What is the overtime pay rate in france?

Published on
November 15, 2023
What is the overtime pay rate in france?

What is the overtime pay rate in france?

Overtime refers to hours worked beyond the legal 35-hour workweek. These hours must be paid at an increased rate, defined either by law or collective agreements. Employers can also replace this pay increase with equivalent compensatory rest.

Managing schedules and adding new shifts is complex, so many companies use overtime management software to simplify scheduling and ensure compliance.

Calculating the overtime pay rate

The legal workweek in France is 35 hours. Any work beyond this is considered overtime and must be compensated at a higher rate.

Overtime rates are often defined by sector-specific collective agreements. If no agreement applies, the legal rates apply:

  • First 8 overtime hours: +25% pay
  • Beyond 8 overtime hours: +50% pay
  • Overtime on a rest day: +50% pay
  • Beyond 7 overtime hours on a rest day: +100% pay

Example calculation

If a full-time employee works 5 extra hours, each hour is paid at their regular hourly rate plus 25%.

Overtime work must also respect legal limits:

  • 10 hours per day maximum
  • 48 hours per week maximum
  • 44 hours per week on average over a 12-week period

Replacing overtime pay with compensatory rest

In some cases, financial compensation can be replaced by rest time, either fully or partially. This option is often set by a collective agreement or an internal company agreement.

Any overtime performed beyond the annual legal limit of 220 hours automatically grants the employee additional compensatory rest, even if the overtime was already paid.

The calculation is:

  • 1 overtime hour at +25% = 1 hour 15 minutes of rest
  • 1 overtime hour at +50% = 1 hour 30 minutes of rest

Recording overtime on payslips

Employers must record all overtime hours separately on payslips, indicating both regular hours and overtime hours with their applicable rates.

Since January 1, 2019, overtime also benefits from reduced social charges and income tax exemptions, up to a limit of €7,500 per year.

If overtime is not correctly listed on the payslip, employees lose these tax benefits.

Purpose of the overtime pay rate

Overtime rates exist to fairly compensate employees who work beyond standard hours. These legal rates, along with any sector-specific adjustments, ensure equitable pay while respecting employee rights.

In some cases, compensatory rest provides an alternative to direct pay, helping balance workload while controlling costs. Companies must carefully document all overtime to comply with legal requirements and protect employee entitlements.