Retirement contributions increase expected for January 2016.

French Retirement contribution

On the 30th of October 2015, the social partners agreed on the retirement system update.

This agreement includes an increase of the AGFF contribution for the executive officers.

This contribution is of 2,00% of the gross salary up to 1 social security sealing. And of 2,20% of the gross salary from 1 to 4 social security sealing. There is no contribution on the gross salary exceeding 4 social security sealing.

It is expected that on the 1st of January 2016 the gross salary from 4 to 8 social security sealing will also be subject to the AGFF contribution at a rate of 2,20%.

This agreement also includes the merge of the retirement system (ARRCO and AGIRC) as of January 2019.

This agreement is yet to be signed.


RF Paye :

The split of the AGFF contribution is: 40% employee / 60% employer.
The annual social security sealing for 2015 is of 38 040€ (3 170€ per month)

Find out more on the social contributions in our database accessible on our site for registered members.

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The judge cannot be too generous.

Court judgement

In this specific case, and employee has had successive short term employment contracts.

When the final contract ended, the employee asked the judge to have the contracts reclassified as one undefinite term contract.
The judge agreed. He then condemn the company to the pay the employee:

  • 2 indemnities for dismissal without just cause.
  • 1 notice period indemnity.
The cassation court disagreed with the judge.
The employee could only have claimed:
  • One indemnity for reclassification. Which cannot be inferior to one-month salary.
  • One indemnity for dismissal without cause.

The judge of the court of appeal has been too generous and the judge of the cassation court has cancelled the judgment.

Without proper cause successive short term employment contracts can be reclassified as one indefinite term contract.
In case this the company must pay the termination indemnity as if the short term contract has been an indefinite one. And the employee is untitled to an indemnity for dismissal without just cause as the process for termination of an indefinite term contract has not been completed.

RF Paye :

Personal account for prevention of arduousness.


Since January 2014, every employee has a personal account for prevention of arduousness.

When an employee work under harsh conditions, he acquires point on his personal account for prevention of arduousness.

Those points can be used for:

  • Professional training.
  • Reduction of working time.
  • Early retirement.

This personal account for prevention of arduousness bring the following obligation to the employer:

  • The employer must do a yearly evaluation to the exposure to harsh conditions.
  • The employer must also establish a written register of the collective data related to the exposure of harsh conditions.
  • The employer must have a process to diminish exposure to harsh conditions.
  • Finally, the employer must declare the harsh conditions to which each employee have been exposed.

Public services news :

The number of interns per company is now limited.


On the 10th of July 2014 a law regulating internship in France has been voted.

Today the application decree has been published.

As of now the number of interns working at the same time in one company is limited to:

  • 3 if the company has less than 20 employees.
  • 15% of the workforce the company has at least 20 employees.

Also, the decree indicates that one tutor cannot supervise more than 3 interns at the same time.

An intern is a student with an internship agreement between himself, his school and the company. The duration of the internship cannot exceed 6 months per academic year.
An employee of the company must be designated as a tutor for the intern.
An intern can receive a gratification. The part of this gratification which exceeding 3.6€ per hour (as of the 1st of September 2015) is subject to social contribution.

No more « sommes isolées » as of the 1st of January 2016.

Termination payroll

The “sommes isolées” are exceptional gross amounts paid to the employee and due to the termination of his employment contract.

The retirement contributions paid on these gross amounts were distinct from the normal retirement contributions.

As of the 1st of January this will no longer be the case.

Exemple of “sommes isolées” :
Indemnity for unpaid vacation | indemnity for unpaid RTT | Termination indemnity subject to social contributions | Definite term contract indemnity | Indemnity for non-concurrence clause …

Reduction by half of the termination indemnity exempted from social contributions

Part of the termination indemnity is exempted from social contributions and CSG/CRDS contributions. However, when a termination indemnity exceeds 10 times the annual social security sealing it is fully subject to social contributions.

This may change in 2016 as the parliament modified the 2016 finance law to have this exemption limit reduced to 5 time the annual social security sealing.

Reminder :
2015 annual social security sealing: 38 040 €
Expected 2016 annual security sealing : 38 616 € (to be confirmed)


Employees can renounce to their days for splitting vacation.

On the 6th of October, a court judgment confirmed that an employee can renounce to the additional vacation days he acquired by splitting the use of his vacation.

Additional vacation days are acquired when an employee takes more than 3 days of vacation outside of the vacation period from 1st of May to 31st of October.

In this case, the employer allowed the employees to use vacation days for personal convenience outside of the legal vacation period only if the employees renounced in writing to the supplementary vacation days.

This policy has been approved by the court.