French Labour Law

How to Calculate Paid Leave in Payroll in 2025: Complete Guide

DAIRIA Law · 2026-06-16 · 12 min

Introduction: Paid Leave, an Essential Calculation in Payroll

Calculating paid leave 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 obligatory comparison between the two methods, the specificities of temporary workers (intérimaires) and construction companies (BTP), and the major reform of the law of April 22, 2024 on the acquisition of leave during illness, payroll managers must master a dense regulatory corpus.

The BOSS (Bulletin Officiel de la Sécurité Sociale) provides essential clarifications on the impact of paid leave on the calculation of general exemptions and sector-specific peculiarities (BTP, interim). This comprehensive guide will help you navigate all aspects of calculating paid leave in 2025.

The Acquisition of Paid Leave

The Principle: 2.5 Working Days per Month of Effective Work

Every employee acquires 2.5 working days of paid leave for each month of effective work with the same employer, equaling 30 working days (5 weeks) for a full year of work. The reference period for acquisition runs from June 1 of year N-1 to May 31 of year N (unless a collective agreement provides for another period, such as the calendar year).

When the number of days acquired is not a whole number, it is rounded up to the next whole number. For example, an employee who has worked for 7 months acquires: 7 x 2.5 = 17.5, rounded to 18 working days.

Counting in Working Days

Many companies count leave in working days (Monday to Friday, totaling 5 days per week) rather than in calendar days (Monday to Saturday, totaling 6 days per week). In this case, the annual right is 25 working days instead of 30 calendar days.

The transition to working days must never be detrimental to the employee compared to the count in calendar days. Verification should be performed, particularly for employees whose days off do not correspond to Saturday.

Periods Equivalent to Effective Work

Certain periods of absence are considered equivalent to effective work for the acquisition of paid leave:

  • Paid leave itself
  • Maternity, paternity, and adoption leave
  • Stop for workplace accidents and occupational disease (limited to one year)
  • Training leave
  • RTT days (Reduced Working Time)
  • Ordinary sick leave (since the law of April 22, 2024)

The Revolution of the Law of April 22, 2024: Acquisition of Leave During Illness

The law n° 2024-364 of April 22, 2024 has profoundly changed the rules of acquiring paid leave during sick leave, transposing the case law of the Court of Justice of the European Union (CJUE).

The New Principle

Since this law, employees on non-work-related sick leave acquire paid leave, at a rate of 2 working days per month of absence (instead of 2.5 days for effective work), limited to 24 working days per year (instead of 30). This acquisition applies retroactively from December 1, 2009.

Practical Impact for Payroll Managers

This reform involves several concrete changes:

  • Payroll software must be configured to generate the acquisition of paid leave during ordinary sick leave.
  • A right to carry over is provided for leave not taken due to illness: the employee has 15 months after their return to take this leave.
  • The employer must inform the employee of their leave rights within one month of their return.
  • Retroactive adjustments (since December 2009) are limited to 2 working days per month of sick leave.

In practice, this reform increases the cost of absenteeism for employers and requires careful monitoring of leave counters in payroll software.

Calculating the Paid Leave Indemnity: Tenth Rule vs. Salary Maintenance

The paid leave indemnity (indemnité de congés payés) is the amount paid to the employee while on leave. It is calculated according to two methods, and the employer must apply the most favorable to the employee.

The Salary Maintenance Rule

The employee receives the remuneration they would have received if they had worked. Specifically, the payslip is prepared as if the employee were in normal activity: the same base salary, the same recurring bonuses, and the same benefits.

This method is straightforward to implement for employees with stable remuneration (monthly salaries without variation). It is generally more favorable for employees with a high fixed salary.

The Tenth Rule (10e)

The indemnity equals 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 indemnity from the previous period

Excluded are annual bonuses (13th month, holiday bonus) paid independently of taking leave, expense reimbursements, and exceptional bonuses not related to work.

