Calculating Paid Leave in French Payroll in 2026: A Complete Employer Guide
Introduction: paid leave, an unavoidable payroll calculation
Calculating paid leave (congés payés) is one of the most recurrent and technical operations in payroll management. Between the tenth rule (règle du dixième) and salary maintenance (maintien de salaire), the mandatory comparison between the two methods, the specific rules for temporary (intérim) workers and construction (BTP) companies, and the major reform introduced by the Act of 22 April 2024 on leave accrual during sick leave, payroll managers must master a dense body of regulations.
The BOSS (Bulletin Officiel de la Sécurité Sociale, the official social security bulletin) provides essential clarifications on the impact of paid leave in the calculation of general contribution reductions and on sector-specific rules (construction, temporary work). This complete guide helps you master every aspect of the paid leave calculation in 2025.
Accrual of paid leave
The principle: 2.5 working days per month of actual work
Every employee accrues 2.5 working days (jours ouvrables) of paid leave per month of actual work with the same employer, i.e. 30 working days (5 weeks) for a full year of work. The reference period for accrual runs from 1 June of year N-1 to 31 May of year N (unless a collective agreement provides for another period, for example the calendar year).
When the number of accrued days is not a whole number, it is rounded up to the next whole number. For example, an employee who has worked 7 months accrues: 7 x 2.5 = 17.5, rounded up to 18 working days.
Counting in business days
Many companies count leave in business days (jours ouvrés, Monday to Friday, i.e. 5 days per week) rather than in working days (jours ouvrables, Monday to Saturday, i.e. 6 days per week). In this case, the annual entitlement is 25 business days instead of 30 working days.
Switching to business days must never be less favourable to the employee than the working-days count. A verification must be carried out, particularly for employees whose rest days do not fall on a Saturday.
Periods treated as actual work
Certain periods of absence are treated as actual work for the accrual of paid leave:
- Paid leave itself
- Maternity, paternity and adoption leave
- Absences for occupational accidents and occupational illness (up to one year)
- Training leave
- RTT days (working-time reduction days)
- Ordinary sick leave (since the Act of 22 April 2024)
The revolution of the Act of 22 April 2024: paid-leave accrual during sick leave
Act No. 2024-364 of 22 April 2024 substantially amended the rules for accruing paid leave during sick leave, transposing the case law of the Court of Justice of the European Union (CJEU).
The new principle
Since this Act, employees on non-occupational sick leave accrue paid leave at the rate of 2 working days per month of absence (instead of 2.5 days for actual work), up to a limit of 24 working days per year (instead of 30). This accrual applies retroactively from 1 December 2009.
Practical impact for payroll managers
This reform entails several concrete changes:
- Payroll software must be configured to generate paid-leave accrual during ordinary sick leave
- A right to carry over is provided for leave not taken due to illness: the employee has 15 months after returning to work to take this leave
- The employer must inform the employee of their leave entitlements within the month following their return
- Retroactive adjustments (from December 2009) are capped at 2 working days per month of sick leave
In practice, this reform increases the cost of absenteeism for employers and requires rigorous tracking of leave counters in payroll software.
Calculating the paid-leave allowance: the tenth rule vs. salary maintenance
The paid-leave allowance is the amount paid to the employee during their leave. It is calculated using two methods, and the employer must apply the one more favourable to the employee.
The salary-maintenance rule
The employee receives the remuneration they would have earned had they worked. Concretely, the payslip is drawn up as if the employee were in normal activity: same base salary, same recurring bonuses, same benefits.
This method is simple to implement for employees whose pay is stable (monthly-paid with no variation). It is generally more favourable for employees with a high fixed salary.
The tenth rule (10th)
The allowance is equal to 1/10th of the total gross remuneration received during the reference period. All remuneration components are taken into account:
- Base salary
- Overtime
- Work-related bonuses (seniority bonus, performance bonus, etc.)
- Benefits in kind
- Paid-leave allowance from the previous period
Excluded are: annual bonuses (13th month, holiday bonus) paid independently of taking leave, expense reimbursements and exceptional bonuses unrelated to work.
