How to calculate the specific compensation for conventional breakage?

Verified 26 June 2026 - Public Service / (Prime Minister)

The contractual break-up allows the employer and the employee to break by mutual agreement CDI: titleContent. On this occasion, the employee receives severance pay. Its amount varies according to the salary and seniority of the employee in the company. In some cases, the amount of the allowance may be subject to tax or social security contributions. We're taking a look at the regulations.

No, an employee may receive the severance pay regardless of his seniority in the company.

The amount of the compensation for breach of contract may not be less than statutory severance pay.

This minimum amount may be negotiated between employer and employee. It is set out in the termination agreement.

The amount of compensation may be estimated using the simulator for calculating the conventional severance pay :

Calculate the amount of the conventional termination indemnity

FYI  

Of treaty provisions, the employment contract or a custom may provide for a more advantageous calculation formula for the employee. In this case, the employee receives the highest compensation.

The income tax rules differ depending on whether the employee can benefit from a retirement pension from a legally compulsory scheme or not.

This condition is examined on the day of the termination of the employment contract.

Répondez aux questions successives et les réponses s’afficheront automatiquement

The employee may receive a retirement pension

The indemnity for conventional rupture is subject to theincome tax from 1er euro.

The employee cannot receive a retirement pension

The conventional termination indemnity is in part exempt d'income tax.

The amount corresponding to the minimum compensation fixed by law, collective agreement, professional or interprofessional agreement is fully exempt.

If the amount is higher, the exemption is limited to the highest of any of the following amounts:

  • 2 times the amount of the gross annual remuneration received by the employee during the year preceding the termination of the employment contract
  • Half of the amount of compensation.

Example :

An employee receives a termination indemnity of €120,000, of which €70,000 is equal to the compensation provided for in its collective agreement. Its gross remuneration of the calendar year before the termination of the contract is €40,000.

The severance pay is exempt up to the amount provided for in the collective agreement, either €70,000.

This amount is greater than 50% of the compensation received (€120,000/ 2 = €60,000), but less than twice the annual gross remuneration, equal to 80 000 (€40,000 x 2).

The compensation is therefore exempt up to the sum of €80,000.

The surplus of €40 000 (€120 000 - €80,000) is taxable.

Warning  

The exemption is limited to a maximum of €288,360.

The conventional termination indemnity may be exempt from social security contributions, of CSG: titleContent and CRDS: titleContent under certain conditions.

Social contributions

The conventional termination indemnity is in part exempt from social security contributions.

The amount corresponding to the minimum compensation fixed by law, collective agreement, professional or interprofessional agreement is fully exempt.

If the amount is higher, the exemption shall be limited to one of the following amounts, up to a maximum of €96,120 :

  • 2 times the amount of the gross annual remuneration received by the employee during the year preceding the termination of the employment contract
  • Half of the amount of compensation.

Example :

If an employee receives a severance pay in the amount of €40,000 exempt from income tax, the allowance is also exempt social security contributions.

On the other hand, if he receives a compensation of €100,000 exempt from income tax, the allowance is then exempt from social security contributions up to €96,120.

The portion of the compensation that exceeds that amount, or €3,880 (€100,000 - €96,120), is subject to social security contributions.

Warning  

If the conventional termination indemnity paid is greater than €480,600, it shall be subject to contributions in full. No exemption is applicable.

CSG and CRDS

The conventional termination indemnity is exempt from CSG: titleContent and CRDS: titleContent according to the smallest of the following 2 limits:

  • Amount of the indemnity for breach of contract provided for by law, collective agreement, professional or interprofessional agreement
  • Amount of the allowance exempt from social security contributions, i.e. maximum €96,120.

Warning  

If the severance pay paid is more than €480,600, it shall be submitted to CSG and CRDS in full. No exemption is applicable.

Yes. The severance pay is subject to an employer contribution of 40% on the share of the compensation exempt social security contributions.

This contribution is paid by the employer, in favor of French national old age insurance fund.

Calculate the amount of the conventional termination indemnity

Who can help me?

Find who can answer your questions in your region

  • Administrative information by telephone - Allô Service Public

    • accès

      For more information on this subject, you can contact Allô Service Public.

      Please note: the service does not have access to users' personal files and therefore cannot provide information on their progress.

      He does not respond questions concerning unemployment compensation and the approach to the France Labor (formerly Job center), public servants or contract workers of the fCivil Service, the amount or payment of contributions social, wage or employer.

    • horaires
      • Lundi : de 08h30 à 17h30
      • Mardi : de 08h30 à 12h15Fermeture exceptionnelle le mardi 14 juillet
      • Mercredi : de 08h30 à 12h15
      • Jeudi : de 08h30 à 17h30
      • Vendredi : de 13h00 à 16h15

    • Request a call

      coût Service Free
    • service

      The informants who answer you belong to the ministry responsible for labor.