Sick Leave and Subrogation in France: Social Security Daily Allowances, Waiting Period and Payroll

Introduction: sick leave and subrogation, complex but essential mechanisms

Managing sick leave in payroll is one of the most complex operations for payroll administrators. It requires mastering, simultaneously, the calculation of social security daily allowances (IJSS – indemnités journalières de sécurité sociale), the subrogation mechanism (whereby the employer is subrogated to the employee’s rights and collects the IJSS directly), the employer’s salary maintenance (statutory or collectively bargained), and the impacts on social security contributions and the social security ceiling.

The BOSS (Bulletin Officiel de la Sécurité Sociale – the official social security bulletin) provides decisive guidance on these matters, in particular on the reduction of the ceiling in the event of subrogation and the maintenance of supplementary social protection (PSC – protection sociale complémentaire) during the suspension of the employment contract. This guide walks you through the complete management of sick leave in payroll in 2026.

The waiting period and the calculation of IJSS

The 3-day waiting period

In the event of ordinary sick leave, the social security scheme applies a 3-day waiting period (délai de carence) during which no IJSS is paid. This period runs from the first day of leave prescribed by the doctor. IJSS are paid as from the 4th day of leave.

Exceptions to the waiting period:

• Sick leave for a long-term illness (ALD – affection de longue durée): the waiting period applies only to the first leave
• Workplace accident and occupational illness: no waiting period, IJSS are paid from the day after the leave begins
• Maternity: no waiting period

The employer may be required to compensate for this waiting period depending on the provisions of the applicable collective bargaining agreement. Many agreements provide for salary maintenance from the 1st day of leave, thereby eliminating the effect of the waiting period for the employee.

The calculation of sickness IJSS

Sickness IJSS are calculated according to the following formula:

IJSS = 50% of the basic daily wage (SJB – salaire journalier de base)

The basic daily wage is calculated on the basis of the last 3 months of gross salary preceding the leave, up to a limit of 1.4 times the monthly SMIC (the French statutory minimum wage). This ceiling was lowered from 1.8 to 1.4 SMIC by Decree No. 2025-160 of 20 February 2025, for periods of leave beginning on or after 1 April 2025.

In 2026, with a gross monthly SMIC of €1,867.02 (as of 1 June 2026, on the basis of 35 hours), the ceiling is:

1,867.02 x 1.4 = €2,613.83

The SJB is calculated as follows: salary of the last 3 months (capped) / 91.25 days.

Concrete example:

• Employee with a gross monthly salary of €2,400 (below the ceiling of €2,613.83)
• SJB = (2,400 x 3) / 91.25 = €78.90
• IJSS = 78.90 x 50% = €39.45 per day

For an employee with a salary of €4,000 (above the ceiling of €2,613.83), the salary taken into account is capped:

• SJB = (2,613.83 x 3) / 91.25 = €85.93
• IJSS = 85.93 x 50% = €42.97 per day (maximum IJSS for leave beginning on or after 1 July 2026)

Subrogation: the employer collects the IJSS in place of the employee

Definition and principle of subrogation

Subrogation is the mechanism whereby the employer replaces the employee in collecting the IJSS directly from the social security scheme. In return, the employer advances to the employee the salary maintenance corresponding to the leave period.

The BOSS specifies that subrogation is possible when two conditions are met:

1. The employer maintains all or part of the remuneration during the leave (statutory, collectively bargained or voluntary obligation)
2. The salary maintenance is at least equal to the amount of the IJSS over the same period

Subrogation is not mandatory, but it is very widely used because it simplifies matters for the employee, who receives a regular salary without interruption.

Full subrogation vs. partial subrogation

Two situations must be distinguished:

• Full subrogation: the employer maintains the entire remuneration (100% of the gross salary) and collects the IJSS as reimbursement. The employee suffers no loss of salary.
• Partial subrogation: the employer maintains only part of the remuneration (for example 90% or 66.66%) and collects the corresponding IJSS.

This distinction is important because it has consequences for the applicable social security ceiling.

