How to calculate the specific indemnity for conventional rupture?
Verified 01 January 2026 - Entreprendre Public Service / Directorate of Legal and Administrative Information (Prime Minister)
The employer and the employee may mutually agree to the termination of the DTA: titleContent. On this occasion, the employee receives a specific indemnity for a breach of contract. In some cases, the amount of the allowance may be subject to tax or social security contributions. We're taking a look at the regulations.
No, there is no seniority condition for receiving the conventional severance pay.
The amount of the specific compensation for breach of contract is negotiated between employer and employee. It is set out in the agreement of termination.
This amount cannot be less than statutory severance pay.
The amount of compensation can be estimated using the simulator for calculating the specific compensation for conventional breakup :
Calculate the amount of the conventional termination indemnity
FYI
Some treaty provisions, contractual or customary, may provide for a calculation formula other than that of the statutory indemnity. In this case, the employee receives the most favorable allowance.
The rules differ depending on whether the employee can benefit from a retirement pension from a legally compulsory scheme or not.
This condition is examined on the day of the termination of the employment contract.
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The employee can benefit from a retirement pension
The specific compensation for conventional breakup is taxable from 1er euro.
The employee cannot receive a retirement pension
The specific indemnity for conventional breakup is partly exempt of income tax.
The amount corresponding to the compensation fixed by law, collective agreement, professional or interprofessional agreement is fully exempt.
If the amount is higher, the exemption is limited to the highest of any of the following amounts:
- 2 times the amount of the gross annual remuneration received by the employee during the year preceding the termination of the employment contract
- Half the amount of the compensation.
Example :
An employee receives a specific indemnity for a breach of contract of €120,000 of which €70,000 is equal to the compensation provided for in its collective agreement. His gross remuneration for the calendar year preceding the termination of the contract is €40,000.
The specific indemnity for breach of contract is exempt up to the amount provided for in the collective agreement, i.e. €70,000.
This amount is greater than 50% of the compensation received (€120,000/ 2 = €60,000), but less than twice the annual gross remuneration, equal to 80 000 (€40,000 x2).
The compensation is therefore exempt up to the sum of €80,000.
The surplus of €40 000 (€120 000 - €80,000) is taxable.
Warning
The exemption shall be limited to a maximum of €288,360 .
The indemnity for breach of contract may be exempted from social contributions, CSG: titleContent and CRDS: titleContent under certain conditions.
Social contributions
The specific indemnity for conventional breakup is partly exempt from social security contributions.
The amount corresponding to the compensation fixed by law, collective agreement, professional or interprofessional agreement is fully exempt.
If the amount is higher, the exemption shall be limited to one of the following amounts, up to €96,120 :
- 2 times the amount of the gross annual remuneration received by the employee during the year preceding the termination of the employment contract
- Half the amount of the compensation.
Example :
If an employee receives a specific indemnity for breach of contract in the amount of €40,000 exempt from tax, the allowance is also exempt from social security contributions.
On the other hand, if he receives an indemnity of €100,000 exempt from tax, the allowance is then exempt from social contributions up to €96,120.
The portion of the compensation that exceeds that amount, or €3,880 (€100,000 - €96,120), is subject to social security contributions.
Warning
If the specific indemnity for contractual termination paid is greater than €480,600, it shall be subject to full contributions. No exemption is applicable.
CSG and CRDS
The indemnity for conventional rupture is exempt from CSG: titleContent and CRDS: titleContent according to the smallest of the following 2 limits:
- Amount of the indemnity for breach of contract provided for by law, collective agreement, professional or interprofessional agreement
- Amount of the allowance exempt from social security contributions, i.e. maximum €96,120.
Warning
If the severance pay paid is greater than €480,600, it is subject to CSG and CRDS in full. No exemption is applicable.
The indemnity for contractual termination is subject to a specific employer contribution of 40% on the share of the allowance exempt from social security contributions.
This contribution is paid by the employerto the National Old-Age Insurance Fund.
Calculate the amount of the conventional termination indemnity
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Circular n°2009-076 of 18 September 2009