Key facts
- Premiums: without an agreement, 25% from the 36th to the 43rd hour, 50% beyond; an agreement may set a rate of at least 10% (Art. L.3121-33 and L.3121-36).
- Paid leave: since the judgment of 10 September 2025, where hours are counted weekly, days of leave taken in the week count towards the overtime threshold.
- Quota: 220 hours a year without an agreement; beyond it, mandatory rest in lieu of 50% (20 employees or fewer) or 100% (more than 20).
- SMIC: €12.02 gross per hour on 1 January 2026 (€1,823.03 a month), then €12.31 on 1 June 2026 (€1,867.02 a month for 35 hours).
- Exemptions: employee contributions reduced by up to 11.31%, income tax exemption up to €7,500 a year, employer deduction of €1.50 or €0.50 per hour.
- Monthly payroll return (DSN): due on the 5th of the following month (50 employees or more) or the 15th (fewer than 50); payslip copies kept for 5 years.
How do you calculate overtime pay in 2026?
Every hour worked beyond 35 hours in the week is overtime, paid with a premium or offset by equivalent rest; hours are counted by week (Art. L.3121-27 to L.3121-29). A company agreement or, failing that, a sector agreement sets the premium rate, which cannot be lower than 10% (Art. L.3121-33). Without an agreement, the statutory rates apply (Art. L.3121-36):
| Hours in the week | Premium |
|---|---|
| From the 36th to the 43rd hour (first 8 overtime hours) | 25% |
| From the 44th hour | 50% |
Example: an employee paid the SMIC of 1 June 2026 (€12.31 gross per hour) works 45 hours in the week. The 10 overtime hours are paid as follows: 8 hours × €12.31 × 1.25 = €123.10, then 2 hours × €12.31 × 1.50 = €36.93, i.e. €160.03 gross on top of the 35 hours.
The agreement may replace payment with equivalent compensatory rest; where there is no union delegate, the employer may decide this if the social and economic committee (CSE, the staff representative body) does not object (Art. L.3121-37). Overtime is paid with the month's salary; if the week straddles two months, it is paid with the following payroll.
Paid leave and sickness during the week
Since a published judgment of 10 September 2025 (No. 23-14.455), an employee whose hours are counted weekly and who is on paid leave for part of the week receives the premiums they would have earned had they worked the whole week. The employment chamber of the Cour de cassation, France's highest court for civil and criminal matters, extended the rule to two-week counting on 7 January 2026 (No. 24-19.410).
Example: an employee works 38 hours over 4 days and takes 1 day of paid leave, counted here as 7 hours. For the threshold, the week counts as 45 hours: the employee receives the premiums for 10 overtime hours (8 at 25%, 2 at 50%), against 3 hours before this reversal.
Another recent rule: where working time is organised over several weeks, sick leave during a high-activity period lowers the overtime threshold by the length of the absence, valued on the average weekly working time for the reference period (35 hours in the case decided), unless an agreement is more favourable (published judgment of 3 June 2026, No. 24-19.545).
220-hour overtime quota: when is mandatory rest in lieu due?
Beyond the annual quota, each overtime hour also gives the right to mandatory rest in lieu (contrepartie obligatoire en repos). Without an agreement, the quota is 220 hours per employee per year; hours offset by equivalent rest do not count towards it (Art. D.3121-24 and L.3121-30). Hours within the quota are worked after informing the CSE, hours beyond it after its opinion (Art. L.3121-33).
| Company headcount | Rest per hour beyond the quota |
|---|---|
| 20 employees or fewer | 50% |
| More than 20 employees | 100% |
- The right opens once 7 hours of rest have been earned; the rest is taken in full or half days within 2 months (Art. L.3121-38, D.3121-18 to D.3121-23).
- The employee requests it at least one week in advance; the employer replies within 7 days.
- The rest is paid as working time, and paid in cash if the contract ends.
- A document attached to the payslip informs the employee of the rest hours earned and, from 7 hours, that the right is open and must be used within 2 months (Art. D.3171-11).
Example: in a company with 30 employees, an employee reaches 230 overtime hours in the year. The 10 hours beyond the quota give 10 hours of rest, on top of their premium pay. In a company with 15 employees, it would be 5 hours of rest.
Part-time, night, Sunday and public holidays: which premiums apply?
