Employer unemployment insurance contributions France 2026: rates, AGS and bonus-malus

In 2026, the French employer unemployment contribution stands at 4.00% of gross salary, capped at 4 times the monthly social security ceiling (PMSS). This rate decreased by one basis point on 1 May 2025, down from the 4.05% that had applied since 2019. The employee share was abolished entirely in October 2018: only the employer now contributes to unemployment insurance.

For many business owners, unemployment insurance charges remain opaque. Does the employee still have a deduction? Who is exposed to the bonus-malus system following its March 2026 revision? On what base is AGS calculated? This guide brings together verified figures, rates currently in force, and a concrete payroll calculation example.

Summary: employer rate 4.00% (since 1 May 2025), ceiling 4 x PMSS = 16,020 euros/month, AGS 0.25%, employee contribution 0%. Bonus-malus: 6 sectors since 1 March 2026, floor 2.95%, ceiling 5.00%.

Since 1 May 2025, the general employer unemployment contribution rate is 4.00%. The one-basis-point reduction from 4.05% took effect by ministerial order implementing the unemployment insurance agreement of 15 November 2024.

For employees in the standard private sector scheme, the rate applies to gross salary capped at 4 times the monthly social security ceiling (PMSS). The 2026 PMSS is set at 4,005 euros per month (order of 22 December 2025), giving a monthly cap of 4 x 4,005 euros = 16,020 euros/month (192,240 euros/year). No contribution is due on remuneration above this threshold.

Source: URSSAF, Unedic — rates in force as of 1 May 2025, verified 26 May 2026.

The payslip vigilance point#

In payroll software, a line labelled "assurance chomage salarie" at 0% may still appear technically. This generates no deduction. However, if a provider or software is still calculating an employee unemployment deduction on a standard payslip, that is an error: it reduces the employee's take-home pay incorrectly and requires a correction with a revised DSN filing.

Since 1 October 2018, the employee share of the unemployment contribution has been completely abolished for private sector employees under the general scheme. Only the employer contributes.

The abolition was not a straightforward gain: a 1.70-point increase in the CSG (Contribution Sociale Generalisee) was applied to employees at the same time. Nevertheless, the unemployment line disappears from the standard payslip.

Who still pays an employee unemployment contribution in 2026?

• Entertainment industry intermittents (intermittents du spectacle): employee rate of 2.40% applies under the specific annexe regime;
• Internationally mobile employees with individual voluntary membership;
• Employees based in Monaco: employee rate 2.40%.

For all standard private sector employees, the employee contribution is zero. This is worth checking when auditing payroll files taken over from another provider: a residual employee deduction on a standard payslip is a parameterisation error that needs correcting.

The AGS (Association pour la Gestion du regime de Garantie des creances des Salaries) covers the payment of salaries, notice periods, holiday pay and severance when an employer enters judicial receivership or liquidation.

It is funded solely by the employer, at a rate of 0.25% since 1 July 2024, on the same capped base as the unemployment contribution:

• Ceiling: 4 PMSS = 16,020 euros/month in 2026;
• URSSAF contribution type code (CTP): 937 "Cotisations AGS cas general";
• Temporary staffing agencies: reduced rate of 0.03% applies to temporary workers.

The AGS is collected by URSSAF on behalf of the guarantee scheme and declared via the monthly DSN.

Worked example: unemployment + AGS on a gross salary of 3,500 euros#

Consider an employee on a permanent contract (CDI) with a monthly gross salary of 3,500 euros.

Base: 3,500 euros is below the 16,020 euros ceiling, so the full gross salary is used.

Employee unemployment contribution: 0 euros.

Annualised: 148.75 euros x 12 = 1,785 euros per year in employer charges for unemployment insurance and the wage guarantee on this single employee.

The bonus-malus modulates the employer unemployment contribution rate based on the company's separation rate — the ratio between the number of contract endings resulting in registration with France Travail and the average workforce. It was introduced by the 2021 reform and renewed under the agreement of 15 November 2024.

The mechanism: a high separation rate relative to sector peers pushes the rate above 4.00% (malus); a low separation rate brings it below (bonus).

Who is affected from 1 March 2026?#

From 1 March 2026, a new modulation period started with two significant changes:

1. The wood processing, paper and printing sector exited the scheme. Only 6 sectors now remain within scope.
2. Benchmarking now takes place at sub-sector level (NAF 272 group) rather than at the broader NAF 38 sector level. A hotel is now compared to other hotels, not to the entire accommodation-and-catering sector.