The impact on the social security ceiling

The ceiling reduction rule

The BOSS provides essential guidance on managing the social security ceiling in the event of subrogation:

• If the employer maintains the full remuneration (full subrogation with a top-up), the ceiling is not reduced. The employee is treated as if in normal activity.
• If the employer pays only the IJSS by subrogation (without an employer top-up), the ceiling is reduced in proportion to the period of absence. The subrogated IJSS are subject only to CSG/CRDS at the reduced rate.

This distinction is fundamental for calculating capped contributions (basic pension, Agirc-Arrco tier 1) during the sick leave period.

Example of ceiling reduction

Let us take an employee absent for the entire month of March 2025 (31 calendar days) with a usual gross salary of €3,500.

Case 1: Full salary maintenance

• The employer pays €3,500 gross
• It collects the IJSS by subrogation (approximately €1,380)
• The SS ceiling remains at €4,005 (no reduction)
• Contributions are calculated normally on €3,500

Case 2: Subrogation of IJSS only (without a supplementary top-up)

• The employer pays only the subrogated IJSS (approximately €1,380)
• The ceiling is reduced: €0 (full absence for the month, no activity remuneration)
• The IJSS are subject only to CSG/CRDS at the reduced rate (6.20% CSG + 0.50% CRDS)

Employer salary maintenance: statutory and collectively bargained obligations

Statutory maintenance (the loi de mensualisation)

Under Article L.1226-1 of the French Labour Code, the employer is required to top up the IJSS for employees who can demonstrate at least 1 year of seniority in the company. The maintenance is carried out as follows:

• From the 1st to the 30th day: 90% of the gross remuneration the employee would have received had they worked
• From the 31st to the 60th day: 66.66% (two-thirds) of the same remuneration

These durations are increased by 10 days per 5-year band of seniority, up to a limit of 90 days at 90% and 90 days at 66.66%.

Salary maintenance is understood net of the IJSS: the employer pays only the top-up between the IJSS and the guaranteed maintenance level.

Collectively bargained maintenance

Many collective bargaining agreements provide for more favourable provisions than the law:

• Maintenance at 100% from the 1st day of leave (with no waiting period)
• Longer maintenance durations
• Reduced seniority conditions (6 months, or even no condition)

It is essential to check the applicable collective bargaining agreement to determine the exact maintenance level. Where the agreement contains more favourable provisions, they prevail over the statutory scheme.

Worked example of salary maintenance

An employee with 3 years of seniority, a gross salary of €2,800, on sick leave from 1 to 28 February 2026:

• Calendar days of leave: 28 days
• SS waiting period: 3 days (IJSS from the 4th day)
• Salary €2,800 > 1.4 SMIC ceiling (€2,613.83): the IJSS is capped
• Daily IJSS: €42.97 (maximum amount)
• Number of days compensated by the SS: 25 days
• Total gross IJSS: 42.97 x 25 = €1,074.25
• Maintenance at 90%: 2,800 x 90% = €2,520
• Employer top-up: 2,520 – 1,074.25 = €1,445.75

The payslip will show: the subrogated IJSS (€1,074.25) and the employer top-up (€1,445.75), for a reconstituted gross amount of €2,520.

Social security contributions during sick leave

Treatment of subrogated IJSS

Subrogated IJSS are not subject to standard social security contributions. They are subject only to:

• CSG at the reduced rate of 6.20% (instead of 9.20% for activity income)
• CRDS of 0.50%

The CSG/CRDS base on the IJSS is 100% of the amount of the IJSS (no 1.75% deduction).

Treatment of the employer top-up

The salary top-up paid by the employer is subject to all social security contributions under ordinary law conditions (employee and employer contributions). It is included in the contribution base in the same way as activity salary.

Supplementary social protection (PSC) during sick leave

The BOSS specifies that supplementary social protection (health insurance and death-and-disability cover) must be maintained throughout the entire period of suspension of the employment contract for illness, provided the employee benefits from salary maintenance (full or partial) or from IJSS.

