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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.

The amounts taken into account and not taken into account in determining the allowance for your paid leave

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

Severance pay

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:

Methods for calculating the paid vacation allowance

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.

The amounts taken into account and not taken into account in determining the allowance for your paid leave

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

Severance pay

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.

The amounts taken into account and not taken into account in determining the allowance for your paid leave

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

Severance pay

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.