The Labour Code sets premiums for part-time additional hours, certain Sundays and 1 May; for night work, it sets no rate, which comes from the company or collective agreement.
| Situation | Rule |
|---|---|
| Additional hours (part-time) | 10% up to one tenth of the contractual hours, 25% between one tenth and one third; cap at one tenth, raised to one third by agreement; an extended sector agreement may set a rate of at least 10% (Art. L.3123-8, L.3123-20, L.3123-21, L.3123-28 and L.3123-29) |
| Night worker (at least 3 night hours at least twice a week, or 270 hours over 12 consecutive months without an agreement) | Mandatory compensatory rest and, where applicable, pay compensation; 8 hours a day at most and 40 hours on average over 12 weeks, unless an exception applies (Art. L.3122-5 to L.3122-8 and L.3122-23) |
| “Mayor's Sundays” (retail, up to 12 a year) | At least double pay and equivalent compensatory rest (Art. L.3132-26 and L.3132-27) |
| Prefectoral exemption without an agreement (decision approved by staff referendum) | At least double pay and compensatory rest (Art. L.3132-25-3) |
| Public holiday not worked | No loss of pay after 3 months' service (Art. L.3133-3) |
| 1 May worked | An allowance equal to the salary, on top of it: double pay (Art. L.3133-6) |
The night period lasts at least 9 consecutive hours, includes midnight to 5 am and falls between 9 pm and 7 am; without an agreement, it runs from 9 pm to 6 am, except for certain activities (Art. L.3122-2 and L.3122-20). In tourist and commercial zones and in stations, a collective or local agreement sets the compensation for Sunday work, which relies on the employee's written consent (Art. L.3132-25-3 and L.3132-25-4). Public holidays are covered on our page Annual leave in France.
SMIC 2026: which amounts since 1 January and 1 June?
The SMIC changed twice in 2026: on 1 January (Decree No. 2025-1228 of 17 December 2025), then on 1 June (Order of 22 May 2026). The June rise of 2.41% is an automatic increase triggered by inflation of at least 2% recorded on 13 May 2026.
| Item | From 1 January 2026 | From 1 June 2026 |
|---|---|---|
| Gross hourly SMIC | €12.02 | €12.31 |
| Gross monthly SMIC (35 hours) | €1,823.03 | €1,867.02 (about €1,477.93 net) |
| Guaranteed minimum (minimum garanti) | €4.25 | €4.35 |
| Gross hourly SMIC in Mayotte | €9.33 | €9.56 |
Example: an employee paid €12.10 gross per hour in May 2026 must be paid at least €12.31 for hours worked from 1 June 2026. Also check your collective agreement's pay scales: failing to pay the SMIC or the agreed minimum exposes the employer to an administrative fine of up to €4,000 per worker (Art. L.8115-1 and L.8115-3).
Tax-free and contribution-exempt overtime: what are the 2026 limits?
Overtime is exempt from income tax up to €7,500 a year, reduces employee contributions by up to 11.31% and gives the employer a flat-rate deduction per hour.
| Scheme | Amount | Points to watch |
|---|---|---|
| Reduction of employee contributions | Up to 11.31% | Overtime and additional hours; staff type code (CTP) 003 in the DSN |
| Flat-rate employer deduction | €1.50 per hour (fewer than 20 employees), €0.50 (20 employees or more); €10.50 or €3.50 per rest day given up by an employee on forfait jours (an annual arrangement counted in days) | Not on part-time additional hours; CTP 004 |
| Income tax exemption | €7,500 a year | Overtime and additional hours (Article 81 quater of the General Tax Code) |
| Single degressive general reduction (RGDU) of employer contributions, since 1 January 2026 | Pay below 3 times the SMIC of 1 January 2026, i.e. 2.9293 times the SMIC of 1 June 2026 (outside Mayotte) | The formula includes overtime and additional hours |
The employer deduction follows the version of Article L.241-18-1 of the Social Security Code introduced by the 2026 Social Security Financing Act, which applies to periods of employment from 1 January 2026: it sets no maximum headcount. Example: 10 overtime hours in the month give a €15 deduction in a company with 15 employees, and €5 in a company with 25 employees. A company that reaches 20 employees nevertheless keeps the €1.50 rate for the following 5 years.
This relief is withdrawn if working time rules are not respected or if the hours replace an element of salary. In an inspection by URSSAF (the body that collects social security contributions), keep the working time records or, failing that, an annual summary per employee of overtime hours and their rates.
Payslip and DSN: what must be shown, and what are the deadlines?
The payslip separates hours paid at the normal rate from hours paid at a premium, with their rates (Art. R.3243-1). It also shows, among other items, the type and volume of any fixed working time arrangement, the net social amount (montant net social), the dates and pay for paid leave in the period, total exemptions and income tax withheld at source.
- Electronic payslip: allowed unless the employee objects; the employee is informed one month before the first issue or on hiring, and the payslip remains available for 50 years or until the employee turns 75 (Art. L.3243-2, D.3243-7 and D.3243-8).
- Payslip copies: kept by the employer for 5 years (Art. L.3243-4).
- Payslip annexes: compensatory rest and rest in lieu (Art. D.3171-11), monthly summary for employees outside the collective schedule (Art. D.3171-12), total hours at the end of a multi-week period (Art. D.3171-13). See our page Mandatory time tracking in France.
| Headcount | DSN for month M | Payment of contributions |
|---|---|---|
| Fewer than 50 employees | 15th of M+1 | 15th of M+1 |
| 50 employees or more | 5th of M+1 | 5th of M+1 if salaries are paid in M, 15th if paid in M+1 |
The deadline moves to the next working day if it falls on a public holiday, and net-entreprises sets it at noon. Sick leave, early returns and contract terminations are reported within 5 working days. A late DSN costs €60 per employee per month of delay; a payslip not issued, a fine of up to €450 per payslip. A claim for back pay can cover 3 years (Art. L.3245-1), and knowingly showing fewer hours than were worked is concealed employment.
