France Social Security Ceiling 2026 (PASS): 48,060 € and What It Changes

France's annual social security ceiling — the Plafond Annuel de la Sécurité Sociale, or PASS — is one of those quiet reference figures that few business owners track closely, yet it drives a remarkably large number of payroll, pension, and tax calculations. Every January, it is revalued by decree, and that small shift cascades through your payroll software, your retirement savings deductions, your pension contribution bands, and several employment-related thresholds.

For 2026, the PASS increases by 2%, reaching 48,060 € per year. Whether you are a foreign executive on French payroll, an international founder setting up a French company, or an HR manager handling a French subsidiary, this figure matters more than it looks.

Quick answer. The PASS 2026 is 48,060 € annually and 4,005 € per month (known as the PMSS, plafond mensuel de la Sécurité sociale). This is a +2% increase from 47,100 € / 3,925 € in 2025. The ceiling was fixed by ministerial order dated 22 December 2025, effective for all contributions from 1 January 2026.

The PASS is not a contribution rate or a tax — it is a reference ceiling used across French social and fiscal law to define contribution bases, deduction limits, and exemption thresholds. Think of it as the anchor value from which dozens of other figures are calculated.

Key uses include:

1. Defining the capped and uncapped bases for basic old-age pension contributions
2. Setting the Agirc-Arrco supplementary pension contribution bands (Band 1 and Band 2)
3. Calculating the annual deduction ceiling for individual retirement savings plans (PER)
4. Sizing the deductible contribution limit for self-employed pension contracts (Madelin / PER TNS)
5. Setting social exemption thresholds for termination payments and redundancy indemnities
6. Providing the reference for certain employee share scheme calculations

Agirc-Arrco is France's mandatory supplementary pension scheme for all private-sector employees. It uses the PASS to define two contribution bands:

Band 1 (Tranche 1): Applies to salary from 0 to 1 PASS, i.e., up to 48,060 € per year (4,005 € per month) in 2026. The effective contribution rate is 7.87% split as 3.15% from the employee and 4.72% from the employer.

Band 2 (Tranche 2): Applies to salary between 1 PASS and 8 PASS, i.e., between 48,060 € and 384,480 € per year. The effective rate is 21.59%, split as 8.64% from the employee and 12.95% from the employer.

Practical note for HR managers. The 2% increase in the PASS effectively shifts the Band 1 / Band 2 boundary upward by 960 € annually. For employees earning between 47,100 € and 48,060 €, a larger portion of their salary now falls into Band 1 (lower rate) rather than Band 2. The impact on employer cost is minimal but worth confirming in payroll simulations.

The PER (Plan d'Épargne Retraite) is France's main tax-advantaged retirement savings vehicle. Contributions are deductible from taxable income, with a ceiling that is directly tied to the PASS.

For employees#

The deduction ceiling for income received in 2026 (declared in 2027) is:

• Maximum: 10% × gross employment income, capped at 10% × (8 × PASS 2026) = 38,448 €
• Minimum floor: 10% × PASS 2026 = 4,806 €

For the 2026 tax return covering 2025 income, the ceiling uses PASS 2025 (47,100 €), giving a maximum of 37,680 € and a floor of 4,710 €.

For self-employed professionals (TNS)#

The ceiling for deductible voluntary pension contributions (via a Madelin contract or PER TNS) is more generous and structured in two cumulative components:

• 10% of taxable business income, capped at 8 PASS
• Plus 15% of the portion of business income between 1 PASS and 8 PASS

Worked example. A self-employed consultant reports 2026 net business income of 120,000 €:

• Component 1: 10% × 120,000 € = 12,000 €
• Component 2: 15% × (120,000 € − 48,060 €) = 15% × 71,940 € = 10,791 €
• Theoretical ceiling: 22,791 €

This is the gross ceiling before netting out mandatory social contributions already deducted. The actual deductible amount will be lower and must be calculated on a case-by-case basis.

For self-employed workers (TNS: artisans, traders, professionals), the PASS feeds several contribution calculation formulas:

• Basic old-age pension contributions are capped at 1 PASS (48,060 €); above this threshold, a lower uncapped rate applies
• Invalidity and death cover contributions are generally calculated on an income base capped at 1 PASS
• Some supplementary pension contributions use fractions or multiples of the PASS

A significant structural reform also comes into effect in 2026: self-employed workers now have a single contribution base equal to gross income reduced by a flat 26% allowance, replacing the previous system. This reform applies from April 2026, at the time of regularisation of 2025 contributions. The interaction between this new base and the PASS-linked ceilings is complex and the net effect varies by income level.

Social and tax exemption thresholds for termination payments — redundancy, mutual agreement terminations (rupture conventionnelle), and employer-initiated retirement — are expressed as multiples of the PASS. With the PASS rising to 48,060 € in 2026, these thresholds increase automatically.

A frequently missed point. When a negotiated termination straddles late 2025 and early 2026, the applicable PASS ceiling is that of the year of payment, not the year of signing the agreement. If an indemnity was calculated using PASS 2025 figures but is paid in 2026, the 2026 threshold applies. This can work in the employee's favour but must be tracked carefully.

Certain French employee share mechanisms, including BSPCE (founder warrants) and AGA (free shares), reference the PASS in their tax and social calculation rules. The tax treatment of BSPCE was modified for warrants granted from 1 January 2026 onward. If you are a founder or executive involved in share plan design, consult the applicable BOFiP guidance and a qualified adviser before drawing conclusions, as the detailed thresholds depend on the specific scheme terms and date of grant.

The PASS revaluation to 48,060 € is a mechanical but consequential update. The most material impacts for internationally mobile executives, foreign founders, and French business owners are: the Agirc-Arrco Band 1/Band 2 boundary shift, the PER deduction ceiling increase, and for self-employed professionals, the interaction with the 2026 contribution base reform. For HR teams, the priority is confirming that payroll systems correctly apply the monthly ceiling of 4,005 € from January 2026.

Updated 2026-05-31. This article is for information and does not replace tailored advice. For your situation, contact a chartered accountant.