In 2026, the general reduction in employer contributions will be reconfigured as follows single degressive general reduction (RGDU). Behind this regulatory change lies a technical parameter with major implications for your exemptions: the SMIC parameter. Prorata, flat-rate days, overtime, absences... these are just some of the situations that affect the calculation - and therefore the amount of your employer's tax relief.
From RGCP to RGDU: what the reform changes
RGDU applies to remuneration below 3 SMIC - above this threshold, the reduction is zero. As under the old system, the amount of the reduction is obtained by multiplying the gross annual salary contributions by a coefficient C.
The notable novelty lies in the new coefficient formula, which is explicitly based on a SMIC parameter in the numerator and introduces a power coefficient P = 1.75 :
This calculation is based on three parameters:
- T_min = 0.0200 - guaranteed minimum exemption of 2 %
- T_delta = 0.3781 (FNAL 0.10 %) or 0,3821 (FNAL 0.50 %)
Maximum coefficient value : T_min + T_delta = 0,3981 or 0,4021 according to applicable FNAL
The «reference» SMIC parameter is not a fixed value. adapts to the situation of each employee and to payroll events occurring during the year.
Reference values for the SMIC parameter in the RGDU
The calculation is based on a SMIC annual = 1,820 × SMIC hourly rate. As of January 1, 2026, the hourly minimum wage is set at 12,02 € (excluding Mayotte), giving an annual SMIC of 21 876,40 €.
In monthly terms, the reference SMIC corresponds to 1/12 of this annual SMIC, i.e. 1 823,03 € or, to simplify: 151.67 h × €12.02 = €12.02 1 823,07 €.
Maximum coefficient value : T_min + T_delta = 0,3981 or 0,4021 according to applicable FNAL
What SMIC rate should I use?
The applicable rate is for the period of paid employment. In the event of a revaluation of the SMIC during the year, the annual value used corresponds to the sum of values calculated before and after evolution, We have also developed a period-based approach.
Case of employees paid below the «standard» rate»
Some employees (apprentices, professionalization contracts, young people under 18 without 6 months« experience in the branch) are paid at a rate lower than the »normal" SMIC. However, is the SMIC at its full value which is used to calculate the RGDU coefficient.
SMIC and RGDU parameters: when and how to prorate?
The SMIC parameter is the subject of numerous adjustments according to contractual situations and attendance events. Here are the rules to master.
Part-time employees: the ratio of contractual to statutory working hours
For a part-time employee, the SMIC is prorated according to the ratio between :
- The contractual working hours (excluding overtime and complementary hours),
- And the corresponding legal period over the period.
In the event of a change in working hours during the year (from full-time to part-time, amendment, etc.), the annual SMIC is calculated as follows dividing the year into homogeneous periods.
If the contractual duration is less than 35 h, For full-time employees, the SMIC is prorated by the ratio of collective working hours to 35. For part-time employees, the mechanism produces a double prorata (contractual duration / collective duration) × (collective duration / 35), which is simply contractual duration / 35.
Package days: 218 days as a full-time reference
- Package = 218 days → SMIC for full-time work (1,820 h/year or 151.67 h/month)
- Package less than 218 days → SMIC corrected by the ratio days worked / 218
- Since the January 1, 2026, the SMIC can also be increased for days worked in excess of 218, as part of the mechanism for buying back days of rest (treated as overtime - conversion to be confirmed by the authorities)
Annual hourly rates: the 1,607-hour threshold
- Package less than 1,607 h → annual SMIC prorated by the ratio package hours / 1,607
- Package more than 1,607 h → no prorata, but application of the rule of SMIC increase by the number of hours of paid overtime
Overtime, complementary hours and SMIC parameters
The number of hours used for the SMIC parameter is increased by the number of hours of paid overtime or complementary work, without taking into account salary increases. This increase is applied after any prorata due to the employee's situation.
There are two categories of overtime:
- Structural overtime overtime: included in the collective working week (e.g. 37 h/week with 2 h structural) or in a package already including overtime → included in the basic SMIC wage
- Occasional overtime : paid in excess of the collective timetable or fixed rate → added to the SMIC parameter
Absences and incomplete years: the direct impact on RGDU
Absence management isn't just a social issue: it's also one of the most important directly conditions the SMIC parameter and, consequently, the amount of your employer's RGDU exemptions.
Suspension with full pay
When the contract is suspended and remuneration is maintained in full, the «usual» SMIC is used - possibly prorated for the duration of the work (part-time, etc.), as if the employee had been present.
Suspension without retention or with partial retention
The SMIC for the month of absence is corrected by the ratio between the gross salary actually paid and that which would have been paid for a full month's attendance, excluding remuneration not affected by the absence (ENA).
Entry or exit during the year
The SMIC value used for the month of entry or exit is corrected by the ratio between the remuneration actually paid and that which would have been due for a full month - excluding ENA.
The concept of ’elements not affected by absence« (ENA) has been evolving since January 2026. Is considered as assigned any element whose amount is reduced in strict proportion to the time of absence. Elements unallocated - 13th month bonus, annual bonuses, compensatory allowances for sick leave, etc. - are to be exclude from the SMIC proratization calculation, in both numerator and denominator.
Special cases: employees not covered by the monthly wage system and road hauliers
Employees who do not work on a monthly basis or have no fixed working hours
For seasonal, temporary or casual workers, the SMIC is adjusted according to the number of hours worked. contractual working hours over the period of presence, up to a limit of 1,820 h/year or 151.67 h/month. If the duration cannot be determined, we use the product of the SMIC hourly wage multiplied by the legal or collective duration applicable.
Road haulage: specific RGDU coefficients
- Long-haul / Long-distance (43-hour equivalent): SMIC plus a coefficient 45/35. Overtime in excess of the equivalence period is added without application of the coefficient.
- Short distance (39-hour equivalent): coefficient 40/35. The same logic applies to overtime.
4 ways to manage RGDU without risk
Secure your RGDU calculations by making them traceable, consistent and auditable. Without changing your organizational choices, four levers structure a robust approach :
Mapping populations with specific rules - part-time work, atypical collective working hours, flat-rate days and hours, equivalence sectors, employees not paid monthly.
Qualify hours with precision - distinguish between structural and occasional hours, overtime and complementary hours, and check that the SMIC parameter is populated with paid hours, without extra pay.
Securing events during the year - entry/exit, increase in minimum wage, change in working hours, full-time/part-time switchover, fixed-price agreements: each event calls for a breakdown by period.
Aligning absence policy and payroll/DSN processing - salary maintenance, neutralization of absences, ENA treatment: a misalignment has a direct impact on the SMIC parameter and your tax exemptions.
Secure your RGDU 2026 with G.A.C. Group expertise
Every tenth of a point of C coefficient miscalculated translates directly into loss of earnings or risk of URSSAF adjustment. G.A.C. Group's experts can help you transform the complexity of SGR into an HR performance lever:
- Auditing your SMIC parameters and identify areas of risk and optimization in your employer contribution calculations
- Financial planning the impact of the RGDU on your 2026 payroll taxes
- Securing your compliance URSSAF before any inspection
- Train your payroll teams the new SMIC parameter rules and the ENA concept
Don't let the complexity of RGDU weigh on your bottom line. Our consultants analyze your situation and provide you with a costed projection, tailored to your structure and your challenges.
