Calculating the RGDU in 2026: coefficient, brackets, examples

Quick answer. To calculate the 2026 RGDU, take the maximum coefficient by headcount (0.3981 below 50 employees, 0.4021 from 50), divide annual gross pay by the reference SMIC frozen at 21,876.40 euros, apply the URSSAF degressive formula, then check the cut-off at 3 times SMIC.

The single degressive general reduction (RGDU) takes effect on 1 January 2026. It replaces the former general reduction, known as the Fillon reduction, and absorbs the health and family reduced-rate bands removed on low wages. In practice you no longer run two separate mechanisms (reduced health and family contribution rates on one side, the Fillon reduction on the other) but a single degressive relief charged against most employer contributions.

For an employer this is not theoretical: a mis-set coefficient produces a wrong relief on every payslip, under- or over-paid contributions, and a sometimes heavy year-end reconciliation. This article sets out the calculation step by step. For the principle and definition of the scheme, first see our dedicated article to understand the principle of the RGDU. Here we stay on the operational calculation.

Three elements shape the new calculation, and each is a frequent source of payroll error.

1. The maximum coefficient now depends on headcount (and therefore on the applicable FNAL rate), not just the sector.
2. The calculation relies on a frozen reference SMIC, distinct from the SMIC actually in force.
3. The cut-off point of the relief moves to 3 times SMIC, against 1.6 times SMIC previously: more employees qualify for a reduction, even a partial one.

Our reading. The move to 3 times SMIC is the most structural change for SMEs: employees paid around 2 or 2.5 times SMIC, who qualified for nothing under the former Fillon reduction, now generate relief. Checking that your software calculates the reduction on this wider population is the first reflex to have.

The RGDU covers pay subject to employer contributions for an employee within the general scheme. Before any calculation, set the right reference SMIC.

For 2026, the RGDU reference SMIC is frozen at 12.02 euros per hour, i.e. 21,876.40 euros per year (12.02 x 1,820 hours). This is the figure used in the calculation, and only this one.

The underestimated risk. The SMIC actually in force on 1 June 2026 is 12.31 euros per hour. If your set-up uses this actual SMIC instead of the frozen reference SMIC, all your coefficients are wrong. This is the most frequent error we see on the first 2026 payslips: the software defaults to the current hourly SMIC. Relief is calculated on the reference SMIC, never on the actual SMIC.

The maximum coefficient (Tmax) is the reduction obtained at the reference SMIC level. It depends on headcount, through the applicable FNAL rate.

The gap looks small (40 basis points on the maximum coefficient), but it applies to every eligible pay, across the whole headcount and over the year. For a company crossing the 50-employee threshold, this switch must be anticipated.

2026 watch points. Crossing the 50-employee threshold follows the headcount counting and smoothing rules (annual average, multi-year crossing mechanism). A company that exceeds 50 employees once does not automatically switch the following 1 January. Have your reference headcount validated before locking the coefficient.

The applicable coefficient is not the maximum for everyone. It decreases as pay moves away from the SMIC. The calculation therefore relies on a ratio:

ratio = annual gross pay subject to contributions / annual reference SMIC (21,876.40 euros)

This ratio positions the employee on the degressive curve:

• at the reference SMIC level (ratio = 1), the coefficient is at its maximum (0.3981 or 0.4021);
• at 3 times SMIC (ratio = 3), the coefficient is zero;
• between the two, the coefficient decreases degressively.

URSSAF publishes a parametered formula that decreases the coefficient from the maximum, based on the pay-to-SMIC ratio, with a degressivity exponent. The reduction amount is obtained by multiplying that coefficient by gross pay.

Rather than reproduce an algebraic formula that can be adjusted by decree, we illustrate the mechanism with pay brackets. These amounts are teaching illustrations, not figures to the euro: the exact calculation must be done with the official URSSAF simulator and formula.

In practice. Two employees in the same company, one at 1.3 times SMIC and the other at 2 times SMIC, do not generate the same right. The first captures clearly higher relief than the second. That is the degressive logic: the higher pay rises towards 3 times SMIC, the more the reduction shrinks, until it disappears.

The RGDU cut-off is set at 3 times the reference SMIC. Beyond that, no relief is due. This threshold, raised from the 1.6 times SMIC of the former scheme, clearly widens the range of employees concerned.

In practice, check two bounds on each calculation:

• at the reference SMIC level, the coefficient must reach its theoretical maximum (0.3981 or 0.4021);
• at 3 times SMIC, the coefficient must fall exactly to zero.

If either of these two checks is off, the set-up of the reference SMIC or of the maximum coefficient is probably at fault.

The reduction is charged against the relevant employer contributions: health, old-age, family allowances, FNAL, autonomy solidarity contribution, work-accident contributions within the limit of 0.49 % for 2026, supplementary pension and unemployment contributions.

The calculation is annualised. In practice, relief is calculated month by month and then reconciled progressively (or once at year end) to reflect pay variations over the year. The final amount is reported in the DSN via the dedicated payroll codes.

Set-up pitfalls checklist#

• Reference SMIC frozen at 21,876.40 euros entered, not the current actual SMIC
• Maximum coefficient consistent with headcount (0.3981 or 0.4021) and the FNAL rate
• Work-accident limit of 0.49 % correctly applied
• Cut-off set at 3 times SMIC, not 1.6 times SMIC (former set-up)
• Reduction calculated for employees between 1.6 and 3 times SMIC, now eligible
• Annualised reconciliation enabled
• Amount correctly allocated to each contribution and reported in the DSN

Recently, a 30-employee SME sent us its first 2026 payslips with a lower overall relief than expected. The diagnosis was quick: the software had kept the old set-up with a cut-off at 1.6 times SMIC. As a result, all employees paid between 1.6 and 3 times SMIC, a significant share of the headcount, generated no reduction even though they were now entitled to it. The shortfall over one month, scaled to the year, was far from negligible.

Our conviction is simple: for 2026, the first payroll of the year deserves a manual check. Two checks secure the essentials. First, verify the reference SMIC entered (the exact figure, 21,876.40 euros, not the actual SMIC). Second, verify that an employee at 2 times SMIC indeed generates non-zero relief, which proves the cut-off is set at 3 times SMIC.

Beyond set-up, the right reading is budgetary: the RGDU changes the real cost of an employee at hiring. To arbitrate a pay level, it is better to factor the expected relief into the simulation. Our firm, registered with the Ile-de-France Order of Chartered Accountants, supports this check as part of our outsourced payroll engagement. This article is informative: a decision specific to your situation requires reviewing your payslips, your headcount and the set-up in force.