Social security contributions: rates and workforce thresholds

The social security contribution is a levy paid by the employer. Its standard rate is 20%, according to economie.gouv.fr (page written on 20/03/2026). The workforce threshold depends on the amount paid: 50 employees for profit-sharing and employer matching contributions, and 250 employees for incentive bonuses.

This page reproduces the rates and thresholds as published on official websites, each with its date. It does not address the potential impact of the 2026 Social Security Financing Act on these rates: none of the websites consulted mention it, and the text of the law has not been reviewed for this page. It also does not cover the conditions for the reduced rate of 16 %, the calculation of the workforce size, or the profit-sharing bonus scheme.

Who pays the social security contribution, and on what basis?

According to economie.gouv.fr (20/03/2026), amounts paid as profit-sharing, incentive bonuses, and employer matching contributions are "in principle" subject to a specific contribution called a social security levy, "payable by you," meaning by the employer. Its "standard" rate is 20%.

The cost of this contribution must therefore be taken into account by the employer before signing an agreement or deciding on a supplementary contribution.

The published rates

The pages I read state that the 16 % rate applies "under certain conditions" without specifying them. This page also fails to provide details. The 10 % rate is mentioned on the page in the list of changes introduced by the Pacte law; the page also fails to specify its conditions.

The staffing thresholds, sum by sum

Three key formulations to remember:

• Profit-sharing: Fact sheet F2140 (verified on 01/01/2026) indicates that companies with fewer than 250 employees are exempt from the social security contribution "on amounts paid under profit-sharing schemes." economie.gouv.fr (21/09/2026) states that the social security contribution on profit-sharing has been eliminated for companies with fewer than 250 employees since January 1, 2019.
• Participation: "Companies with fewer than 50 employees are exempt from social security contributions on these amounts"; "Companies with 50 or more employees must pay a social security contribution of 20 %" (economie.gouv.fr, 22/09/2026).
• Employer contributions: economie.gouv.fr (March 20, 2026) lists, among the provisions of the PACTE law, the elimination of the employer social security contribution for all companies with fewer than 50 employees that pay profit-sharing, employee shareholding, and employer contributions. Fact sheets F2142 and F10260 state that a company with 50 or more employees that makes a supplementary contribution pays the employer social security contribution; they do not specify the rate.

The 50-employee threshold is interpreted as "fewer than 50" for the exemption, and "50 or more" for the social security contribution. A company with 49 employees and a company with 50 employees are not in the same situation regarding profit-sharing and employer matching contributions. For incentive bonuses, the threshold is between 249 and 250 employees.

A threshold of 50 employees that appears elsewhere

The 50-employee threshold applies to profit-sharing itself. According to fact sheet F2141 (July 21, 2026), it is mandatory in companies with at least 50 employees. For a company that reaches this threshold, two issues converge: the obligation to implement profit-sharing, and the social security contributions levied on the amounts paid out under this scheme.

Numerical example (fictitious profile)

Situation. A company pays out €90,000 in profit-sharing, €60,000 in incentive bonuses, and €48,000 in matching contributions to its employee savings plan (PEE) each year, for a total of €198,000. These amounts are hypothetical. The manager is wondering how the company's workforce size affects this. He is comparing three scenarios: 45, 120, and 260 employees.

Issue. The social security contribution is not calculated on the total amount paid. It is calculated sum by sum, with a different threshold for profit-sharing.

Strategy. The firm applies to each sum the threshold and rate of 20 % published on the cited pages. Reduced rates are not used, as their conditions are not detailed in the sources.

Result.

With 120 employees, the social security contribution represents 13.94% of the €198,000 paid. With 260 employees, it represents 20%. The increase from 45 to 120 employees brings profit-sharing and employer matching contributions into the scope of this tax. The increase from 120 to 260 employees brings incentive bonuses into the scope of this tax.

This profile is fictitious. The figures illustrate the mechanism as described on the cited pages and do not predict any results for your business.

What changes depending on your situation

• Your workforce size, and its position relative to the thresholds of 50 and 250 employees. The method for calculating the workforce size is not detailed in the pages you have read: it can be verified in your file.
• The nature of the sum: participation, incentive or matching contribution.
• The vehicle into which the contribution is paid: an employee shareholding fund, a Perco or a company PER are mentioned with reduced rates, the conditions of which must be verified before any decision.
• The date of the source used. The cited pages range from 01/01/2026 to 22/09/2026, and a rate published on a given date may change.
• There is an obligation specific to your company size. For companies with 11 to 49 employees, fact sheet F2141 describes, under certain conditions, an obligation to share profit: the company must have achieved a net taxable profit of at least 1% of its turnover for three consecutive fiscal years, with employer contributions to an employee savings plan as one of the options. Full conditions can be found on the fact sheet.

This page does not calculate your company's social security contributions. No results are guaranteed.