The daily indemnity for a day of leave is calculated as follows:

Daily Indemnity = (Annual Gross Remuneration / 10) / Number of Paid Leave Days Acquired

Numerical Example of Comparison

An employee takes 12 working days of leave (2 weeks). Their monthly salary is €2,800. During the reference period, they received a total gross remuneration of €35,600 (including bonuses and overtime). They have acquired 30 days of paid leave.

Salary Maintenance Method:

  • The employee receives their usual salary of €2,800 for the entire month
  • Indemnity for 12 days = 2,800 x (12/26 working days worked) = €1,292.31

Tenth Method:

  • Tenth of the annual remuneration: 35,600 / 10 = €3,560
  • Indemnity for 12 days: 3,560 x (12/30) = €1,424

Comparison: €1,424 (10e) > €1,292.31 (maintenance). The employer must apply the tenth rule, which is more favorable to the employee in this case.

This comparison is mandatory for each period of leave taken. Payroll software performs this calculation automatically, but it is advisable to verify the parameters, especially the remuneration components included in the 10e base.

The Principle of Paid Leave Funds

In certain sectors, especially the BTP (building and public works), the management of paid leave is mutualized through paid leave funds. The employer pays contributions to the fund, which then directly pays the paid leave indemnities to employees.

The BOSS specifies the applicable rules regarding contributions paid by the funds:

  • 100% payment (code 100): the fund pays the entire paid leave indemnity directly to the employee.
  • 90% payment (code 90): the fund pays 90% of the indemnity, retaining the remaining 10% to cover social charges.

Impact on Social Contributions

The indemnities paid by paid leave funds are subject to social contributions. The employer must declare the amounts paid by the fund in the DSN (Déclaration Sociale Nominative) and include them in the contribution base. Payroll setup must be rigorous to avoid double counting.

Temporary Workers: The 1/10th Increase (10%)

The BOSS reminds that temporary workers benefit from a compensatory paid leave indemnity (ICCP) equal to 10% of total gross remuneration received during the assignment. This indemnity is paid at the end of each assignment (or monthly for long assignments).

Moreover, for the calculation of general exemptions from contributions, the BOSS provides a 1.1 increase in the reference SMIC (minimum wage) for temporary workers. This increase takes into account the 10% ICCP included in the remuneration.

Example: For a temporary worker in 2025, the reference monthly SMIC for calculating exemptions is:

1,801.80 x 1.1 = €1,981.98

This increase ensures that the temporary worker is not penalized in the calculation of the general reduction due to the ICCP.

The Impact of Paid Leave on General Exemptions

The BOSS specifies the modalities for integrating paid leave into the formulas for calculating general exemptions from employer contributions (formerly Fillon reduction).

The General Case

The paid leave indemnity is an integral part of the gross remuneration taken into account in the numerator of the reduction coefficient calculation formula. The SMIC in the denominator is calculated based on the remunerated hours, including the hours corresponding to paid leave.

The Funds in Exemptions

When leave is managed by a fund (BTP), the BOSS provides specific formulas incorporating the contribution rates of the paid leave fund into the calculation. The employer does not directly pay the paid leave indemnity, but the fund contribution impacts the calculation of the exemption.

The formula for calculating coefficient T (maximum reduction rate) integrates the paid leave contributions paid to the fund, which modifies the threshold for the gradual decrease of the exemption.

Counting Taken Paid Leave

Accounting in Working Days

The accounting in working days (from Monday to Saturday, totaling 6 days per week) is the legal counting method. The first day of leave counted is the first working day the employee was supposed to work. The last counted day is the last working day before resuming, including Saturday.

Example: An employee working from Monday to Friday takes a week of leave from Monday to Friday. In working days, the count is 6 days (Monday, Tuesday, Wednesday, Thursday, Friday, Saturday).

Accounting in Working Days

In terms of working days (the days usually worked, generally from Monday to Friday), the same week of leave corresponds to 5 working days.

