Introduction: Partial Activity, a Key Payroll Mechanism

Partial activity, formerly known as short-time work or technical unemployment, is a mechanism that allows companies facing a temporary reduction in activity to reduce their employees’ working hours while ensuring them compensation. This mechanism, widely utilized during the health crisis, remains a pivotal tool in human resource management and payroll in 2025.

Managing partial activity in payroll requires mastery of many parameters: calculating the employee indemnity, the employer allowance paid by the ASP (Agences de Services et de Paiement), the specific social regime (exemption from contributions, reduced CSG/CRDS), the pro-rata calculation of the social security ceiling, and implications for the DSN (Dép déclaration Sociale Nominative). This comprehensive guide is based on references from the BOSS (Bulletin Officiel de la Sécurité Sociale) to support you step-by-step.

The Legal Framework of Partial Activity

Reasons for Implementation

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

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

The Application Procedure

The employer must obtain prior authorization from the DDETS (Direction Départementale de l’Emploi, du Travail et des Solidarités) before placing employees in partial activity, unless exceptional circumstances allow for a subsequent request within 30 days. The request is made online at the portal activitepartielle.emploi.gouv.fr.

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

Employee Indemnity in Partial Activity

Calculation of the Legal Indemnity

In 2025, an employee placed in partial activity receives a hourly indemnity paid by the employer equal to:

Indemnity = 60% of the reference gross hourly wage

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

Reference Gross Hourly Wage

The reference wage serving as the basis for indemnity calculation is determined according to the following rules:

It includes the basic salary, recurring bonuses related to work (seniority bonus, position bonus, etc.);
It excludes expense reimbursements, exceptional bonuses, and elements of remuneration not related to actual work;
The hourly rate is obtained by dividing the monthly reference remuneration by the legal monthly duration (151.67 hours) or the contractual duration for part-time work.

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 indemnity for partial activity is: €18.46 × 60% = €11.08 gross.

SMIC Minimum

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

Example: An employee at SMIC (gross €11.88/hour). 60% × €11.88 = €7.13. This amount being below the net hourly SMIC (~€9.23), the indemnity will be set at €9.23 per hour not worked.

Employer Allowance Paid by ASP

Amount of the Allowance

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

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

The employer thus bears a cost representing the difference between the indemnity paid to the employee (60% of the gross hourly wage) and the allowance received (36% of the gross hourly wage), approximately 24% of the gross hourly wage.

Reimbursement Application Procedure

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

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

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

Reduced CSG and CRDS Rates

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

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

Important: CSG/CRDS cannot bring the net indemnity below the gross SMIC. If this occurs, the CSG/CRDS is capped to respect this minimum.

Complementary Maintenance by the Employer

If the employer decides to maintain all or part of the remuneration beyond the legal indemnity 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 complementary indemnity benefits from the same favorable regime (exemption from social contributions, reduced CSG/CRDS);
Beyond: the excess portion is subjected like a salary, that is, it is subject to all social contributions (employer and employee) just like usual remuneration.

Case of Temporary Closure

In case of total closure of the establishment (zero hours partial activity), the social security ceiling must be pro-rated according to the calendar days of absence. According to the BOSS:

Reduced Ceiling = Monthly Ceiling × (Calendar Days Worked / Calendar Days of the Month)

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

Case of Hourly Reduction

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

Reduced Ceiling = Monthly Ceiling × (Hours Worked + Indemnified Hours) / Legal Monthly Duration

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

Part-Time Work and Partial Activity: Cumulative Reductions

When a part-time employee is placed in partial activity, both ceiling reductions are cumulative:

First reduction: prorating related to part-time (contractual duration / legal duration);
Second reduction: prorating related to partial activity (days or hours of absence).

Example: An 80% employee (121.33 h/month) placed on 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.

The Handling in the DSN

Declaration of Hours and Indemnities

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

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

Motif absence codes and specific sections must be accurately filled out to allow for 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 indemnity: absence of social contributions on the exempt part, reduced CSG/CRDS, and, where applicable, normal contributions on the complementary maintenance exceeding 70% of the gross.

Complete Example of a Payslip with Partial Activity in 2025

Example Data

Typical 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

Salary Calculation

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

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

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

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

On the €572.50 partial activity indemnity:

No social contributions, retirement, unemployment;
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), renamed ALPD in some communications, is a specific mechanism that differs from standard partial activity by:

A longer duration (up to 36 months over 48 months);
Potentially higher indemnity for employees (70% of gross hourly wage);
Higher employer allowance;
The necessity of a collective agreement or unilateral document compliant with a branch agreement.

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

Best Practices for Payroll Managers

Essential Checklist Points

Verify the pro-rata calculation of the SS ceiling based on the days or hours of absence;
Ensure the application of the reduced CSG rate (6.20% instead of 9.20%) on the indemnity;
Check the net SMIC minimum for lower-paid employees;
Verify the treatment of any complementary maintenance (different social regime beyond 70%);
Reconcile hours declared in the DSN with hours indemnified for ASP allocation request.

Common Mistakes to Avoid

Applying SS contributions on the partial activity indemnity;
Using the 9.20% CSG rate (activity earnings) instead of the 6.20% (replacement income);
Forgetting the pro-rata calculation of the SS ceiling;
Not distinguishing the regime of complementary maintenance beyond 70%;
Incorrectly declaring hours not worked in the DSN.

FAQ: Partial Activity in Payroll

Is the partial activity indemnity taxable?

Yes. The partial activity indemnity 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 amount.

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

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

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

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

Can employees on fixed-day contracts be placed in partial activity?

Yes. Employees on fixed-day contracts can be placed in partial activity in case of reduction in the usual working hours in the establishment or temporary closure. The indemnity is calculated based on the reference remuneration and hours corresponding to the applicable legal duration.

Does partial activity impact the acquisition of paid leave?

Yes. The hours not worked under partial activity are taken into account for calculating paid leave rights, in accordance with Article L.5122-1 of the French Labour Code. The employee continues to accrue paid leave during periods of partial activity.

How to Manage Partial Activity in Payroll in 2025: A Complete Guide