MMID) + 8.55% (capped old-age) + 2.11% (uncapped old-age) + 5.25% (family allowances) + 0.49% (AT/MP pooled share) + 0.30% (CSA) + 6.01% (supplementary pension) + 4.00% (unemployment) + FNAL

The total amounts to 40.21% for an FNAL rate of 0.50%, and to 39.81% for an FNAL rate of 0.10%. This total corresponds to the maximum coefficient, reached at the SMIC level: in the 2026 formula terminology, this is the sum Tmin + Tdelta (Tmin being 0.0200 in all cases).

Step 2: Calculate the C coefficient

The formula for the coefficient is:

C = Tmin + Tdelta × [ ½ × (3 × annual SMIC ÷ annual gross remuneration − 1) ]^1.75

The C coefficient must be calculated with four decimal places, applying the rounding rule to the nearest ten-thousandth. The C coefficient may under no circumstances exceed the maximum value Cmax = Tmin + Tdelta (0.3981 or 0.4021). If the calculation gives a higher coefficient, this cap is used. Conversely, as long as remuneration remains below 3 times the SMIC, the coefficient cannot fall below the floor Tmin of 0.0200.

Step 3: Calculate the reduction amount R

The amount of the reduction is:

R = C × annual gross remuneration

The amount R is rounded to the nearest euro cent. In practice, the calculation is carried out month by month with progressive or annual regularisation (the progressive regularisation method recommended by the URSSAF).

Step 4: Split the reduction between URSSAF and Agirc-Arrco

The single amount R must be split between the URSSAF and Agirc-Arrco according to an allocation key set by regulation. This split is detailed in the following section.

How to split the R reduction between URSSAF and Agirc-Arrco under the 2026 allocation key?

The reduction R calculated above is a single amount that must be allocated across two sets of contributions: those paid to the URSSAF and those paid to Agirc-Arrco. The allocation key depends on the FNAL rate applicable to the company:

Companies with an FNAL rate of 0.10% (fewer than 50 employees)

URSSAF share = R × (33.80 ÷ 39.81) ≈ R × 84.90%

Agirc-Arrco share = R − URSSAF share ≈ R × 15.10%

Companies with an FNAL rate of 0.50% (50 or more employees)

URSSAF share = R × (34.20 ÷ 40.21) ≈ R × 85.05%

Agirc-Arrco share = R − URSSAF share ≈ R × 14.95%

Rounding is carried out to the nearest cent. The difference between the two formulas is minimal, but it must be respected, failing which the collecting bodies may reject the filing.

What are the rules on non-combination and combination of the general reduction with other schemes?

The principle of non-combination for the same risk prohibits combining the general reduction with another relief affecting a contribution already included in the T scope. Where such a combination is possible, the employer must opt for the more favourable scheme. For example, an employer cannot combine the general reduction with a ZFU-TE (urban tax-free zone) exemption covering the same contributions: it must choose one or the other.

Conversely, combinations are permitted with measures affecting contributions or levies located outside the T scope. Thus, the general reduction may be combined with:

The flat-rate employer deduction on overtime (companies with fewer than 20 employees, then from 20 to 249 employees);
Exemptions from vocational training contributions;
Specific overseas exemptions (LODEOM), under the conditions provided by the applicable legislation.

How to declare the general reduction in the DSN?

Declaring the general reduction in the DSN (the French unified social declaration) is subject to specific codes:

CTP 668: general reduction — URSSAF share (negative amount as a deduction);
CTP 669: regularisation of the general reduction — URSSAF share;
CTP 671: general reduction — Agirc-Arrco share;
CTP 801: regularisation of the general reduction — Agirc-Arrco share.

Attribution is made to the month of work (and not the month of payment). In the case of progressive regularisation, adjustments are declared month by month using the corresponding regularisation CTPs. The employer must ensure that the declared amounts correspond exactly to the calculations performed, with the regulatory rounding.

What is the complete operational order for calculating the general reduction?

To avoid any error, here is the order that must be strictly followed:

(i) Calculation of the C coefficient: with 4 decimal places, verifying that C ≤ Cmax (= T);
(ii) Calculation of the amount R: C × gross remuneration, rounded to the nearest euro cent;
(iii) Split according to the key: allocation between the URSSAF share and the Agirc-Arrco share according to the applicable ratios;
(iv) Rounding: each share is rounded to the nearest cent. The sum of the two shares must equal the amount R (with adjustment of the residual share if necessary to avoid rounding discrepancies).

This order is mandatory. Any reversal (for example, splitting before rounding R) can create significant cumulative discrepancies over a full financial year, potentially triggering DSN anomalies.

What are the frequent errors in applying the general reduction?

URSSAF audits regularly reveal the following errors:

1. Use of the actual AT/MP rate instead of the 0.49-point flat rate. This is the most costly error: it artificially increases or decreases the T coefficient and therefore the amount of the reduction. A URSSAF reassessment may result in either direction.

2. Taking the bonus-malus unemployment rate into account instead of the general-law rate. The bonus-malus must be neutralised within the T scope. Only the general-law rate of 4.00% is used.

3. Decimal error in calculating the C coefficient. The coefficient must have exactly 4 decimal places. Rounding to 2 decimal places significantly distorts the calculation for remuneration close to the SMIC.

4. Failure to update parameters as of 1 January 2026. The increase in the uncapped old-age rate to 2.11% changes the value of T. Payroll software must be updated accordingly.

5. Prohibited combination with an exemption covering the same risk. The employer must systematically check for the absence of a double benefit on the same risk covered by the T scope.

FAQ — Frequently asked questions on the general reduction of contributions

Does the general reduction apply to apprentices?

No. Since 1 January 2019, apprenticeship contracts have benefited from a specific exemption (Article L.6243-2 of the French Labour Code) that replaces the general reduction. Apprentices are therefore not eligible for the RGDU, but benefit from their own regime that is at least as favourable.

How should part-time employees be treated in calculating the reduction?

For part-time employees, the SMIC taken into account in the C coefficient formula is prorated according to the contractual working time relative to the statutory working time. For example, an employee working 80% will have the reference annual SMIC multiplied by 0.80. This proration is automatic in most payroll software.

What happens if the calculated C coefficient is negative?

Since 2026, the question arises differently: the coefficient does not become negative, it hits the Tmin floor of 0.0200 as long as annual remuneration remains below 3 times the SMIC. However, as soon as remuneration reaches 3 times the SMIC, the employer is no longer eligible and the reduction falls to zero for the financial year. Under progressive regularisation, one month may therefore give rise to the reduction and another may not, with regularisation being carried out by offsetting on an annual basis.

Can the general reduction be combined with the CICE?

The CICE (competitiveness and employment tax credit) was abolished on 1 January 2019 and converted into a permanent reduction in employer contributions, in the form of a reduced health insurance contribution rate. This reduced rate was itself abolished on 1 January 2026 and absorbed by the RGDU. The question of combination therefore no longer arises.

How to regularise at year-end if the progressive method has not been applied?

If the employer has applied the monthly calculation method without progressive regularisation, an annual regularisation must be carried out in December (or on the last payslip of the financial year). The annual amount of the reduction is recalculated on the basis of total annual remuneration, and the difference from the sum of the monthly reductions is applied (upwards or downwards) to the last payslip. This regularisation is declared in the DSN using CTP 669 and 801.

For any question on applying the general reduction within your company, contact our firm. We can audit your payslips and secure your calculations ahead of any potential URSSAF audit.