French Labour Law

Short-Time Work (Activité Partielle) in French Payroll 2026: A Complete Employer Guide

DAIRIA Law · 2026-09-01 · 11 min

Short-Time Work (Activité Partielle) in French Payroll 2026: A Complete Employer Guide

Introduction: short-time work, a key payroll mechanism

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

Processing short-time work in payroll requires mastering many parameters: calculating the employee allowance (indemnité salarié), the employer allowance (allocation employeur) paid by the ASP (Agence de Services et de Paiement, the State Services and Payment Agency), the specific social regime (contribution exemption, reduced-rate CSG/CRDS), the pro-rating of the Social Security ceiling, and the implications for the DSN (Déclaration Sociale Nominative, the payroll social declaration). This complete guide draws on the references of the BOSS (Bulletin Officiel de la Sécurité Sociale, the Official Social Security Bulletin) 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 weather events;
  • 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 Directorate for Employment, Labour and Solidarity) before placing its employees on short-time work, except in exceptional circumstances allowing a subsequent 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 current value on 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 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 short-time work allowance is: 18.46 × 60% = €11.08 gross.

The SMIC floor

If calculating 60% of the 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 at 1 June 2026). 60% × 12.31 = €7.39. As this amount is below the statutory floor of the allowance, the allowance is raised to that floor (current amount published by 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 current value on 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 application procedure

The employer must submit its reimbursement application on the activitepartielle.emploi.gouv.fr portal within 12 months following the end of the authorised short-time work period. The application 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, workplace accidents). It is also exempt from Agirc-Arrco supplementary pension contributions and unemployment contributions.

This exemption applies to the statutory 60% allowance as well as to any supplementary allowance paid by the employer up to a limit of 70% of the 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 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, as the short-time work allowance has the nature of replacement income for CSG/CRDS purposes.

Important: CSG/CRDS cannot bring the net allowance below the gross SMIC. Where this would be the case, CSG/CRDS is capped to respect 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 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 (SS contribution exemption, reduced-rate CSG/CRDS);
  • Beyond this: the excess portion is treated as salary, i.e. subject to all social contributions (employer and employee) in the same way as ordinary pay.

Pro-rating the Social Security ceiling

Temporary closure scenario

In the event of a total closure of the establishment (short-time work at zero hours), the Social Security ceiling must be pro-rated according to 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 full short-time work from 1 to 15 March 2026 (a month with 31 calendar days). They work from 16 to 31 March, i.e. 16 calendar days. Reduced ceiling = €4,005 × (16 / 31) = €2,067.10.

Reduced-hours scenario

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 part-time work:

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

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

Part-time and short-time work: combining reductions

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

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

Example: An employee at 80% (121.33 h/month) placed on full 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 specific fields must be correctly completed to allow 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.

Full example of a payslip with short-time work in 2026

Data for the example

  • 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

Calculating 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, pension 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) is a specific scheme that differs from ordinary-law short-time work in the following ways:

  • 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 an industry-wide agreement.

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

Best practices for payroll managers

Essential control points

  • Check the pro-rating of the SS ceiling according to the 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 beyond 70%);
  • Reconcile the hours declared in the DSN with the hours compensated for the ASP allowance application.

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 the pro-rating of the SS ceiling;
  • Failing to distinguish the regime for the supplementary top-up beyond 70%;
  • Incorrectly declaring 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 forms part of the base for the withholding tax (prélèvement à la source, PAS). 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 total closure, the ceiling is pro-rated in calendar days: monthly ceiling × (calendar days worked / calendar days in the month). In the event of reduced hours, the pro-rating is done according to the same rules as part-time work or by full days of absence. In 2026, the monthly SS ceiling is €4,005.

Can the employer maintain 100% of the salary?

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

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

Yes. Employees on a forfait jours (day-based flat-rate arrangement) may be placed on short-time work in the event of a reduction in the hours usually worked in the establishment or of 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 affect 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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