Severance Pay Calculator
Estimate your legal and contractual severance pay based on seniority, salary and bonuses under French labor law.
How is severance pay calculated in France?
French labor law guarantees a minimum severance pay for employees with at least 8 months of seniority who are dismissed (except for gross misconduct). The legal formula uses a fraction of the reference salary per year of service, and many collective agreements offer more generous terms.
Legal Severance
Minimum guaranteed by the French Labor Code: 1/4 month per year for the first 10 years, then 1/3 month per year beyond.
Contractual Severance
Many collective agreements provide higher severance amounts. The employer must apply whichever is most favorable to the employee.
Tax Exemption
Severance pay is exempt from income tax up to the higher of the legal amount, twice the gross annual salary, or 50% of the total indemnity.
Reference salary calculation
The reference salary is the higher of: the average of the last 12 months of gross salary, or the average of the last 3 months (including a prorated share of annual bonuses). This ensures the most favorable basis for the employee.
Legal vs contractual: which applies?
The employer must compare the legal severance and the contractual severance from the applicable collective agreement, then pay whichever is higher. They cannot be combined: only the most advantageous one applies.
Frequently asked questions
Who is entitled to severance pay?▼
Is severance pay taxable?▼
How does seniority affect the amount?▼
What about bonuses and variable pay?▼
Calculate your severance pay now
Enter your seniority and salary to instantly estimate your legal and contractual severance with Patrimoine360.
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