The 6 sectors within scope from 1 March 2026:

1. Manufacture of food products, beverages and tobacco
2. Water supply, sewerage and waste management
3. Specialised, scientific and technical activities
4. Transport and storage
5. Accommodation and food service
6. Manufacture of rubber, plastic and other non-metallic mineral products

Workforce threshold: companies with 11 or more employees.

Bonus-malus rates in force from 1 March 2026#

Source: Unedic, URSSAF — in force from 1 March 2026.

The previous floor of 2.50% and ceiling of 8.00% that applied from 2021 to February 2026 are no longer in effect.

Practical impact#

For a food-service employer with 50 employees and a payroll of 1,500,000 euros, the gap between maximum bonus (2.95%) and maximum malus (5.00%) comes to (5.00% - 2.95%) x 1,500,000 euros = 30,750 euros per year. URSSAF notifies each affected company of its modulated rate from late February. The rate is based on separation data from the 3 preceding years — for the period from 1 March 2026, the reference period covers 2022, 2023 and 2024.

Between 1 May 2025 and late 2025, a number of payroll files still applied the old 4.05% rate because the software parameterisation had not been updated. The gap per payslip is tiny, but it compounds across every employee every month. The correction requires a revised DSN and a regularisation for the periods concerned.

Similarly, companies subject to the bonus-malus that have not updated their modulated rate after receiving the URSSAF notification are either overpaying (if the bonus was not applied) or accumulating risk of a back-charge (if the malus was not applied). In both cases, the cost of the correction outweighs the cost of an annual verification.

For standard employers, there is no sliding-scale surcharge on short CDDs by duration for general unemployment contribution purposes. The relevant mechanisms are:

For CDD d'usage (CDDU — open-ended customary fixed-term contracts), a flat fee of 10 euros per contract is due by the employer since 1 January 2020, on top of the 4.00% standard rate.

For occasional docker workers and entertainment intermittents on CDDU contracts of 3 months or less, the employer contribution rate includes an additional 0.5 percentage point since 1 January 2020.

For all other standard employers, no supplementary rate applies to short-term CDDs beyond the base 4.00%. The bonus-malus mechanism partly serves this signalling function for companies in the 6 targeted sectors.

Targeted exemptions remain valid in 2026:

• Urban free zones (ZFU) and rural revitalisation zones (ZRR): employer contribution exemptions apply under conditions. Their scope changes regularly; verify eligibility with your accountant before making location decisions based solely on this benefit.
• Apprenticeship contracts: for companies with fewer than 11 employees, the employer unemployment contribution exemption for apprentices is maintained. Above 11 employees, reduced rates apply.
• Employees aged 70 and over: partial exemption may apply under certain conditions.

These exemptions do not apply automatically. They require the correct payroll code and ongoing eligibility tracking throughout the contract.

Unemployment contributions (4.00%) and the AGS levy (0.25%) are declared and paid monthly to URSSAF via the DSN (Declaration Sociale Nominative), alongside all other employer and employee social contributions.

Payroll software calculates the amounts automatically. The payroll provider or payroll manager is responsible for ensuring:

1. Rates reflect current law — particularly the rate change of 1 May 2025 (4.00%, not 4.05%);
2. The bonus-malus modulated rate is updated after URSSAF notification each late February;
3. The 10 euros CDDU flat fee is correctly declared where applicable.

A late DSN filing incurs a penalty of approximately 60 euros per employee per month of delay in 2026 (1.5% of the monthly contribution ceiling).

Practical checklist for employers#

1. Confirm your payroll software applies 4.00% since May 2025, not 4.05%.
2. If your company operates in one of the 6 bonus-malus sectors with 11 or more employees, review your URSSAF notification from late February 2026 for your modulated rate.
3. Compare your separation rate against your sub-sector benchmark to anticipate the next modulation period.
4. Check the AGS setting (CTP 937, 0.25%) and confirm the 10 euros CDDU flat fee is declared where applicable.

For more on payroll compliance, see our guide on reading a French payslip and our article on the net social amount 2026. Our overview of mobility levies 2026 covers the versement mobilite. To outsource payroll to a specialist firm, see our French payroll service in Paris.

Updated 26 May 2026. This article is for information purposes only and does not replace personalised professional advice. Rates and exemption conditions change regularly. For your specific situation, consult a qualified expert-comptable registered with the Ordre des Experts-Comptables.