Employment Law Newsletter February 2026

Regulatory section

The 2026 finance bill has been definitively adopted by the National Assembly
After four months of parliamentary debates, three appeals to Article 49.3, and six motions of censure, the 2026 budget was definitively adopted on February 2, 2026. It must still be validated by the Constitutional Council before being promulgated.
The main measures affecting businesses are as follows:

Exemption and reimbursement measures – Public transportation costs and tips

Employers who cover up to 75% of their employees’ public transportation costs (i.e., above the mandatory 50% coverage) will continue to be exempt from social security contributions and income tax on this coverage for the year 2026.
The measure applies to public transport season tickets and public bicycle rental services.
In force since 2022, the exemption from tax and social security contributions on tips paid will remain applicable on January 1, 2026. It applies to tips that are not taxed to customers and paid to employees in contact with customers whose monthly remuneration is less than 1.6 times the minimum wage (i.e., €2,916.85 gross in 2026).