French Labour Law

How to Handle Partial Activity in Payroll in 2025: Comprehensive Guide

DAIRIA Law · 2026-06-23 · 10 min

How to Handle Partial Activity in Payroll in 2025: Comprehensive Guide

Introduction: Partial Activity, a Key Tool in Payroll

Partial activity, formerly known as partial unemployment or technical unemployment, is a mechanism that allows companies facing a temporary reduction in activity to decrease their employees’ working hours while ensuring their compensation. This system, widely utilized during the health crisis, remains a fundamental tool for human resources and payroll management in 2025.

Handling partial activity in payroll involves mastering numerous parameters: the calculation of the employee compensation, the employer allocation paid by the ASP (Agence de Services et de Paiement), specific social security regimes (exemption from contributions, reduced CSG/CRDS rates), the proration of the social security ceiling, and implications for the DSN. This comprehensive guide is based on the references from the BOSS (Bulletin Officiel de la Sécurité Sociale) to assist you step by step.

Grounds for Use

Partial activity can be implemented in the following situations (Article L.5122-1 of the French Labour Code):

  • Unfavorable economic conditions;
  • Supply difficulties in raw materials or energy;
  • Exceptional disasters or weather events;
  • Transformation, restructuring, or modernization of the company;
  • Any other exceptional circumstance.

The Application Procedure

The employer must obtain prior authorization from the DDETS (Departmental Directorate of Employment, Labour and Solidarity) before placing their employees in partial activity, except in exceptional circumstances that allow for a post hoc application within 30 days. The application is made online through the portal activitepartielle.emploi.gouv.fr.

Authorization is granted for a maximum duration of 3 months, renewable, within a limit of 6 months (consecutive or not) over a reference period of 12 months.

Compensation for Employees in Partial Activity

In 2025, an employee placed in partial activity receives an hourly compensation paid by the employer corresponding to:

Compensation = 60% of the reference gross hourly wage.

This compensation cannot be lower than the net hourly minimum wage (SMIC), approximately €9.23 in 2025 (gross SMIC €11.88 × approximate coefficient). Employees on learning or professionalization contracts receive compensation proportional to their usual remuneration.

The Reference Gross Hourly Wage

The reference wage used to calculate compensation is determined according to the following rules:

  • It includes the base salary, and recurring work-related bonuses (e.g., seniority bonus, job bonus);
  • It excludes reimbursement of expenses, exceptional bonuses, and elements of remuneration not related to actual work;
  • The hourly rate is obtained by dividing the monthly reference wage by the legal monthly duration (151.67 hours) or the contractual duration for part-time workers.

Example: An employee earns a gross monthly salary of €2,800 for 151.67 hours. Their reference hourly rate is: 2,800 / 151.67 = €18.46. Their hourly partial activity compensation is: 18.46 × 60% = €11.08 gross.

Minimum Wage Protection

If the calculation of 60% of the gross hourly wage results in an amount lower than the net hourly minimum wage (SMIC), the compensation is increased to the level of the net hourly minimum wage. This rule protects the lower-paid employees.

Example: An employee on minimum wage (gross €11.88/hour). 60% × 11.88 = 7.13. Since this amount is lower than the net hourly minimum wage (~€9.23), the compensation will be raised to €9.23 per hour not worked.

Employer Allocation Paid by the ASP

Amount of the Allocation

The employer receives a partial activity allocation from the State, paid by the ASP (Agence de Services et de Paiement). In 2025, for the standard regime, this allocation amounts to:

36% of the reference gross hourly wage, with a minimum of €8.30 per hour.

The employer therefore bears a remaining charge that corresponds to the difference between the compensation paid to the employee (60% of the gross hourly wage) and the allocation received (36% of the gross hourly wage), which is approximately 24% of the gross hourly wage.

Reimbursement Application Procedure

The employer must submit their compensation request on the activitepartielle.emploi.gouv.fr portal within 12 months following the end of the authorized partial activity period. The application specifies, for each employee, the number of hours not worked and the compensation paid.

Social Security Regime of Partial Activity Compensation

Exemption from Social Security Contributions

According to the BOSS, the partial activity compensation is exempt from social security contributions (health, old-age, family allowances, work accidents). It is also exempt from Agirc-Arrco complementary retirement contributions and unemployment contributions.

This exemption applies to the legal compensation of 60% as well as any additional compensation paid by the employer within the limit of 70% of the gross hourly wage (3.15 times the SMIC).

Reduced CSG and CRDS Rates

Partial activity compensation is subject to CSG at a rate of 6.20% (instead of 9.20% on earned income) and CRDS at a rate of 0.50%. These contributions apply after a 1.75% deduction for professional expenses, on 98.25% of the compensation.

The reduced CSG rate (6.20%) corresponds to the rate applicable to replacement income, as partial activity compensation is considered a form of replacement income for the purposes of CSG/CRDS.

Important: The CSG/CRDS cannot reduce the net compensation below the gross minimum wage (SMIC). If so, the CSG/CRDS is capped to maintain this minimum level.

Complementary Maintenance by the Employer

If the employer decides to maintain all or part of the salary beyond the legal compensation of 60%, the social regime depends on the level of maintenance:

  • Up to 70% of the gross hourly wage (within the limit of 3.15 SMIC): the additional compensation benefits from the same favorable regime (exemption from social security contributions, reduced CSG/CRDS);
  • Above: the excess part is subject to social contributions just like regular salary.

