Unemployment insurance tax for companies in France is a policy which has been implemented since 1st October 2022. This prolongation, ended last 31st  October, was decreed at the end of July, establishing for three months more a monitoring of longer and fixed-term employment contracts to entities, with 11 employees or plus, which operate in the country.  

French government is promoting since last years this type of contract company-employee to avoid short-term agreement. The measure applies measuring kind of contribution with the bonus-malus mechanism. Therefore, with a minimum of 3% and maximum of 5,05%, may be decreased (bonus) or increased (malus) based on two criteria: 

  • Number of employment contract terminations or number of former employees registered in unemployment office (France Travail)  
  • Average annual number of employees in the company 

The comparison with the average rate of the company’s sector of activity on these two criteria will determine contribution’s value. If a reduction on the unemployment insurance contribution rate is applicable for the company concerned, it will have to be under the average of its sector of activity; whereas an increase (malus) must be applied on the contribution rates in the case it is above the average of its sector of activity. 

However, France’s past elections in June and recent department’s assignment leave much uncertainty about next possible extension of contribution rates. Especially because once November starts it won’t apply anymore.  

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All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.