Common mistakes
- Leaving paid leave days out of the 35-hour threshold: since 10 September 2025, this deprives the employee of premiums and exposes you to back-pay claims.
- Keeping January hourly rates after 1 June 2026: the SMIC rose by 2.41% during the year.
- Applying the employer deduction to part-time additional hours: URSSAF excludes them, and only the employee reduction applies.
- Paying a flat overtime amount without real records: in a dispute, the employer must produce the hours, and a fixed-hours arrangement requires a written individual agreement.
- Forgetting mandatory rest in lieu beyond the quota, or letting the 2-month window pass without reminding the employee.
- Leaving the premium rate off the payslip, or not adjusting the following month for a week that straddles two months.
Your checklist
- Add up each week the actual working time and paid leave hours, then apply the statutory thresholds or those of the agreement.
- Keep each employee's annual quota counter, inform the CSE and obtain its opinion beyond the quota.
- Open mandatory rest in lieu once 7 hours are earned and have it taken within 2 months.
- Update hourly rates on 1 June 2026 and compare collective agreement pay scales with the SMIC.
- Apply the employee reduction (CTP 003) and the employer deduction (CTP 004), and track the €7,500 tax-free total per employee.
- Show hours by rate on the payslip and attach the rest and cumulative documents.
- File the DSN by the 5th or the 15th of the following month and report sick leave and terminations within 5 working days.
- Keep payslip copies for 5 years and guarantee access to electronic payslips for 50 years or until the employee turns 75.
How Luxapps helps
FXP and MySafeBox carry recorded time through to payroll. In France, they are configured for the country's rules and connected by API to your payroll software, which produces the payslip.
Real-time clocking in on the web and mobile; overtime and variances calculated from clock-ins, then exported to payroll.
FXP and MySafeBoxMonthly grid entered by the employer (clock-ins, variances, overtime, bonuses, expense claims, benefits in kind), checked and approved by the fiduciary or payroll team, then closed and sent to the payroll software.
FXP and MySafeBoxApproved absences (leave, remote work, sickness) feed the month's payroll variables without re-keying.
FXP and MySafeBoxPayslips encrypted with AES-256, 10-year archiving built in, and access through the employee portal on the web and mobile.
MySafeBoxFrequently asked questions
Without an agreement, the first 8 hours beyond 35 hours a week (36th to 43rd) carry a 25% premium and the following hours 50%. A company or sector agreement may set another rate of at least 10%. At the SMIC of 1 June 2026, an hour at 25% is worth about €15.39 gross and an hour at 50% about €18.47 gross.
Since 1 June 2026, the gross hourly SMIC is €12.31, or €1,867.02 gross a month for 35 hours a week. From 1 January to 31 May 2026, it was €12.02 per hour, or €1,823.03 a month. The guaranteed minimum rose from €4.25 to €4.35.
Overtime and additional hours are exempt from income tax up to €7,500 a year, an amount unchanged in 2026. On top of this come a reduction of employee contributions of up to 11.31% and, for the employer, a deduction of €1.50 per hour below 20 employees, or €0.50 from 20 employees.
The DSN (déclaration sociale nominative, the monthly payroll return) is due on the 5th of the following month in companies with 50 employees or more, and on the 15th in the others. If the deadline falls on a public holiday, it moves to the next working day. A late filing costs €60 per employee per month of delay.
Yes. With weekly hours counting, an employee on paid leave for part of the week receives the premiums they would have earned had they worked the whole week. The Cour de cassation extended the rule to two-week counting on 7 January 2026.
The payslip shows the number of hours paid at the normal rate and the number of premium hours, with their rates. It also shows the net social amount and total exemptions, and an attached document summarises the compensatory rest earned. The employer keeps a copy for 5 years.
Official sources
- Cour de cassation, employment chamber, 10 September 2025, No. 23-14.455 (paid leave and overtime)
- Cour de cassation, employment chamber, 7 January 2026, No. 24-19.410 (two-week counting)
- Decree No. 2025-1228 of 17 December 2025, SMIC from 1 January 2026 (Légifrance, in French)
- Order of 22 May 2026, SMIC from 1 June 2026 (Légifrance, in French)
- General Tax Code, Article 81 quater (Légifrance, in French)
- Social Security Code, Article L.241-18-1, 2026 Financing Act version (Légifrance, in French)
- URSSAF, Reduction of employee contributions on overtime (in French)
- URSSAF, Flat-rate employer deduction (updated 9 January 2026, in French)
- URSSAF, Single degressive general reduction (updated 13 July 2026, in French)
- net-entreprises, Déclaration sociale nominative (in French)
This guide sets out the general rules in force on 5 October 2026. It is not legal advice for your situation (collective agreement, sector, employee status).