How to Calculate the Salary of an Employee on a Days-based Work Arrangement Hired Mid-year
Why does hiring an employee on a days-based arrangement mid-year pose payroll calculation difficulties?
The annual days-based system, governed by Articles L.3121-58 et seq. of the Labour Code, is a method of organising working time reserved for autonomous executives and certain employees whose working hours cannot be predetermined. When a days-based employee is hired during a calendar year or a reference year, two distinct calculations must necessarily be performed by the payroll department:
- Prorating the remuneration for the first incomplete month of work;
- Prorating the number of days to be worked for the remainder of the year.
These two operations follow strict rules, which are often misunderstood, and ignorance of these rules exposes the employer to back pay claims and disputes before the labour tribunal (conseil de prud’hommes). This article outlines the mandatory methodology, including formulas and a complete numerical example. For an overview of payroll mechanisms, please refer to our comprehensive payroll guide.
What is the mandatory method for prorating the salary of the first month for an employee on a days-based arrangement?
Contrary to what some payroll software may default to, the prorating of the remuneration for the first month of a days-based employee is conducted exclusively by calendar days. It is strictly prohibited to use a prorating based on working days, business days, the thirtieth or thirty-first day rule.
The applicable formula is as follows:
Salary for the month = Monthly remuneration − (Monthly remuneration ÷ Number of calendar days in the month × Number of calendar days not worked before hiring)
This formula results from the combined application of Articles L.3242-1 (monthly salary) and L.3121-58 et seq. of the Labour Code. The use of calendar days is justified as the days-based system deviates from hourly counting of working time: referencing calendar days is the only neutral and compliant approach to the very nature of the system.
Why are other methods of prorating prohibited?
The thirtieth (or thirty-first) day rule is a mechanism arising from case law applicable to employees whose working time is counted in hours. Applying it to a days-based employee would create an artificial distortion, at times beneficial and at other times detrimental to the employee, depending on the actual number of calendar days in the month of hiring. Similarly, prorating based on working days or business days is unsuitable for the days-based system, which relies on a count of worked and rest days over the year, rather than a weekly cycle of five or six days.
The Cour de cassation has repeatedly pointed out that days-based agreements must be interpreted strictly and that any calculation method not provided for by the applicable collective agreement or law is susceptible to being challenged (Cass. soc., 29 June 2011, No. 09-71.107). Therefore, it is imperative to adhere to the calendar day method, which is the only one compliant with the texts.
How to calculate the number of days to work for the remainder of the year after a mid-year hire?
The second calculation concerns determining the number of days the employee will actually need to work between their start date and the end of the reference year (generally 31 December for a year aligned with the calendar). This operation follows a mandatory five-step method (a → e), which we detail below.
Step (a): Determine the remaining calendar days in the year
This involves counting the total number of calendar days between the date of hire (inclusive) and the last day of the reference year (inclusive). For example, if hired on 15 April with a year aligned with the calendar, count from 15 April to 31 December, resulting in 261 calendar days.
Step (b): Subtract weekly rest days
Next, all Saturdays and Sundays (or weekly rest days as stipulated by the collective agreement) during this period are deducted. Article L.3132-1 of the Labour Code ensures weekly rest of at least 24 consecutive hours, plus an additional 11 hours of daily rest, culminating in 35 consecutive hours. For our example from 15 April to 31 December, typically 74 days of weekly rest (Saturdays and Sundays) are identified.
Step (c): Subtract public holidays that coincide with regular workdays
Only public holidays that fall on a day typically worked (generally Monday to Friday) are subtracted. Public holidays falling on a Saturday or Sunday do not need to be deducted as they are already neutralised in step (b). The articles L.3133-1 and L.3133-7 to L.3133-12 of the Labour Code set out the list of legal public holidays. For the period from 15 April to 31 December 2026, for example, we identify 6 public holidays falling on workdays (1 May, 8 May, 14 July, Ascension Thursday, 15 August, 1 November, 25 December according to the years — the actual count depends on the calendar of the respective year).
Step (d): Subtract prorated paid leave entitlement
The employee hired mid-year accrues 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 work. For an employee hired on 15 April, the rights accrued for the remaining reference period are calculated pro rata temporis. If the employee has not accrued any paid leave rights (first year of hire with no carryover), this step may yield zero, but it must still be formalised in the calculation.
Step (e): Subtract prorated rest days from the arrangement
Days off linked to the days-based arrangement (often referred to as “RTT forfait” or “JNT — non-working days”) must also be prorated based on the remaining period in the year. The annual number of rest days is determined by the classic formula: 365 days − 104 weekly rest days − X public holidays on workdays − 25 paid leave days − 218 working days = Y rest days. This number Y is then prorated based on the number of calendar days remaining compared to the total number of calendar days in the year. The result is rounded up to the nearest half-day according to the most protective practices unless stipulated otherwise by collective provision.
Final result and the 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 taken during the current year by a previous employer, it is necessary to add +1 day to the result obtained. It is the employer’s responsibility to verify this point at the time of hiring by asking the employee for a certificate from their previous employer.
What is the complete numerical example for a hire on 15 April with a salary of 4,000 euros and an arrangement of 218 days?
Let’s assume the following: an autonomous executive is hired on 15 April 2026 with a gross monthly salary of €4,000 and an annual arrangement of 218 days for a reference year aligned with the calendar (1 January – 31 December).
