Transactional compensation: total exemption under certain conditions

Can the settlement compensation paid to the employee be totally exempt from social security contributions? The 2nd Civil Chamber of the Court of Cassation, in a judgment of January 30, 2025 (no. 22-18.333), confirms that if the compensation aims to compensate for damages, it is not subject to the contribution base, even if its amount exceeds 2 PASS. Confirmation of the exemption regime for severance pay In 2018, the Court of Cassation establishe…