Committee rejects tax measure

On Wednesday, October 14, 2026, deputies in the Social Affairs Committee rejected a proposed change in the government’s 2027 Social Security Financing Bill (PLFSS) that would have reduced social security contribution exemptions for companies. The government had sought to include certain employee compensation elements, such as profit-sharing and participation, in the calculation of these exemptions, which would have raised companies’ contributions by around 3.7 billion euros.

Amendment removes proposal

The amendment, introduced by the Right Republic group, effectively canceled the government’s proposal. Deputies argued that increasing labor costs for companies could discourage them from offering these bonuses. Justine Gruet (Right Republic) said raising labor costs was "not understandable," stressing that exemptions were a key tool for job creation.

Critics call decision costly

Nicolas Turquois (MoDem) described the vote as "extremely serious," noting it amounted to "burning three and a half billion" during a time of financial strain. Sandrine Runel (Socialists) called the vote "disappointing," pointing out it was the "only article where we had revenue for the social security system."

Defense of exemptions

Annie Vidal (Renaissance) supported the principle of general exemptions, stating it had long been a goal to support employment through company aid. The committee’s decision does not finalize the matter, as the full text of the government’s proposal will be reviewed in the National Assembly.

Climate leave approved

The committee also approved an amendment to introduce a climate leave, offering five days of leave annually for employees in areas affected by natural disasters or extreme heatwaves. This decision comes amid a worsening economic and social situation.