French Labour Law

Short-Time Work (Activité Partielle) and Payroll in France: A Complete 2026 Guide for Employers

DAIRIA Law · 2026-08-04 · 11 min

Short-Time Work (Activité Partielle) and Payroll in France: A Complete 2026 Guide for Employers

Introduction: Short-Time Work, a Key Payroll Mechanism

Short-time work (activité partielle, formerly known as chômage partiel or chômage technique, i.e. partial/technical unemployment) is a scheme that allows companies facing a temporary reduction in activity to cut their employees’ working hours while guaranteeing them compensation. This mechanism, widely used during the health crisis, remains a structuring tool for human resources and payroll management in 2026.

Handling short-time work in payroll requires mastering numerous parameters: calculating the employee allowance (indemnité salarié), the employer allowance (allocation employeur) paid by the ASP (Agence de Services et de Paiement, the state’s Services and Payment Agency), the specific social regime (exemption from contributions, reduced-rate CSG/CRDS), the proration of the Social Security ceiling, and the impacts on the DSN (Déclaration Sociale Nominative, the mandatory monthly payroll declaration). This complete guide draws on the references of the BOSS (Bulletin Officiel de la Sécurité Sociale, the Official Bulletin of Social Security) to guide you step by step.

Grounds for Use

Short-time work may be implemented in the following situations (Article L.5122-1 of the French Labour Code):

  • Unfavourable economic conditions;
  • Supply difficulties for raw materials or energy;
  • Disaster or exceptional bad weather;
  • Transformation, restructuring or modernisation of the company;
  • Any other circumstance of an exceptional nature.

The Application Procedure

The employer must obtain prior authorisation from the DDETS (Direction Départementale de l’Emploi, du Travail et des Solidarités, the departmental labour and employment authority) before placing its employees on short-time work, except in exceptional circumstances allowing a retrospective application within 30 days. The application is submitted online on the activitepartielle.emploi.gouv.fr portal.

Authorisation is granted for a maximum period of 3 months, renewable, up to a limit of 6 months (consecutive or not) over a 12-month reference period.

Compensating the Employee on Short-Time Work

Calculating the Statutory Allowance

Under ordinary law, an employee placed on short-time work receives an hourly allowance paid by the employer corresponding to:

Allowance = 60% of the reference gross hourly pay

This allowance may not be lower than a net hourly floor set by decree (Articles L.5122-1 and R.5122-18 of the French Labour Code), periodically revalued — check the value in force at urssaf.fr. This floor is a fixed statutory amount (it does not correspond to the “net SMIC”, the net minimum wage). Employees on apprenticeship or professionalisation contracts receive an allowance according to specific rules.

The Reference Gross Hourly Pay

The reference pay used to calculate the allowance is determined according to the following rules:

  • It includes the base salary and recurring bonuses linked to work (seniority bonus, position bonus, etc.);
  • It excludes expense reimbursements, exceptional bonuses, and pay elements not linked to actual work;
  • The hourly rate is obtained by dividing the reference monthly pay by the statutory monthly working time (151.67 hours) or the contractual working time for part-time employees.

Example: An employee receives a gross monthly salary of €2,800 for 151.67 hours. Their reference hourly rate is: 2,800 / 151.67 = €18.46. Their hourly short-time work allowance is: 18.46 × 60% = €11.08 gross.

The SMIC Floor

If calculating 60% of the reference gross hourly pay results in an amount lower than the statutory floor of the allowance, the allowance is raised to that floor. This rule protects the lowest-paid employees.

Example: An employee on the SMIC (€12.31 gross/hour, as of 1 June 2026). 60% × 12.31 = €7.39. As this amount is lower than the statutory floor of the allowance, the allowance is raised to that floor (the amount in force published by the URSSAF).

The Employer Allowance Paid by the ASP

The Amount of the Allowance

The employer receives a short-time work allowance from the State, paid by the ASP (Agence de Services et de Paiement). For the ordinary-law regime, this allowance amounts to:

36% of the reference gross hourly pay, with an hourly floor periodically revalued (check the value in force at urssaf.fr).

The employer therefore bears a remaining cost corresponding to the difference between the allowance paid to the employee (60% of gross hourly pay) and the allowance received (36% of gross hourly pay), i.e. approximately 24% of gross hourly pay.

Reimbursement Claim Procedure

The employer must submit its compensation claim on the activitepartielle.emploi.gouv.fr portal within a period of 12 months following the end of the authorised short-time work period. The claim specifies, for each employee, the number of hours not worked and the allowance paid.

The Social Regime of the Short-Time Work Allowance

Exemption from Social Security Contributions

In accordance with the BOSS, the short-time work allowance is exempt from Social Security contributions (health, retirement, family allowances, occupational accidents). It is also exempt from Agirc-Arrco supplementary pension contributions and from unemployment contributions.

This exemption applies to the statutory 60% allowance as well as to any supplementary allowance paid by the employer within the limit of 70% of the reference gross hourly pay (3.15 times the SMIC).

Reduced-Rate CSG and CRDS

The short-time work allowance is subject to CSG at a rate of 6.20% (instead of 9.20% on earned income) and to CRDS at a rate of 0.50%. These contributions apply after the 1.75% allowance for professional expenses, on 98.25% of the allowance.

The reduced CSG rate (6.20%) corresponds to the rate applicable to replacement income, the short-time work allowance being treated as replacement income for CSG/CRDS purposes.