The transition from one counting method to another must not disadvantage the employee. Verification is done across the total annual rights: 30 working days = 25 working days = 5 weeks of leave.

Compensatory Indemnity for Paid Leave (ICCP) Upon Departure

Upon termination of the employment contract (regardless of the cause: resignation, dismissal, mutual termination, end of CDD), the employee receives a compensatory indemnity for accrued and untaken leave.

The calculation of the ICCP follows the same rules as the paid leave indemnity: comparison between the 10e and maintenance, applying the most favorable method.

Example: An employee leaves the company with a balance of 15 working days of untaken leave. Their gross remuneration during the reference period is €34,000.

  • 10e: 34,000 / 10 = €3,400
  • ICCP for 15 days: 3,400 x (15/30) = €1,700

This indemnity is subject to social contributions and withholding tax under common law provisions.

The law of April 22, 2024 also introduced important rules regarding the articulation between paid leave and illness:

  • An employee who falls ill during their leave can now carry over the days of leave not taken due to illness, provided they justify their absence.
  • The carry-over right is limited to 15 months after the end of the leave period.
  • The employer must inform the employee of their carry-over rights within one month after their return.

These new provisions strengthen employee protection and impose more detailed management of leave counters by HR departments.

Summary Table of Key Rules in 2025

  • Acquisition: 2.5 working days/month (effective work) or 2 working days/month (non-work-related illness)
  • Annual Rights: 30 working days (25 working days) = 5 weeks
  • Paid Leave Indemnity: max(salary maintenance, 1/10th of annual gross remuneration)
  • Temporary Workers: ICCP of 10% + SMIC increase x 1.1 for exemptions
  • Paid Leave Funds (BTP): payment 100% or 90% depending on the fund code
  • Illness: acquisition of 2 working days/month since the law of April 22, 2024
  • Carry-Over: 15 months after return for leave acquired during illness

FAQ: Your Questions on Paid Leave in Payroll in 2025

Is the employer always obligated to compare the tenth rule and salary maintenance?

Yes, the comparison between the two methods is a legal obligation for each leave taken. The employer must calculate the indemnity according to both methods and apply the more favorable one to the employee. This comparison can be made globally across all leaves for the period or for each leave taken. In practice, payroll software performs this comparison automatically, but it is essential to verify that the basis for the 10e correctly includes all required remuneration components.

Does an employee on sick leave acquire as much leave as an employee on duty?

No, since the law of April 22, 2024, an employee on non-work-related sick leave acquires 2 working days per month (instead of 2.5 for effective work), limited to 24 working days per year. However, an employee on leave for workplace accidents or occupational diseases continues to acquire 2.5 working days per month, as if they were on active duty, limited to one year of absence.

How does the 1.1 increase for temporary workers function in calculating exemptions?

The 1.1 increase in the reference SMIC for temporary workers aims to neutralize the impact of the 10% ICCP in calculating general exemptions. Without this increase, the ICCP would artificially inflate the temporary worker’s gross remuneration compared to the SMIC, thus reducing the amount of the exemption. With the increase, the reference SMIC rises from €1,801.80 to €1,981.98 in 2025, maintaining a balance in the calculation.

What are the consequences of failing to respect the right to carry-over leave after illness?

If the employer does not adhere to the 15-month carry-over right established by the law of April 22, 2024, they expose themselves to a risk of practical court condemnation for damages. The employee could claim compensation for lost leave calculated according to the most favorable method (10e or maintenance). Furthermore, the employer is obligated to inform the employee of their rights within a month after their return. Failure to inform may be considered a fault engaging the employer’s liability.

Is the compensatory indemnity for paid leave subject to social contributions?

Yes, the ICCP is fully subject to social contributions and withholding tax under common law provisions. It is included in the basis for all contributions (social security, unemployment, supplementary retirement, CSG/CRDS) and also factors into the calculation of net social amount (MNS) and taxable net income. It must appear on the final account statement and on the last payslip of the employee.

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