Calculating Payroll for Employees on Annual Days Package Hired Mid-Year in France

Why does hiring an employee on an annual days package mid-year present payroll calculation challenges?

The annual days package, governed by Articles L.3121-58 and following of the Labour Code, is a working time arrangement reserved for autonomous executives and certain employees whose working hours cannot be predetermined. When an employee on this package is hired mid-calendar year or mid-reference period, two separate calculations must be conducted by the payroll department:

Pro rata of the compensation for the first incomplete month of work;
Pro rata of the number of days to be worked for the remaining period.

These two operations follow strict rules, often misunderstood, and ignorance of them can expose the employer to back pay claims and disputes before the labour court. This article details the mandatory methodology, supported by formulas, with a complete numerical example. For an overview of payroll mechanisms, consult our comprehensive payroll guide.

What is the mandatory method for pro-rating the pay of an employee on an annual days package for the first month?

Contrary to what some payroll software defaults to, the pro-rata of compensation for the first month of an employee on an annual days package is to be calculated exclusively using calendar days. It is strictly forbidden to resort to a pro-rata based on working days, business days, or the thirtieth or thirty-first rule.

The applicable formula is as follows:

Pay for the month = Monthly compensation − (Monthly compensation ÷ Number of calendar days in the month × Number of non-working calendar days before hiring)

This formula arises from the combined application of Articles L.3242-1 (monthly salary) and L.3121-58 and following of the Labour Code. The reference to calendar days is justified because the annual days package deviates from the hourly accounting of working time: referencing calendar days is the only neutral approach that aligns with the very nature of the package.

Why are other methods of proration prohibited?

The thirtieth (or thirty-first) rule is a mechanism derived from case law applicable to employees whose working time is counted in hours. Applying it to an employee on an annual days package would create an artificial distortion, sometimes favorable, sometimes unfavorable to the employee, depending on the actual number of calendar days in the month of hiring. Similarly, pro-rating based on working or business days is unsuitable for the annual days package, which relies on counting working days and rest days over the year, rather than a weekly logic of five or six days.

The Cour de cassation has repeatedly reminded that agreements concerning annual days packages must be interpreted strictly, and any method of calculation not provided for by the applicable collective agreement or by law may be challenged (Cass. soc., June 29, 2011, no. 09-71.107). It is therefore imperative to adhere to the calendar days method, which is the only one compliant with the texts.

How to calculate the number of days to be worked for the remaining period after hiring mid-year?

The second calculation to be performed concerns determining how many days the employee must actually work between their hire date and the end of the reference period (generally December 31 for a calendar year). This operation follows a mandatory five-step method (a → e) detailed below.

Step (a): Determine the remaining calendar days for the period

This involves counting the total number of calendar days from the hire date (inclusive) to the last day of the reference period (inclusive). For example, for a hire date of April 15 with a reference period aligned with the calendar year, we count from April 15 to December 31, which totals 261 calendar days.

Step (b): Subtract weekly rest days

Next, all Saturdays and Sundays (or weekly rest days stipulated by the collective agreement) falling within the period are deducted. Article L.3132-1 of the Labour Code guarantees a weekly rest period of at least 24 consecutive hours, plus 11 hours of daily rest, totaling 35 consecutive hours. In our April 15 to December 31 example, we typically identify 74 days of weekly rest (Saturdays and Sundays).

Step (c): Subtract public holidays coinciding with a normal working day

Only public holidays falling on a normally worked day (generally Monday to Friday) should be deducted. Public holidays that fall on a Saturday or Sunday do not need to be deducted as they have already been neutralized in step (b). Articles L.3133-1 and L.3133-7 to L.3133-12 of the Labour Code set the list of public holidays. For the period from April 15 to December 31, 2026, we might identify 6 public holidays that fall on a working day (May 1, May 8, July 14, Ascension Thursday, August 15, November 1, and December 25 depending on the year — the exact count depends on the calendar for the year considered).

Step (d): Subtract prorated paid leave rights

The employee hired mid-year acquires prorated paid leave rights under Article L.3141-1 of the Labour Code. These rights must be estimated and deducted from the number of days to be worked. For an employee hired on April 15, the rights acquired over the remaining reference period are calculated proportionally. If the employee has not accrued any paid leave rights (first year of employment without carryover), this step may yield zero, but it must still be formalized in the calculation.

Step (e): Subtract prorated days off from the package

The days off linked to the package (often referred to as “RTT forfait” or “JNT — non-working days”) must also be prorated concerning the remaining period of the year. The annual number of days off is calculated using the classic formula: 365 days − 104 weekly rest days − X public holidays on working days − 25 paid leave days − 218 worked days = Y days off. This number Y is then prorated based on the remaining calendar days relative to the total number of calendar days in the year. The result is rounded to the nearest half-day in line with the most protective practices, unless a collective agreement provides otherwise.

Final result and solidarity day

The number of days to work is equal to: (a) − (b) − (c) − (d) − (e). If the solidarity day (Article L.3133-7 of the Labour Code) has not yet been performed for the current year by a previous employer, it is necessary to add +1 day to the resulting total. It is the employer’s responsibility to verify this point at the time of hiring by requesting a certificate from the previous employer.

What is the complete numerical example for a hire on April 15 with a salary of 4,000 euros and a package of 218 days?

Let us consider the following assumption: an executive is hired on April 15, 2026, with a gross monthly remuneration of 4,000 € and an annual package of 218 days for a reference period aligned with the calendar year (January 1 – December 31).

Calculation of pay for the month of April

The month of April has 30 calendar days. The employee was not working from April 1 to April 14, which totals 14 non-working calendar days.