Calculation of salary for April
The month of April comprises 30 calendar days. The employee did not work from 1 to 14 April, amounting to 14 calendar days not worked.
Salary 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 15 April to 31 December
(a) Calendar days from 15 April to 31 December: 261 days
(b) Weekly rest days (Saturdays and Sundays): 74 days
(c) Public holidays on workdays (1 May, 8 May, Ascension, 14 July, 15 August, 1 November, 25 December): 7 days (the actual count varies depending on the 2026 calendar)
(d) Prorated paid leave rights accrued: the employee hired on 15 April has not yet accrued usable paid leave during the current year. We retain 0 days (or a possible carryover number).
(e) Prorated rest days from the arrangement: over the full year, the number of rest days is for example 10 days. Prorating: 10 × (261 ÷ 365) = 7.15 days, rounded to 7.5 days.
Result: 261 − 74 − 7 − 0 − 7.5 = 172.5 working days.
If the solidarity day has not been taken: 172.5 + 1 = 173.5 days.
This calculation should be formalised in a document annexed to the employment contract or in an amendment, to secure the contractual relationship and allow for the rigorous tracking of worked days. Use our days-based arrangement calculator for automated calculations.
What are the most common mistakes made by employers during this prorating?
Litigations related to the days-based arrangement when hiring mid-year reveal recurring errors that we catalogue below, along with the associated legal risks:
1. Using the thirtieth day rule for the salary of the first month. This error is the most frequent. It leads to a salary amount that differs from the correct amount, sometimes in favour of the employee, sometimes against them. In both cases, the employee can claim back pay under Article L.3242-1 of the Labour Code, with a three-year statute of limitations (Article L.3245-1).
2. Omission of prorating rest days. Some employers assign the full annual number of rest days to the employee hired mid-year, artificially reducing the number of working days and potentially causing difficulties in case of subsequent departure (settlement of pay balance).
3. Prorating the days to work based on working days rather than calendar days. The method (a) → (e) requires starting from calendar days. Using working days distorts all downstream calculations.
4. Failing to account for the solidarity day. Forgetting the solidarity day is common when hiring mid-year, even though the employee may not have taken this day with their previous employer. Nonetheless, Article L.3133-7 of the Labour Code mandates its annual execution.
5. Lack of written formalisation of calculations. The days-based agreement is a solemn act requiring the express consent of the employee (Cass. soc., 31 January 2012, No. 10-17.593), so the prorating of the arrangement in the case of a mid-year hire must be formalised in writing, ideally in the employment contract or in an amendment.
How to align the prorating of the days-based arrangement with reporting obligations in DSN?
The déclaration sociale nominative (DSN) mandates that the number of days worked by the days-based employee be reported monthly. In the case of a mid-month hire, the first DSN must reflect:
- The prorated remuneration in accordance with the formula described above;
- The actual number of days worked during the incomplete month;
- The prorated annual arrangement applicable to the employee.
It is essential to ensure that the payroll software settings are verified on these three points, as DSN anomalies can trigger requests for explanations from URSSAF or the complementary pension fund. To delve further into payroll mechanisms associated with the days-based arrangement, consult our payroll guide.
What are the applicable reference texts?
The legal framework for the days-based arrangement in the case of a mid-year hire is based on the following texts:
- Articles L.3121-58 et seq. of the Labour Code: general regime of the annual days-based arrangement;
- 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 should also refer to the collective agreement of the sector or company establishing the days-based arrangement, which may provide specific prorating methods, provided they are at least as favourable as the legal provisions.
FAQ — Frequently Asked Questions about the Payroll of an Employee on a Days-based Arrangement Hired Mid-year
Does the calendar day prorating apply in case of departure mid-month?
Yes. The method of prorating by calendar days is symmetrical: it applies to both arrival and departure during the month. The final settlement must be calculated using the same formula, keeping in mind 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 arrangement, the excess days must be handled in accordance with the provisions of Article L.3121-59 of the Labour Code: the employee may, with the employer’s consent, waive some of their rest days in exchange for a salary increase of at least 10%, formalised by an amendment to the employment contract.
Can the employer apply a different prorating method provided by the collective agreement?
A collective agreement may stipulate specific prorating methods, as long as they are at least as favourable as the legal method. However, the prorating of the salary of the first month by calendar days remains the only method compliant with the provisions of Article L.3242-1 of the Labour Code. The collective agreement cannot deviate from this in favour of the employee.
How should absences of a days-based employee hired mid-year be addressed?
Absences after hiring are deducted from the prorated arrangement according to the same rules as for an employee present throughout the year. Each day of absence (sickness, unpaid leave, etc.) reduces the number of working days by one and incurs a salary deduction calculated based on the daily salary (monthly remuneration ÷ 21.67 average working days, or according to the applicable conventional method).
Is a summary document required to be provided to the employee?
Article L.3121-65 of the Labour Code mandates that the employer establish a control document showing the number and dates of the days or half-days worked. In the case of a mid-year hire, this document must mention the prorated arrangement and track the worked days from the date of hiring.
For any questions related to managing the payroll of an employee on a days-based arrangement, do not hesitate to contact our firm. You can also use our online days-based arrangement calculator for instant calculations.