https://parole-de-rh.fr/en/tags/severance-pay/Recent content in Severance Pay on Parole de RHHugoen-USWed, 28 Oct 2026 08:00:00 +0100https://parole-de-rh.fr/en/blog/severance-pay-france-calculation/Wed, 28 Oct 2026 08:00:00 +0100https://parole-de-rh.fr/en/blog/severance-pay-france-calculation/<blockquote> <p><strong>In short:</strong></p> <ol> <li><strong>Severance pay</strong> in France is due to an employee on a permanent contract dismissed for personal or economic reasons or for unfitness, if they have at least 8 months of uninterrupted service. It is not due in case of serious or gross misconduct.</li> <li>The statutory minimum is 1/4 of a month&rsquo;s salary per year of service up to 10 years, then 1/3 of a month per year beyond.</li> <li>The reference salary is the more favourable gross average of the last 12 months or the last 3 months before the dismissal.</li> <li>The part corresponding to statutory or collective-agreement severance pay is exempt from income tax. A collective agreement or the contract may provide a higher amount, which then applies.</li> </ol> </blockquote> <p><strong>Severance pay</strong> (indemnité de licenciement) compensates an employee on a permanent contract (CDI) for the loss of their job. Its minimum amount is set by the French Labour Code and is calculated from two elements: length of service and the reference salary. The rules below come from the Service-Public guide on severance pay, checked on 5 June 2026, and its guide on calculating length of service, checked on 24 July 2026.</p>