Important: CSG/CRDS cannot bring the net allowance below the gross SMIC. If this is the case, CSG/CRDS is capped to comply with this floor.

Supplementary Top-Up by the Employer

If the employer decides to maintain all or part of the pay beyond the statutory 60% allowance, the social regime depends on the level of the top-up:

  • Up to 70% of gross hourly pay (within the limit of 3.15 SMIC): the supplementary allowance benefits from the same favourable regime (exemption from SS contributions, reduced-rate CSG/CRDS);
  • Above that: the excess portion is treated as salary, i.e. subject to all social contributions (employer and employee) in the same way as ordinary pay.

Proration of the Social Security Ceiling

Case of Temporary Closure

In the event of a total closure of the establishment (short-time work at zero hours), the Social Security ceiling must be prorated based on the calendar days of absence. In accordance with the BOSS:

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

Example: An employee placed on total short-time work from 1 to 15 March 2026 (a 31-calendar-day month). They work from 16 to 31 March, i.e. 16 calendar days. Reduced ceiling = €4,005 × (16 / 31) = €2,067.10.

Case of Reduced Working Hours

In the event of a reduction in working time (the employee works reduced hours), the Social Security ceiling is reduced according to the same terms as for a part-time employee:

Reduced ceiling = Monthly ceiling × (Hours worked + hours compensated) / Statutory monthly working time

However, in practice, the method adopted by the BOSS for short-time work with reduced hours consists of prorating by calendar days of absence when the absence covers full days.

Part-Time and Short-Time Work: Combining the Reductions

When a part-time employee is placed on short-time work, the two ceiling reductions are combined:

  • First reduction: proration linked to part-time work (contractual working time / statutory working time);
  • Second reduction: proration linked to short-time work (days or hours of absence).

Example: An employee working 80% (121.33 h/month) placed on total short-time work for 10 days in a 30-day month. Part-time ceiling = 4,005 × (121.33 / 151.67) = €3,203.84. Ceiling after short-time work = 3,203.84 × (20 / 30) = €2,135.89.

Processing in the DSN

Declaring Hours and Allowances

Short-time work must be declared in the 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 the allowance paid to the employee;
  • Where applicable, the supplementary top-up of pay.

The absence reason codes and the specific fields must be correctly filled in to enable automated processing by the social bodies and the ASP.

Impact on Declared Contributions

The DSN must faithfully reflect the specific social regime of the short-time work allowance: absence of SS contributions on the exempt portion, reduced-rate CSG/CRDS, and, where applicable, normal contributions on the supplementary top-up exceeding 70% of gross pay.

Complete Example of a Payslip with Short-Time Work in 2026

Example Data

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

Calculation of Pay

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

Short-time work allowance: 51.67 × (18.46 × 60%) = 51.67 × 11.08 = €572.50

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

Social Contributions

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

On the €572.50 of short-time work allowance:

  • No SS, 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

Short-Time Work vs Long-Term Short-Time Work (APLD)

The Key Differences

APLD (Activité Partielle de Longue Durée, long-term short-time work), referred to as ALPD in some communications, is a specific scheme that differs from ordinary-law short-time work in the following respects:

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

The social regime of the APLD is identical to that of ordinary-law short-time work: exemption from SS contributions and reduced-rate CSG/CRDS on the allowance within the limit of 70% of gross pay.

Best Practices for Payroll Managers

Essential Control Points

  • Check the proration of the SS ceiling based on days or hours of absence;
  • Ensure the application of the reduced CSG rate (6.20% instead of 9.20%) on the allowance;
  • Verify the net SMIC floor for low-paid employees;
  • Check the treatment of any supplementary top-up (different social regime above 70%);
  • Reconcile the hours declared in the DSN with the compensated hours for the ASP allowance claim.

Common Mistakes to Avoid

  • Applying SS contributions to the short-time work allowance;
  • Using the 9.20% CSG rate (earned income) instead of 6.20% (replacement income);
  • Forgetting to prorate the SS ceiling;
  • Failing to distinguish the regime of the supplementary top-up above 70%;
  • Incorrectly declaring the hours not worked in the DSN.

FAQ: Short-Time Work in Payroll

Is the short-time work allowance taxable?

Yes. The short-time work allowance is subject to income tax. It is included in the employee’s taxable net pay and falls within the scope of withholding tax (PAS, prélèvement à la source). Only the deductible CSG (3.80% in the case of replacement income) reduces the taxable net pay.

How is the SS ceiling calculated for short-time work over part of the month?

In the event of a total closure, the ceiling is prorated by calendar days: monthly ceiling × (calendar days worked / calendar days in the month). In the event of reduced hours, proration is carried out according to the same rules as part-time work or by full days of absence. In 2026, the monthly SS ceiling is €4,005.

Is maintaining 100% of the salary by the employer possible?

Yes, but the social regime differs above 70% of gross hourly pay. The portion of supplementary allowance exceeding 70% of gross pay (within the limit of 3.15 SMIC) is subject to social contributions as salary. The employer must therefore distinguish the exempt portion and the subject portion on the payslip.

Can employees on a day-based fixed rate (forfait jours) be placed on short-time work?

Yes. Employees on a day-based fixed rate (forfait jours) may be placed on short-time work in the event of a reduction in the hours usually worked in the establishment or a temporary closure. The allowance is calculated on the basis of the reference pay and the hours corresponding to the applicable statutory working time.

Does short-time work have an impact on the accrual of paid leave?

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

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