French Labour Law

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

DAIRIA Law · 2026-08-11 · 11 min

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

Introduction: Short-Time Work, a Key Payroll Mechanism

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

Processing short-time work in payroll requires mastering many parameters: the calculation of 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 social taxes), the proration of the Social Security ceiling, and the impacts on the DSN (Déclaration Sociale Nominative, the mandatory monthly social 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;
  • Exceptional disaster or adverse 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 Directorate for Employment, Labour and Solidarity) 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.

Compensation of the Employee on Short-Time Work

Calculation of the Statutory Allowance

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

Allowance = 60% of the reference gross hourly remuneration

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”, i.e. the net minimum wage). Employees on apprenticeship or professional training contracts receive an allowance under specific rules.

The Reference Gross Hourly Remuneration

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

  • It includes the base salary and recurring bonuses related to work (seniority bonus, position bonus, etc.);
  • It excludes expense reimbursements, exceptional bonuses, and remuneration items not linked to actual work;
  • The hourly rate is obtained by dividing the reference monthly remuneration 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 the calculation of 60% of the gross hourly remuneration 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 at the SMIC (€12.31 gross/hour, as at 1 June 2026). 60% × 12.31 = €7.39. As this amount is lower than the statutory floor of the allowance, it 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 remuneration, with an hourly floor revalued periodically (check the current value on urssaf.fr).

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

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, old-age, 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 remuneration (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: The CSG/CRDS cannot reduce the net allowance below the gross SMIC. If this is the case, the 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 remuneration beyond the statutory 60% allowance, the social regime depends on the level of top-up:

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

Proration of the Social Security Ceiling

Case of Temporary Closure

In the event of total closure of the establishment (short-time work at zero hours), the Social Security ceiling must be prorated based on 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 month of 31 calendar days). They work from 16 to 31 March, i.e. 16 calendar days. Reduced ceiling = €4,005 × (16 / 31) = €2,067.10.

Case of Hours Reduction

In the event of a reduction in working time (the employee works reduced hours), the Social Security ceiling is reduced according to the same procedures 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 an hours reduction 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 related to part-time work (contractual working time / statutory working time);
  • Second reduction: proration related to short-time work (days or hours of absence).

Example: An employee at 80% (121.33 h/month) placed on total short-time work for 10 days in a month of 30 days. 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

Reporting of Hours and Allowances

Short-time work must be reported in the DSN with the following elements:

  • The number of hours not worked in the “Activity” block;
  • The reason for the suspension or reduction of activity;
  • The amount of the allowance paid to the employee;
  • Where applicable, the supplementary top-up of remuneration.

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

Impact on Reported Contributions

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

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 Remuneration

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

Social Contributions

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

On the €572.50 of short-time work allowance:

  • No Social Security, 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), sometimes referred to as ALPD in certain communications, is a specific mechanism 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 the gross hourly rate);
  • A higher employer allowance rate;
  • The need for a collective agreement or a unilateral document compliant with a branch-level agreement.

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

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 reported in the DSN with the hours compensated for the ASP allowance application.

Common Mistakes to Avoid

  • Applying Social Security contributions to the short-time work allowance;
  • Using the CSG rate of 9.20% (earned income) instead of 6.20% (replacement income);
  • Forgetting to prorate the SS ceiling;
  • Failing to distinguish the regime for the supplementary top-up above 70%;
  • Incorrectly reporting 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 income and forms part of the withholding tax (PAS) base. Only the deductible CSG (3.80% in the case of replacement income) reduces the taxable net income.

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

In the event of total closure, the ceiling is prorated by calendar days: monthly ceiling × (calendar days worked / calendar days in the month). In the event of an hours reduction, proration is carried out according to the same rules as for 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 above 70% of the gross hourly rate. The portion of the supplementary allowance 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 on the payslip the exempt portion and the portion subject to contributions.

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

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

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

Yes. Hours not worked due to short-time work are taken into account for the calculation of 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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