Social Security Financing Act 2026: The 5 measures affecting your business

You run a business and wonder what the new Social Security financing law will change for you? Good question. The text has just been definitively adopted and several measures will directly affect your HR management and payroll costs.

No need to panic: we explain the essentials, measure by measure, with the key dates to remember.

CSG on wealth income increases

First change, and not a minor one: CSG on wealth income rises to10.6%. This increase applies to investment income, capital gains, rental income and other capital income.

If you are a director receiving dividends or rental income, your tax bill increases accordingly. This measure forms part of the effort to finance the social protection system.

Please note: certain exceptions are provided for in the text. Check with your accountant whether you are affected.

Mutual termination agreements: they will cost more

This is probably the measure that will generate most discussion in HR departments. From1 January 2026, the employer contribution on mutual termination indemnities rises from30% to 40%.

In practical terms, if you pay a mutual termination indemnity of €10,000, you will owe €4,000 in employer contributions instead of €3,000 today. A 33% increase in cost for the employer.

This increase also applies toearly retirement indemnities. If you are planning negotiated departures, the timing of the signature becomes strategic.

What this means for you

• Mutual termination agreements signed before 31 December 2025 remain at the 30% rate
• From 1 January 2026, the new 40% rate applies
• Plan ahead for negotiations if departures are expected

Undeclared work: tougher penalties

Businesses that use undeclared work face heavier penalties. The tightening applies to allproceedings initiated from 1 June 2026.

Without going into technical detail, bear in mind that the tax authorities and URSSAF now have increased sanction powers. Vigilance over compliance with your payroll and reporting practices becomes even more important.

Sick leave: capped prescription period

From1 September 2026, the duration of sick leave prescribed by doctors will be capped:

• 1 month maximumfor a first prescription (exact duration to be set by forthcoming decree)
• 2 months maximumfor an extension

Control of prescriptions is also strengthened. Doctors will now have to mention not only the medical elements but also thereasons justifying the sick leave.

This measure aims to combat convenience absenteeism and make prescribers accountable. For employers, this could mean shorter, better justified absences.

New birth leave: up to 4 additional months

Good news for your employee parents: anadditional birth leaveis being created. It is added to existing maternity, paternity and adoption leave.

Features of the new leave

• Duration at choice: 1 or 2 months per parent
• Splittable: may be taken in 2 periods of 1 month
• Paidby Social Security
• Cumulative: both parents may take their leave simultaneously or in turn

Result: a family may benefit from up to4 additional months of parental care(2 months per parent).

Who is affected?

This measure applies to children born or adopted from1 January 2026. It also covers premature births whose expected due date was after that date.

Key takeaways

• 1 January 2026: increase in employer contribution on mutual termination agreements (40% instead of 30%) and entry into force of the new birth leave
• 1 June 2026: strengthened penalties for undeclared work
• 1 September 2026: capping of the duration of prescribed sick leave
• CSG on wealth: rise to 10.6%

These measures pursue a dual objective: financing the social protection system and better regulating certain practices. Take time to anticipate their impact on your budget and HR management. Your accountant can help you quantify these changes precisely.