The tenth-rule allowance for a day of leave is calculated as follows:
Daily allowance = (Annual gross remuneration / 10) / Number of accrued paid-leave days
Worked example of the comparison
An employee takes 12 working days of leave (2 weeks). Their monthly salary is €2,800. During the reference period, they received total gross remuneration of €35,600 (including bonuses and overtime). They accrued 30 days of paid leave.
Salary-maintenance method:
- The employee receives their usual €2,800 salary for the full month
- Allowance for 12 days = 2,800 x (12/26 working days worked) = €1,292.31
Tenth method:
- Tenth of annual remuneration: 35,600 / 10 = €3,560
- Allowance for 12 days: 3,560 x (12/30) = €1,424
Comparison: €1,424 (tenth) > €1,292.31 (maintenance). The employer must apply the tenth rule, which is more favourable to the employee in this case.
This comparison is mandatory each time leave is taken. Payroll software performs this calculation automatically, but it is advisable to check the settings, particularly the remuneration components included in the tenth-rule base.
Paid-leave funds: the case of the construction sector (BTP)
The principle of paid-leave funds
In certain sectors of activity, notably the BTP (building and public works), paid-leave management is pooled through paid-leave funds (caisses de congés payés). The employer pays contributions to the fund, which then pays the paid-leave allowances directly to the employees.
The BOSS sets out the applicable rules for payment by the funds:
- 100% payment (code 100): the fund pays the full paid-leave allowance directly to the employee
- 90% payment (code 90): the fund pays 90% of the allowance, the remaining 10% being retained to cover social security charges
Impact on social security contributions
The allowances paid by paid-leave funds are subject to social security contributions. The employer must declare the amounts paid by the fund in the DSN (Déclaration Sociale Nominative, the nominative social declaration) and include them in the contribution base. Payroll configuration must be rigorous to avoid double counting.
Temporary workers: the 1/10th (10%) uplift
The BOSS recalls that temporary workers are entitled to a compensatory paid-leave allowance (ICCP) equal to 10% of the total gross remuneration received during the assignment. This allowance is paid at the end of each assignment (or each month for a long assignment).
In addition, for the calculation of general contribution reductions, the BOSS provides for a 1.1 uplift of the reference minimum wage (SMIC) (a multiplier coefficient) for temporary workers. This uplift takes account of the 10% ICCP included in the remuneration.
Example: For a temporary worker in 2026, the monthly reference SMIC for calculating the reductions is:
1,867.02 x 1.1 = €2,053.72 (SMIC as of 1 June 2026)
This uplift ensures that the temporary worker is not penalised in the calculation of the general reduction because of the ICCP.
The impact of paid leave on general contribution reductions
The BOSS sets out the procedures for incorporating paid leave into the formulas for calculating general reductions of employer contributions (the single degressive general reduction since 1 January 2026, Article L.241-13 of the French Social Security Code).
The general case
The paid-leave allowance is an integral part of the gross remuneration taken into account in the numerator of the reduction coefficient formula. The SMIC in the denominator is calculated on the basis of paid hours, including the hours corresponding to paid leave.
Paid-leave funds in the reductions
Where leave is managed by a fund (construction sector), the BOSS provides for specific formulas incorporating the fund contribution rates into the calculation. The employer does not pay the paid-leave allowance directly, but the fund contribution affects the reduction calculation.
The formula for calculating the T coefficient (maximum reduction rate) incorporates the paid-leave contributions paid to the fund, which modifies the degressivity threshold of the reduction.
Counting paid leave taken
Counting in working days
Counting in working days (jours ouvrables, Monday to Saturday, i.e. 6 days per week) is the statutory counting method. The first day of leave counted is the first working day on which the employee should have worked. The last day counted is the last working day before returning to work, Saturday included.
Example: An employee working Monday to Friday takes one week of leave from Monday to Friday. In working days, the count is 6 days (Monday, Tuesday, Wednesday, Thursday, Friday, Saturday).
Counting in business days
In business days (jours ouvrés, days usually worked, generally Monday to Friday), the same week of leave corresponds to 5 business days.
