Prud'hommes: what is the lump sum conciliation allowance?

Verified 22 May 2026 - Entreprendre Public Service / Directorate of Legal and Administrative Information (Prime Minister)

In the event of a dispute between the employer and the employee concerning the dismissal, the employee may refer the matter to the labor court. A first step in the labor court procedure is to reach an agreement between the two parties. That's what we call the conciliation. This agreement provides for the payment of a lump sum conciliation allowance. We're taking a look at the regulations.

During conciliation, the agreement may be proposed either by the employer, or by the employee, or by the conciliation and guidance office of the labor court itself.

Minutes shall be drawn up if the parties agree.

The amount of the allowance is determined on the basis of a scale which takes account of the length of service of the employee:

Tableau - Amount of the lump sum conciliation allowance

Seniority of the employee

Amount of compensation

Less than 1 year

2 months salary

Between 1 year and under 8 years

3 months of salary for 1 year, plus 1 additional month per year of service

Between 8 and under 12

10 months salary

Between 12 and under 15

12 months salary

Between 15 and under 19

14 months salary

Between 19 and under 23

16 months salary

Between 23 and under 26

18 months salary

Between 26 and under 30

20 months salary

30 years or older

24 months salary

The agreement between the employer and the employee terminates the dispute between the parties.

The minutes recording the agreement shall constitute a waiver of any claims and indemnities that may be granted in the event of null, unjustified or irregular dismissal.

Yes, the conciliation indemnity may be cumulated with the statutory, contractual or contractual indemnities linked to the termination of the employment contract (termination indemnity, compensatory indemnity for paid leave, compensatory indemnity for notice, non-compete indemnity...).)

The lump sum conciliation allowance is not taxable when paid into the limit of the regulatory scale.

Tableau - Amount of the lump sum conciliation allowance

Seniority of the employee

Amount of compensation

Less than 1 year

2 months salary

Between 1 year and under 8 years

3 months of salary for 1 year, plus 1 additional month per year of service

Between 8 and under 12

10 months salary

Between 12 and under 15

12 months salary

Between 15 and under 19

14 months salary

Between 19 and under 23

16 months salary

Between 23 and under 26

18 months salary

Between 26 and under 30

20 months salary

30 years or older

24 months salary

Yes, the lump-sum conciliation allowance may be exempted from social security contributions, of CSG: titleContent and CRDS: titleContent under certain conditions.

Social contributions

The compensation paid in connection with the conciliation and within the limits of the regulatory scale is exempt contributions up to a limit of 2 times the annual social security ceiling (i.e €96,120).

The scale within which the conciliation allowance is exempt from social security contributions is as follows:

Tableau - Amount of the lump sum conciliation allowance

Seniority of the employee

Amount of compensation

Less than 1 year

2 months salary

Between 1 year and under 8 years

3 months of salary for 1 year, plus 1 additional month per year of service

Between 8 and under 12

10 months salary

Between 12 and under 15

12 months salary

Between 15 and under 19

14 months salary

Between 19 and under 23

16 months salary

Between 23 and under 26

18 months salary

Between 26 and under 30

20 months salary

30 years or older

24 months salary

The compensation paid in connection with the conciliation and within the limits of the regulatory scale is exempt CSG and CRDS in the limit the total amount excluded from the contribution base. This amount takes into account the termination indemnity and the indemnity awarded by the judge.

The excess fraction is subject to the CSG and CRDS.

The scale within which the conciliation allowance is exempt from CSG and CRDS is as follows:

Tableau - Amount of the lump sum conciliation allowance

Seniority of the employee

Amount of compensation

Less than 1 year

2 months salary

Between 1 year and under 8 years

3 months of salary for 1 year, plus 1 additional month per year of service

Between 8 and under 12

10 months salary

Between 12 and under 15

12 months salary

Between 15 and under 19

14 months salary

Between 19 and under 23

16 months salary

Between 23 and under 26

18 months salary

Between 26 and under 30

20 months salary

30 years or older

24 months salary

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