1. Reform of Management packages
- Gains from the sale of shares subscribed or acquired (capped at three times the company’s performance) are subject to taxation as wages, if such gain is earned in return for the functions of an employee or executive in the issuing company or in companies of the group. Additionally, a new employee contribution is introduced, amounting to 10% of the net gain taxed as wages.
- It is prohibited to allocate BSPCE and related shares to employee savings plans (PEE, PEI, PERCO, PERECO) for BSPCE granted or exercised after October 10, 2024.
2. Implementation of a new restructuring tool “Long-Term Partial Activity scheme – Rebond” (“Activité partielle de longue durée – Rebond”)
- This new restructuring tool is designed for companies facing financial and economic difficulties requiring a reduction in their activities and social costs , without jeopardizing their sustainability. The tool allows a reduction in the employees’ working hours, while the Company receives partial state fundings (with the employer covering 15% of the cost, up to 40% of the hours not worked).
- The “APLD Rebond” can be implemented by mean of a collective agreement at the plant, company, or group level, or through a unilateral document issued by the employer based on an extended branch CBA.
3. Monetization of working time and “ RTT days” (“Réduction du temps de travail”)
The Finance Law for 2025 extends until December 31, 2026, the possibility for employees to waive RTT days in agreement with their employer, converting them into salary while benefiting from preferential social and tax treatment.
4. Compensation in the event of the cancellation of a PSE (“Plan Employment Protection Plan”)
The compensation granted to employees in the event of the cancellation of an administrative decision to validate or approve a PSE (Art. L.1235-16 of the French Labor Code) will benefit from an income tax exemption and social security contributions exemption, within the limit of two social security ceilings (i.e., €94,200 in 2025).
5. Reimbursement of public transport’s costs
The optional reimbursement of public transport costs between the employee’s home and workplace, exceeding 50% and up to 75% by employers, is extended until December 31, 2025.
6. Creation of a “regional mobility contribution” (“Versement mobilité regional”)
A regional mobility contribution will be established for metropolitan regions (excluding the Paris region and suburbs, “Île-de-France”), with the rate set or modified by the regional council’s deliberation, within a limit of 0.15% of the payroll, without prejudice to the mobility contribution (“versement mobilité”) received by each mobility authority in its territorial jurisdiction.
7. Apprenticeship funding
- Branches will have the possibility to reduce the funding level for apprenticeship contracts when training is partially conducted remotely.
- Companies employing apprentices preparing level 6 diplomas (equivalent to a “Bac+3”) and above, will have to contribute to the funding of these apprenticeship contracts (amount to be defined by decree).
- The scope of the apprenticeship tax (“taxe d’apprentissage”) exemption currently granted to mutual insurance companies will be reduced. It will no longer cover all salaries paid, but only the apprentices’ salaries.
8. Non-eligible trainings for the CPF (“Compte Personnel de Formation”)
Support and advisory trainings provided to business founders or takeovers will no longer be eligible for the CPF unless they are certified (“RNCP” or “RS”).
9. Exemption for Tips
The tax and social security exemption for tips paid to employees earning a salary not exceeding 1.6 times the minimum wage (SMIC) is extended until December 31, 2025. Only employees in customer-facing sectors (HCR, hairdressing, taxis, theaters, etc.) are affected.
10. Abolition of the “Employment Francs” mechanism
This mechanism, which provided a lump sum allowance for the hiring of job seekers or young people from priority urban areas (“Quartiers Prioritaires de la politique de la Ville”), expired on December 31, 2024.
