Paid leave: understand everything about your remuneration

modified: 2023-01-19 12:45:02

In France, all employees benefit from well-deserved rest periods throughout the year, thanks to paid holidays.

  Paid leave: understand everything about your remuneration

Since 1936, the French people have acquired the right to have paid holidays . These days of rest, accumulated while working, allow you to go on vacation and spend time with loved ones. Each month, you can validate 2.5 days off . If you practice full time, this means that you are entitled to 30 days per year. During these non-working days, you still continue to receive remuneration. But how do employers calculate this compensation? There are several formulas to determine the amount you can receive in place of your usual salary.

Paid leave compensation: what are we talking about?

If you are one of employees , you are entitled to your paid holidays. And this, whether you are full-time or full-time. The labor code also does not distinguish between managers and employees. But it also provides that your remuneration must remain equivalent to your salary. Thus, many people are unaware of the very existence of paid vacation allowance .

However, this payment replaces your regular salary during your vacation… Most of the time, your employer manages the calculation and transmission of this sum himself. So you don't have to do anything to get your vacation pay . In some cases, particularly in the construction, public works or entertainment sectors, a dedicated fund handles payment . Again, your employer must carry out all the necessary formalities with this fund.

Finally, it happens that workplaces close at certain times of the year . And this, even outside of your holidays. If necessary, your employer must pay you a daily allowance. Nevertheless, it remains completely separate from the remuneration of your paid vacation days .

What formula determines the amount of this indemnity?

To calculate the amounts you should receive, your employer can use two methods . That said, he cannot choose the one that suits him the most. In fact, it's quite the opposite. Thus, between the two formulas, it must choose the one that gives the highest amount . Thus, the calculation chosen is always the one that benefits you the most.

  • The first formula for paid leave compensation is based on the gross remuneration you received during the reference period . This runs from June 1 of year n-1 to May 31 of the current year. In this case, your remuneration will amount to 10% of the total wages earned during these 12 months.
  • The second way of calculate the paid vacation allowance corresponds to the salary you should have earned while working. To determine the amount, the employer must base himself on the normal working time. For this, several factors come into play. The actual schedule for the month, the average number of working days as well as working days . But also the actual number of working days and working days. On the other hand, certain elements of your remuneration will not count in this calculation paid leave allowance. This includes profit-sharing, end-of-year, balance sheet and profit-sharing bonuses, as well as professional expenses.

Paid leave allowance: an example to better understand what awaits you

To better understand the above explanations, nothing like a practical case . Thus, we are going to study the situation of an employee, who received 23,040 euros during his reference period. And who receives 1,920 euros gross per month. In this example we will calculate compensation that can be expected for 2 weeks of paid vacation.

  • First, let's try the first method, according to the remuneration , corresponds to the reference period. It amounts to 23,040 euros. If we retain only 1 0% of this amount , we get 2,304 euros for a full-time month. That is 25 working days. Thus, for two weeks of paid vacation days, there are 10 working days. So, divide 2304 by 2.5. In this case, the compensation will be an amount of 921.60 euros.
  • Secondly, let's test the method of salary maintained . Thus, you should have earned 1920 euros while working. However, on average, there are 21 working days in a month. However, in two weeks, there are 10 working days . Here is the calculation to ask: 1920 x (10/21) = 914.28 euros.

You will understand, in this case, the first calculation must be used, which is more advantageous for the employee . This is equivalent to 921.60 euros in paid vacation compensation.

End of contract: the compensatory allowance remains due to the worker

In some cases, you cannot not taking paid vacation . This happens in the event of breach of contract, before having been able to take a vacation (dismissal, resignation , breach of contract, etc.). But temporary workers or people on fixed-term contracts can also have the same problem. In this case, the employer pays a compensatory allowance , for paid leave that has not yet been taken. If necessary, a calculation similar to that which determines the remuneration of leave in normal times is used.

If you work in permanent contract , the compensatory indemnity takes into account all the days of paid leave that you have not taken advantage of. It also includes the notice period. And this, even if your employer exempted you from coming during these last days.

For employees on a fixed-term contract, the same thing, only unassigned paid leave enter into the calculation. They thus receive the compensatory allowance with their last salary. In this case, it is equivalent to 10% of gross income received during the reference period (from May 31 of year n-1 to June 1 of the current year).

And, with regard to temporary workers , this compensatory allowance remains included in the remuneration. Indeed, within the framework of these short-term contracts, taking paid leave seems impossible. Thus, you will receive a bonus, corresponding to 10% of your gross remuneration for this interim mission .

Finally, be aware that compensatory allowances for paid leave remain due, regardless of the reason for the termination of the employment contract . Moreover, in the event of death, the employer still remains liable for this amount. He must therefore pay it to the worker's heirs. And this, taking into account the days that the employee could not pose during his lifetime.

Source : Social Aids