Pay for April = 4,000 − (4,000 ÷ 30 × 14) = 4,000 − 1,866.67 = 2,133.33 €

Calculation of the number of days to work from April 15 to December 31

(a) Calendar days from April 15 to December 31: 261 days
(b) Weekly rest (Saturdays and Sundays): 74 days
(c) Public holidays on working days (May 1, May 8, Ascension, July 14, August 15, November 1, December 25): 7 days (the exact count varies based on the 2026 calendar)
(d) Rights to prorated paid leave acquired: the employee hired on April 15 has not yet acquired usable paid leave rights for the current year. This gives us 0 days (or the number of days carried over, if applicable).
(e) Prorated days off from the package: for the full year, the number of days off could be 10 days. Proration: 10 × (261 ÷ 365) = 7.15 days, rounded to 7.5 days.

Result: 261 − 74 − 7 − 0 − 7.5 = 172.5 days to work.

If the solidarity day has not been performed: 172.5 + 1 = 173.5 days.

This calculation must be formalized in a document attached to the employment contract or in an amendment, in order to secure the contractual relationship and allow for rigorous tracking of the number of days worked. Use our days package simulator to automate this calculation.

What are the most common errors made by employers during this pro-rata?

Disputes related to the annual days package in cases of hiring mid-year reveal recurring errors, which we list below along with the associated legal risks:

1. Use of the thirtieth rule for the first month’s pay. This error is the most common. It results in a pay amount different from the correct amount, sometimes favoring the employee, sometimes to their detriment. In either case, the employee can claim back pay based on Article L.3242-1 of the Labour Code, with a three-year limitation period (Article L.3245-1).

2. Omission of pro-rating rest days. Some employers grant the full number of annual days off to an employee hired mid-year, which artificially reduces the number of days worked and may create difficulties in the case of future departure (adjustment on the final pay).

3. Pro-rating the number of days to be worked based on working days rather than calendar days. The method (a) → (e) requires starting from calendar days. Starting from working days distorts the entire downstream calculation.

4. Failure to account for the solidarity day. Forgetting the solidarity day is common when hiring mid-year, even though the employee may not have performed this day with their previous employer. Article L.3133-7 of the Labour Code requires its annual completion.

5. Lack of written formalization of the calculation. Since the annual days package is a solemn act requiring the express agreement of the employee (Cass. soc., January 31, 2012, no. 10-17.593), the pro-rata in the case of mid-year hiring must be formalized in writing, ideally in the employment contract or in an amendment.

How to align the pro-rata of the annual days package with reporting obligations in DSN?

The Déclaration Sociale Nominative (DSN) requires reporting the number of days worked by the employee on an annual days package each month. In cases of hiring mid-month, the first DSN must reflect:

The prorated remuneration according to the formula described above;
The actual number of days worked in the incomplete month;
The prorated annual package applicable to the employee.

It is essential to verify that the payroll software is configured correctly on these three points, as DSN anomalies could trigger requests for clarification from URSSAF or the supplementary pension fund. To delve deeper into payroll mechanisms related to the annual days package, refer to our payroll guide.

What are the applicable reference texts?

The legal framework for the annual days package in cases of mid-year hiring is based on the following texts:

Articles L.3121-58 and following of the Labour Code: general system for the annual package in days;
Article L.3242-1 of the Labour Code: monthly salary;
Article L.3132-1 of the Labour Code: weekly rest;
Article L.3133-1 of the Labour Code: list of legal public holidays;
Articles L.3133-7 to L.3133-12 of the Labour Code: solidarity day;
Article L.3141-1 of the Labour Code: paid leave.

The employer must also refer to the relevant collective agreement instituting the annual days package, which may provide specific pro-rating modalities, provided they are at least as favorable as the legal provisions.

FAQ — Frequently asked questions about the payroll of an employee on an annual days package hired mid-year

Does the pro-rata by calendar days also apply in the case of departure mid-month?

Yes. The pro-rata method by calendar days is symmetrical: it applies both to hiring and to departure mid-month. The final pay must be calculated using the same formula, taking into account the actual number of calendar days worked in the last month.

What happens if the employee exceeds the prorated number of days?

If the employee works more days than the prorated package, the excess days must be treated in accordance with the provisions of Article L.3121-59 of the Labour Code: with the employer’s agreement, the employee may waive some of their days off in exchange for a salary increase of at least 10%, formalized by an amendment to the employment contract.

Can the employer apply a different pro-rating method provided by the collective agreement?

A collective agreement may provide specific pro-rating modalities, as long as they are at least as favorable as the legal method. However, pro-rating the pay for the first month using calendar days remains the only method compliant with the provisions of Article L.3242-1 of the Labour Code. The collective agreement cannot derogate from this in a manner unfavorable to the employee.

How to treat absences of an employee on the annual days package hired mid-year?

Absences after hiring are deducted from the prorated package based on the same rules as for an employee present throughout the year. Each day of absence (sick leave, unpaid leave, etc.) reduces the number of days to be worked by one unit and leads to a salary deduction calculated based on the daily rate (monthly remuneration ÷ 21.67 working days on average, or according to the applicable collective method).

Should a summary document be provided to the employee?

Article L.3121-65 of the Labour Code requires the employer to establish a control document showing the number and date of the whole or half days worked. In cases of hiring mid-year, this document should indicate the applicable prorated package and track the days worked starting from the hiring date.

For any questions about managing payroll for an employee on an annual days package, do not hesitate to contact our firm. You can also use our online annual days package simulator for an instant calculation.