Allowance for paid leave
Verified 26 January 2022 - Legal and Administrative Information Directorate (Prime Minister)
Where the employee has not been entitled to the full amount of leave with pay to which he was entitled at the termination of the employment contract, he shall be compensated by leave with pay. This compensation is due to the fact that the reason for the breach of the contract is the employer's initiative (for example, termination) or that of the employee (for example, resignation).
Any employee who has not been entitled to the full amount of leave with pay on the date of termination of his contract shall be entitled to the compensatory allowance for leave with pay.
This allowance is due to the fact that the reason for the breach of the contract is the employer's or the employee's initiative. It shall also be paid if the break occurs during the test period.
This allowance is also due to rights holders the employee whose death occurs before he or she has taken his or her vacation leave with pay.
Please note
some companies are obliged to join a paid holiday fund (companies of the TPP sectors, shows...). In this case, the employer shall provide the employee with a certificate of entitlement to leave with pay at the time of breach of the contract.
The vacation compensation is calculated using the same rules as the vacation compensation.
Indefinite Contract (CDI)
Not all gross compensation items are included in the calculation of vacation pay.
Sum | Taking into account |
|---|---|
Salary basic | Yes |
Salary increase (overtime, night work, etc.) | Yes |
Salary reconstituted for periods assimilated to actual work (maternity leave, paternity leave and child care leave or work stoppage for work accident or occupational disease for example) | Yes |
Paid leave allowance of the previous year | Yes |
Seniority Award (if not paid for the year, working and leave periods combined) | Yes |
Monthly attendance bonus | Yes |
Yes | |
Trade Commissions | Yes |
Expatriation grant | Yes |
Benefits in kind | Yes |
Year-end bonus | No |
Interest premium | No |
Balance sheet premium | No |
Participation Award | No |
Professional | No |
13e month (if not paid for the year, working and leave periods combined) | Yes |
Partial Activity | Yes |
Financial counterparty under the non-competition obligation | Yes |
Compensation termination (so-called precarity premium) fixed-term | Yes |
Termination of acting contract | Yes |
The allowance is calculated by comparing 2 calculation methods:
- According to 1re method, the allowance is equal to 1/10e of your total gross remuneration received during reference period.
- According to 2nde method (salary maintenance), the vacation pay is equal to your pay you would have received if you had continued to work.
This is the best value you get.
The employer may consider:
- Either the actual schedule of the month, the fairest method and recognised by the jurisprudence
- Average number of business days (or worked)
- Or the actual number of working days
Example :
You received a salary of €21,840 gross during the reference period taken into account for the calculation of allowances (€1,820 per month).
Taking into account 2 weeks of paid leave, the calculations are as follows:
Salary Maintenance Method | Method 10e |
|---|---|
Taking into account the actual time of the month (7 hours per day) in a month that has 21 working days, the actual number of hours worked in the month is fixed at 147 hours (21 x 7) and the number of hours not worked due to the paid leave at 70 hours (10 x 7). The calculation is as follows: 1820x (7x10) / (7x21) = €866.66. | The calculation of 1/10e of the gross remuneration shall be as follows: (21 840/10) = €2,184 for a period of 30 working days (or 25 working days). For a fraction of 2 weeks of leave, the calculation is as follows: - in working days (12 days): (21 840/10) x (12/30) = €873.60 - in working days (10 days): (21 840/10) x (10/25) = €873.60 |
You receive the most favourable amount, either €873.60 for these 2 weeks of paid vacation.
Warning
bonuses paid on the basis of the result shall be taken into account in the basis of the calculation of the vacation pay only if they are partly related to the employee's activity.
The compensatory allowance is only due for the portion of leave that the employee did not receive.
The calculation must take into account the period of notice even if the employer decides to exempt the employee.
Fixed-Term Contract (DDC)
Not all gross compensation items are included in the calculation of vacation pay.
Sum | Taking into account |
|---|---|
Salary basic | Yes |
Salary increase (overtime, night work, etc.) | Yes |
Salary reconstituted for periods assimilated to actual work (maternity leave, paternity leave and child care leave or work stoppage for work accident or occupational disease for example) | Yes |
Paid leave allowance of the previous year | Yes |
Seniority Award (if not paid for the year, working and leave periods combined) | Yes |
Monthly attendance bonus | Yes |
Yes | |
Trade Commissions | Yes |
Expatriation grant | Yes |
Benefits in kind | Yes |
Year-end bonus | No |
Interest premium | No |
Balance sheet premium | No |
Participation Award | No |
Professional | No |
13e month (if not paid for the year, working and leave periods combined) | Yes |
Partial Activity | Yes |
Financial counterparty under the non-competition obligation | Yes |
Compensation termination (so-called precarity premium) fixed-term | Yes |
Termination of acting contract | Yes |
The compensatory allowance is only due for the portion of leave that the employee did not receive. It shall be paid at the end of the contract unless the fixed-term contract is continued by an open-ended contract. The employee receives at least 10% of the total gross remuneration received.
Please note
the termination (so-called precarious pay) shall be taken into account in the basis for calculating the compensatory holiday allowance.
Interim contract
Not all gross compensation items are included in the calculation of vacation pay.
Sum | Taking into account |
|---|---|
Salary basic | Yes |
Salary increase (overtime, night work, etc.) | Yes |
Salary reconstituted for periods assimilated to actual work (maternity leave, paternity leave and child care leave or work stoppage for work accident or occupational disease for example) | Yes |
Paid leave allowance of the previous year | Yes |
Seniority Award (if not paid for the year, working and leave periods combined) | Yes |
Monthly attendance bonus | Yes |
Yes | |
Trade Commissions | Yes |
Expatriation grant | Yes |
Benefits in kind | Yes |
Year-end bonus | No |
Interest premium | No |
Balance sheet premium | No |
Participation Award | No |
Professional | No |
13e month (if not paid for the year, working and leave periods combined) | Yes |
Partial Activity | Yes |
Financial counterparty under the non-competition obligation | Yes |
Compensation termination (so-called precarity premium) fixed-term | Yes |
Termination of acting contract | Yes |
The employee shall be entitled to a compensatory allowance for paid leave from the first hour worked for each mission carried out. It is paid at the end of each mission.
He collects at a minimum 10% the total gross remuneration received (the end-of-service allowance is also taken into account for the calculation).
The compensatory allowance for paid leave is subject to income tax and social contributions under the same conditions as the salary.
It accessible within the same limits as salary.
- Labour Code: Article L3141-28
- Labour Code: Article D3141-9Paid leave funds
- Labour Code: Article D3141-34BTP Paid Leave Fund