France 2026 Employment Termination Legal Allowance Calculator
Calculate legal termination pay: 1/4 of a month/year (10 years) + 1/3 of a month/year (over). Reference salary, maximum tax rate, and details.
Taxable Data
Calculated Compensation
Anzianità totale: 5 Years
| Belt | Years | Formula | Amount |
|---|---|---|---|
| Tranche 1 (1 a 10 ans) | 5.00 | 1/4 mois / an | 4 375,00 EUR |
| Total | 4 375,00 EUR | ||
Come utilizzare This calculator
Insert your gross monthly salary
Indicate your gross monthly salary. It is the base reference salary. You can also enter the average of the last 12 months and the average of the last 3 months if different.
Indicate your seniority
Indicates the number of complete years and months of service with the company. Minimum age for entitlement to the allowance is 8 months (from September 2017).
Analyze your legal compensation
The simulator calculates the legal compensation: 1/4 of a month per year for the first 10 years, 1/3 of a month per year thereafter. Also indicates maximum tax exemption.
Suggerimenti
- Age of 10 years and 6 months entitles you to: (10 x 1/4) + (0.5 x 1/3) = 2.5 + 0.167 = 2.667 months of pay.
- Contract collective for staff (AGIRC) can foresee higher coefficients - check your collective contract before relying solely on the minimum legal.
- In case of economic dismissal with PSE (Plan de Sauvegarde de l'Emploi, social plan), additional severance pay may be added.
- Age is counted until the last day of notice, even if you are exempt from doing so.
Domande frequenti
Is the legal severance pay always applicable?
The legal severance pay is the minimum guaranteed by law (art. L.1234-9 of the Code du Travail, French labour code). Your collective agreement may provide for a higher amount - the most favourable one always applies. In case of serious or gross misconduct, the severance pay is not due.
What is the reference salary?
Salary reference is the maximum of: (A) the average of the last 12 months and (B) the average of the last 3 months. The latter includes annual bonuses on a pro-rata basis - if you received an exceptional bonus over 3 months, the 12-month average will often be more favorable.
Is the severance pay taxable?
Legal severance pay is exempt from income tax up to the higher of: the legal or contractual amount, or twice the annual gross salary. The overall cap is 6 x PASS (i.e. EUR 278,208 in 2026).
Is the severance pay subject to social contributions?
No, up to the IRPEF exemption cap. The portion above the cap is subject to CSG/CRDS (9.70%) and potentially to social contributions if it exceeds 2 x the annual PASS.