On €3,500 a month after 7 years and 8 months, the legal indemnité de licenciement is €6,708, free of tax and contributions. Enter your own dates and pay, and see what the 2027 budget proposal would change.
Rates verified How we check rates
Years 1 to 10
1/4 month
per year of service
After 10 years
1/3 month
per year of service
Minimum service
8 months
to the end of notice
2027 proposal
€48,060
single tax-free cap
Counts even if you don't work the notice
Salaire brut, bonuses included
The higher of the two is used
Indemnity (gross)
€6,708
1.92 months' pay for 7 years 8 months
You keep, 2026 rules
€6,708
Tax and contribution free
If the 2027 proposal passes
€6,708
No change for you
| 2026 rules | 2027 proposal | |
|---|---|---|
| Free of income tax | €6,708 | €6,708 |
| Free of social contributions | €6,708 | €6,708 |
| Free of CSG/CRDS | €6,708 | €6,708 |
| CSG/CRDS (9.7%) | €0 | €0 |
| Employee contributions | €0 | €0 |
| Income tax (quotient system) | €0 | €0 |
Reference pay used: €3,500 a month. Legal minimum: €6,708.
No extra delay to unemployment benefit: nothing is paid above the legal minimum.
PayMetric Labs' own modelled estimate from the Code du travail (L1234-9, R1234-1 to R1234-4), art. 80 duodecies CGI and L242-1 CSS. The 2027 column follows the PLF and PLFSS 2027 as presented on 1 October 2026, not yet voted, with the 2026 PASS (€48,060). Income tax is a single filer with last year's pay as other income. Not legal advice.
Start from your reference pay: the higher of your average monthly gross over the last 12 months and over the last 3. Multiply it by a quarter for each year of service up to 10, and by a third for each year after that. A part year counts by complete months, and service runs to the end of your notice, whether you work it or not.
Your convention collective often gives more, particularly for cadres. The employer owes whichever is higher. Anything negotiated on top is the supra-légale part: it can still be tax-free, but it pays CSG and CRDS and pushes back the start of your unemployment benefit by up to 150 days (75 for an economic dismissal).
Under the 2026 rules, the indemnity is free of income tax up to the highest of the legal or conventional amount, twice last year's gross pay and half the indemnity, capped at €288,360 for the last two. It's free of social contributions up to €96,120. The 2027 budget bills would replace all of that with one ceiling of one PASS.
A quarter of a month's gross pay for each year of service up to 10 years, then a third of a month for each year after that. Part years count by complete months. On €3,500 a month after 7 years and 8 months, that's 1.92 months' pay, or €6,708.
The more favourable of your average monthly gross over the last 12 months and over the last 3 months. In the 3-month average, an annual or exceptional bonus paid in that period only counts pro rata. If you were on sick leave, the months before the leave are used instead.
Yes, 8 months of uninterrupted service, counted to the end of your notice period, even if you're excused from working it. Below that there's no legal indemnity, though your convention collective or contract may give one.
The indemnité spécifique can't be lower than the legal indemnity (or the conventional one in many sectors), and it's taxed the same way unless you can already draw a pension. Your employer also pays a 40% contribution on the contribution-free part: about €16,722 on the €41,806 example in the calculator.
CSG and CRDS are only waived up to the legal or conventional minimum. Anything negotiated above it pays 9.7%, even when it's free of income tax. On €41,806 with €20,000 above the minimum, that's €1,940.
The PLF and PLFSS 2027, presented on 1 October 2026, would make severance free of tax, contributions and CSG only up to one PASS (€48,060 at the 2026 value), for ruptures taking effect from 1 January 2027. Parliament hasn't voted yet. After 25 years on €9,000 a month, the €68,500 legal indemnity is fully tax-free today but would leave about €10,151 less under the proposal.
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