Proration of the Social Security Ceiling

Case of Temporary Closure

In the case of a total closure of the establishment (partial activity at zero hours), the social security ceiling must be prorated based on the calendar days of absence. According to the BOSS:

Reduced ceiling = Monthly ceiling × (Calendar days worked / Calendar days in the month)

Example: An employee placed in total partial activity from March 1 to March 15, 2025 (in a month of 31 calendar days). They work from March 16 to March 31, totaling 16 calendar days. Reduced ceiling = 3,925 € × (16 / 31) = 2,025.81 €.

Case of Hourly Reduction

In the case of a reduction in working hours (the employee works reduced hours), the social security ceiling is reduced according to the same rules as for part-time work:

Reduced ceiling = Monthly ceiling × (Hours worked + compensated hours) / Legal monthly duration.

However, in practice, the method adopted by BOSS for partial activity with reduced hours is to prorate by calendar days of absence when the absence covers full days.

Part-Time and Partial Activity: Cumulative Reductions

When a part-time employee is placed in partial activity, the two ceiling reductions accumulate:

  • First reduction: proration related to part-time (contractual duration / legal duration);
  • Second reduction: proration related to partial activity (days or compensated hours).

Example: An employee working 80% (121.33 hours/month) placed in total partial activity for 10 days in a 30-day month. Part-time ceiling = 3,925 × (121.33 / 151.67) = 3,139.40 €. Ceiling after partial activity = 3,139.40 × (20 / 30) = 2,092.93 €.

Treatment in DSN

Declaration of Hours and Compensation

Partial activity must be declared in DSN with the following elements:

  • The number of hours not worked in the “Activity” block;
  • The reason for suspension or reduction of activity;
  • The amount of compensation paid to the employee;
  • If applicable, the complementary salary maintenance.

Absence reason codes and specific sections must be accurately filled out to allow automated processing by social organizations and the ASP.

Impact on Declared Contributions

The DSN must faithfully reflect the specific social regime of the partial activity compensation: absence of social contributions on the exempt part, reduced CSG/CRDS rates, and, if applicable, normal contributions on the complementary maintenance exceeding 70% of the gross amount.

Complete Payroll Example with Partial Activity in 2025

Example Data

  • Usual gross monthly salary: 2,800 € for 151.67 hours
  • Hours worked in the month: 100 hours
  • Hours not worked (partial activity): 51.67 hours
  • Gross hourly rate: 2,800 / 151.67 = 18.46 €

Compensation Calculation

Gross salary for hours worked: 100 × 18.46 = 1,846.00 €

Partial activity compensation: 51.67 × (18.46 × 60%) = 51.67 × 11.08 = 572.50 €

Total gross compensation: 1,846.00 + 572.50 = 2,418.50 €

Social Contributions

On the 1,846.00 € salary: regular contributions (approximately 22% employee contributions) = ~406.12 €

On the 572.50 € partial activity compensation:

  • No social contributions, retirement, or unemployment contributions;
  • CSG (6.20%) on 98.25% = 572.50 × 98.25% × 6.20% = 34.86 €
  • CRDS (0.50%) on 98.25% = 572.50 × 98.25% × 0.50% = 2.81 €

Partial Activity vs Long-Term Partial Activity (APLD)

Key Differences

APLD (Activité Partielle de Longue Durée), rebranded as ALPD in some communications, is a specific system that differs from standard partial activity by:

  • A longer duration (up to 36 months over 48 months);
  • A potentially higher employee compensation rate (70% of gross hourly wage);
  • A higher employer allocation rate;
  • The requirement for a collective agreement or a unilateral document compliant with a sector agreement.

The social regime of APLD is identical to that of standard partial activity: exemption from social security contributions and reduced CSG/CRDS on compensation up to 70% of gross.

Best Practices for Payroll Managers

Essential Control Points

  • Verify the proration of the social security ceiling based on days or hours of absence;
  • Ensure the application of the reduced CSG rate (6.20% instead of 9.20%) on compensation;
  • Check the minimum net SMIC protection for low-paid employees;
  • Confirm the treatment of any complementary maintenance (different social regime beyond 70%);
  • Reconcile the hours declared in DSN with the compensated hours for the ASP allocation request.

Common Mistakes to Avoid

  • Applying social contributions to partial activity compensation;
  • Using the 9.20% CSG rate (on earned income) instead of 6.20% (on replacement income);
  • Forgetting to prorate the social security ceiling;
  • Failing to distinguish the complementary maintenance regime above 70%;
  • Incorrectly declaring hours not worked in DSN.

FAQ: Partial Activity in Payroll

Is partial activity compensation taxable?

Yes. Partial activity compensation is subject to income tax. It is included in the employee’s net taxable income and is part of the withholding at source (PAS). Only the deductible CSG (3.80% for replacement income) reduces the net taxable income.

How to calculate the social security ceiling in case of partial activity for part of the month?

In case of total closure, the ceiling is prorated by calendar days: monthly ceiling × (calendar days worked / calendar days in the month). In case of hourly reduction, proration is done according to the same rules as for part-time work or full days of absence. In 2025, the monthly SS ceiling is €3,925.

Is it possible for the employer to maintain 100% salary?

Yes, but the social regime differs beyond 70% of the gross hourly wage. The portion of additional compensation exceeding 70% of the gross remuneration (within the limit of 3.15 SMIC) is subject to social contributions as salary. The employer must therefore distinguish between the exempt part and the subject part on the payslip.

Can day-rate employees be placed on partial activity?

Yes. Employees on day rates can be placed in partial activity in the event of a reduction in the hours normally practiced in the establishment or temporary closure. Compensation is calculated based on the reference remuneration and the hours corresponding to the applicable legal duration.

Does partial activity affect the acquisition of paid leave?

Yes. The hours not worked due to partial activity are taken into account for the calculation of paid leave rights, per Article L.5122-1 of the Labour Code. Therefore, the employee continues to acquire paid leave during periods of partial activity.

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