France statutory dismissal compensation (indemnité de licenciement) calculator

The minimum the law provides in France for an employee on a permanent contract, with seniority in years and months, and what changes for a conventional termination.

Minimum statutory compensation

€4,062.50

1.63 months of reference salary, for 6 years and 6 months of seniority

1.63 months of salary
Seniority: 6 years and 6 months

With a reference salary of €2,500.00 and 6 years and 6 months of seniority, the statutory dismissal compensation is at least €4,062.50: 1.63 months of salary.

The formula: up to 10 years, 1/4 of a month’s salary per year; beyond that, 1/3 of a month per year; an incomplete year counts pro rata by full months. Your collective agreement may provide better: the higher compensation then applies.

I’m not an accountant or a financial advisor. This is an estimate, for information only. Check with a professional before you decide.

Your numbers

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Reference salary (gross monthly)

The more favourable of the monthly average of the last 12 months and of the last 3 months (annual bonuses pro rata). Enter the result of that calculation.

Seniority: years

The full years of seniority, counted up to the end of the notice period.

Seniority: extra months

The full months on top of the years (from 0 to 11).

Reason for the termination

Dismissalpersonal, economic or unfitnessConventional terminationlegal minimumSerious or gross misconductno statutory compensation

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The calculation
	Reference salary	€2,500.00
	Seniority	6 years and 6 months
	Up to 10 years6.50 years × 1/4 month	1.63 months
=	Months of salary	1.63 months
×	Reference salary	€2,500.00
=	Minimum statutory compensation	€4,062.50

How it works

It starts from the reference salary: the more favourable of the monthly average of the last 12 months and of the last 3 months (with annual bonuses pro rata). Seniority is counted up to the actual end of the contract, that is the end of the notice period.
For each year of seniority up to 10 years, the compensation is at least 1/4 of a month’s salary; for each year after 10 years, at least 1/3 of a month. An incomplete year counts pro rata by full months.
To be entitled to statutory dismissal compensation, you need at least 8 months of uninterrupted seniority on the date the dismissal letter is sent; it is not paid in case of serious or gross misconduct. For a conventional termination there is no seniority condition and the compensation cannot be lower than the statutory dismissal compensation.

Worked example

Reference salary of €1,500 and 12 years and 9 months of seniority: (1,500 × 1/4 × 10) + (1,500 × 1/3 × 2) + (1,500 × 1/3 × 9/12) = 3,750 + 1,000 + 375 = €5,125. With 3 years and 6 months: (1,500 × 1/4 × 3) + (1,500 × 1/4 × 6/12) = 1,125 + 187.50 = €1,312.50. These are the two Service Public examples. For €2,500 and 6 years and 6 months: 2,500 × 6.5 × 1/4 = €4,062.50.

Sources

Text checked on October 5, 2026

Good to know

This calculation gives the legal minimum. Many collective agreements provide more: the most favourable compensation then applies, and they do not add up. Service Public offers a tool to find your collective agreement.
The reference salary is the more favourable of the average of the last 12 months and of the last 3 months, with annual bonuses pro rata. After a recent sick leave, the months before the leave are taken.
Seniority is counted up to the actual end of the contract, that is the end of the notice period. The 8-month condition, however, is judged on the date the dismissal letter is sent.
Dismissal compensation adds to the compensatory payment for notice and for paid leave. It is partly exempt from tax and contributions: the exemption is total for the amount set by law or by the collective agreement (Service Public).
This is not legal advice: for a contested dismissal or a special case (part-time by periods, several employers), see an employment lawyer or a trade union.

Frequently asked questions

How is the statutory dismissal compensation calculated in France?

At least 1/4 of a month’s salary per year of seniority up to 10 years, and 1/3 of a month per year after 10 years, on the reference salary; an incomplete year counts pro rata by full months. With €1,500 and 3 years and 6 months it is €1,312.50; with 12 years and 9 months, €5,125 (the Service Public examples).

How much seniority do I need to be entitled to it?

At least 8 months of uninterrupted seniority with the same employer, judged on the date the dismissal letter is sent. A collective agreement, the contract or a custom may provide for shorter seniority.

What is the reference salary?

It is the salary on which the compensation is calculated: the more favourable of the monthly average of the last 12 months and of the last 3 months. In the second case, annual or exceptional bonuses count pro rata: 1/12 of the bonus is added to each of the 3 months.

Is the compensation due in case of serious misconduct?

No: in case of serious or gross misconduct, statutory compensation is not paid. But a collective agreement, the employment contract or a custom in the company may provide for it.

And for a conventional termination?

There is no seniority condition, and the specific compensation cannot be lower than the statutory dismissal compensation; the amount is negotiated and appears in the termination agreement. Since 1 September 2026, the maximum duration of unemployment benefit after a conventional termination is reduced, for example to 15 months before age 55 (Service Public).

Is dismissal compensation taxable?

Only in part: the amount set by law or by the collective agreement is fully exempt. If the compensation is higher, the exemption is limited to the higher of two amounts: 2 times the gross pay of the previous year, or half of the compensation, with a ceiling of €288,360 for compensation paid in 2026 (Service Public).