Overview
- The government published guidance stating that from January 1, 2026 until the 2026 finance law is enacted, voluntary tips are excluded from withholding tax.
- The measure applies to employees whose monthly pay does not exceed 1.6 SMIC and covers tips given directly or through the employer, whether in cash or by card.
- The exemption from social-security contributions on tips was secured in the 2026 social security financing law definitively adopted on December 16.
- A National Assembly amendment voted in October to prolong the regime until 2028 cannot take effect without an adopted state budget.
- Restaurant and café representatives had opposed taxing tips, citing the policy’s role in pay and recruitment in a sector facing labor shortages.