Health insurance and death-and-disability contributions continue to be deducted on the payslip. The base for these contributions is generally calculated on the reconstituted remuneration (what the employee would have received had they worked).

This maintenance is a condition of the mandatory and collective character of the scheme, which is necessary to benefit from the social exemption on employer contributions. Interrupting the scheme during sick leave would jeopardise the exemptions for all staff.

Practical management in payroll software

Step 1: Recording the absence

The first step is to record the sickness absence in the payroll software with the precise start and end dates of the leave. The software automatically calculates:

• The absence deduction (working-days, workable-days or calendar-days method, depending on the configuration)
• The waiting period
• The compensated days

Step 2: Estimating and recording the IJSS

In the absence of a response from the CPAM (a delay of 2 to 4 weeks is frequent), the employer must estimate the IJSS in order to produce the payslip. Payroll software includes an estimation calculation engine. An adjustment will be made upon receipt of the CPAM’s final statement.

Step 3: Calculating salary maintenance

The software applies the maintenance rules (statutory or collectively bargained) and calculates the employer top-up by deducting the IJSS (estimated or actual) from the guaranteed amount.

Step 4: Adjustment

Upon receipt of the CPAM’s final statement, the payroll administrator adjusts any discrepancies between the estimate and the actual amount of the IJSS. This adjustment may take place on a subsequent payslip.

Long-term leave: points requiring attention

For long-term leave (beyond 6 months), several points warrant attention:

• End of employer maintenance: beyond the collectively bargained maintenance duration, only the IJSS and, where applicable, death-and-disability benefits are paid
• Portability of health insurance: in the event of contract termination, the employee benefits from portability for 12 months
• Return-to-work medical examination: mandatory after a leave of more than 60 days (non-occupational illness) or 30 days (workplace accident)
• Employer counter-examination: the employer may have the leave checked by a mandated doctor

FAQ: your questions on sick leave and subrogation in payroll

Is subrogation mandatory for the employer?

No, subrogation is not mandatory as such. However, it becomes automatic when the employer maintains the salary at a level at least equal to the IJSS during the leave period. In practice, once the employer applies salary maintenance (statutory or collectively bargained), it is in its interest to set up subrogation in order to recover the IJSS directly from the CPAM rather than having them pass through the employee. The subrogation request is made via the DSN (déclaration sociale nominative – the nominative social declaration).

How is the employer top-up calculated when the employee is on a therapeutic part-time arrangement?

In the event of a therapeutic part-time arrangement (temps partiel thérapeutique), the employee receives both a salary for the time worked and IJSS for the time not worked. The employer top-up is calculated on the basis of the actual loss of remuneration. The employer compares the reconstituted remuneration (what the employee would have received on a full-time basis) with the sum of the part-time salary and the IJSS, and tops up the difference according to the guaranteed maintenance level.

Is the social security ceiling always reduced during sick leave?

No, the ceiling is not reduced if the employer maintains the full remuneration. The ceiling reduction occurs only where the employer pays solely the subrogated IJSS without a top-up, or where the top-up does not restore the usual full remuneration. The BOSS specifies that maintaining the full remuneration neutralises the ceiling reduction.

Are subrogated IJSS included in the net social amount (MNS) base?

Yes, IJSS paid by subrogation are taken into account in calculating the MNS (montant net social – the net social amount). They form part of the total gross remuneration within the meaning of the order (arrêté) of 31 January 2023. By contrast, IJSS paid directly to the employee by the CPAM (without subrogation) are excluded from the MNS shown on the payslip, since they do not pass through the employer.

Must health insurance be maintained throughout the entire period of sick leave?

Yes, supplementary social protection (health insurance and death-and-disability cover) must be maintained throughout the entire period of suspension of the employment contract for illness, in accordance with the BOSS provisions. This maintenance covers both the employer’s share and the employee’s share of the contributions. Interrupting the scheme during the leave could jeopardise the collective and mandatory character of the arrangement, leading to a URSSAF reassessment covering all social exemptions on employer contributions.