Switching from one counting method to the other must not disadvantage the employee. The verification is carried out on the total annual entitlement: 30 working days = 25 business days = 5 weeks of leave.
The compensatory paid-leave allowance (ICCP) on departure
Upon termination of the employment contract (whatever the cause: resignation, dismissal, rupture conventionnelle (mutually agreed termination), end of a fixed-term contract), the employee receives a compensatory allowance for accrued and untaken leave.
The calculation of the ICCP follows the same rules as the paid-leave allowance: comparison between the tenth and the maintenance methods, applying the more favourable one.
Example: An employee leaves the company with a balance of 15 working days of untaken leave. Their gross remuneration over the reference period is €34,000.
- Tenth: 34,000 / 10 = €3,400
- ICCP for 15 days: 3,400 x (15/30) = €1,700
This allowance is subject to social security contributions and to withholding tax at source under standard conditions.
Paid leave and illness: the new rules since 2024
The Act of 22 April 2024 also introduced important rules on the interaction between paid leave and illness:
- An employee who falls ill during their leave may now carry over the leave days not taken because of the illness, provided they can prove a sick-leave certificate
- The right to carry over is limited to 15 months after the end of the leave-taking period
- The employer must inform the employee of their carry-over rights within one month of returning to work
These new provisions strengthen employee protection and require HR departments to manage leave counters more finely.
Summary table of key rules in 2026
- Accrual: 2.5 working days/month (actual work) or 2 working days/month (non-occupational illness)
- Annual entitlement: 30 working days (25 business days) = 5 weeks
- Paid-leave allowance: max(salary maintenance, 1/10th of annual gross remuneration)
- Temporary workers: 10% ICCP + SMIC x 1.1 uplift for reductions
- Paid-leave funds (construction): 100 or 90 payment depending on the fund code
- Illness: accrual of 2 working days/month since the Act of 22 April 2024
- Carry over: 15 months after return to work for leave accrued during illness
FAQ: your questions on paid leave in payroll in 2026
Is the employer always required to compare the tenth rule and salary maintenance?
Yes, the comparison between the two methods is a legal obligation each time leave is taken. The employer must calculate the allowance using both methods and apply the one more favourable to the employee. This comparison may be carried out globally over all leave in the period or each time leave is taken. In practice, payroll software performs this comparison automatically, but it is essential to check that the tenth-rule base indeed includes all the required remuneration components.
Does an employee on sick leave accrue as much leave as an active employee?
No. Since the Act of 22 April 2024, an employee on non-occupational sick leave accrues 2 working days per month (instead of 2.5 for actual work), up to a limit of 24 working days per year. However, an employee on leave for an occupational accident or occupational illness continues to accrue 2.5 working days per month, as if they were active, up to one year of absence.
How does the 1.1 uplift for temporary workers work in the reduction calculation?
The 1.1 uplift of the reference SMIC for temporary workers aims to neutralise the effect of the 10% ICCP in the calculation of general reductions. Without this uplift, the ICCP would artificially increase the temporary worker’s gross remuneration relative to the SMIC, thereby reducing the amount of the reduction. With the uplift, the reference SMIC rises from €1,867.02 to €2,053.72 as of 1 June 2026, which maintains the balance of the calculation.
What are the consequences of failing to comply with the right to carry over leave after illness?
If the employer fails to comply with the 15-month carry-over right established by the Act of 22 April 2024, they expose themselves to the risk of a labour tribunal award of damages. The employee could claim compensation corresponding to the lost leave, calculated using the more favourable method (tenth or maintenance). In addition, the employer is required to inform the employee of their rights within the month following their return. Failure to inform could be regarded as a fault engaging the employer’s liability.
Is the compensatory paid-leave allowance subject to social security contributions?
Yes, the ICCP is fully subject to social security contributions and to withholding tax at source under standard conditions. It is included in the base of all contributions (social security, unemployment, supplementary pension, CSG/CRDS). It also enters into the calculation of the net social amount (MNS) and taxable net pay. It must appear on the final settlement account (solde de tout compte) and on the employee’s final payslip.