How do overtime hours work in France?
Overtime allows businesses to meet their needs beyond the legal 35-hour working week. It is subject to specific rules regarding remuneration, compensatory time off and social and tax exemptions.
In a nutshell
- Overtime allows for working time to be adapted quickly to meet business needs, beyond the standard 35-hour working week.
- It entitles employees to increased pay or, in some cases, equivalent compensatory time off.
- Overtime hours qualify for flat-rate deductions from employer social security contributions.
- Overtime hours are exempt from employee social security contributions and income tax.
What are the rules regarding overtime?
Overtime is defined as any hour worked beyond the legal 35-hour working week for a full-time employee.
It entitles the employee to increased pay or, in some cases, equivalent compensatory time off.
Although overtime permits employees to exceed the legal working hours, it must comply with maximum working time limits and the rules related to daily and weekly rest periods.
Which employees does it apply to?
Overtime applies to full-time employees.
However, the following are not subject to the same rules and are not affected:
- Senior executives.
- Employees on an annual work agreement based on days worked.
- Employees on an annual work agreement based on hours worked.
Part-time employees do not work overtime, but rather additional hours when they exceed the hours stipulated in their contract.
How to implement overtime?
Who decides on overtime?
Overtime is worked at the employer’s request or with their agreement, even if implicit. It must be clearly shown on the payslip.
How is overtime calculated?
In principle, overtime is calculated per calendar week within an annual quota.
Its completion must comply with:
- Maximum working hours.
- Daily and weekly rest periods.
What is the annual overtime quota?
Overtime is limited by a threshold called the “annual overtime quota”:
- It is set by a business or establishment collective agreement, or failing that, by a sector-based agreement.
- In the absence of an agreement, it is 220 hours per year per employee.
When the quota is exceeded, the employer must grant mandatory compensatory time off (COR) and consult with employee representatives (from the Social and Economic Committee, where one exists) before requiring any hours worked beyond the quota.
The compensatory time off is in addition to overtime pay or compensatory time off. Collective bargaining agreements may stipulate its implementation within the quota limits.
In the absence of a collective agreement, the compensatory time off is set at:
- 50% of overtime hours in firms with up to 20 employees.
- 100% in firms with more than 20 employees.
In practice
An employee in a firm with fewer than 20 employees who has worked four hours of overtime beyond the quota will receive compensatory time off equal to 50%, i.e., two hours of compensatory time off.
Certain hours are not included in this quota, notably:
- Overtime hours that entitle the employee to compensatory time off.
- Hours related to urgent work.
Hours worked for the solidarity day.
How is overtime paid?
Overtime is paid at a higher rate and, in some cases, entitles employees to time off in lieu. The rate of this higher rate depends on the existence of a collective agreement.
In the presence of a collective agreement
The rate is set by the agreement (company or extended industry-wide) and cannot be less than 10%.
In the absence of an agreement
In the absence of collective bargaining agreements, overtime is paid at a higher rate:
- 25% for the first eight hours (from the 36th to the 43rd hour).
- 50% thereafter (from the 44th hour onwards).
Compensatory time off
The higher rate of overtime pay can be replaced, in whole or in part, by days off. This time off is equivalent to the higher rate of pay. It is provided for by collective agreement or, failing that, by decision of the employer with the agreement of the Social and Economic Committee.
What are the social security and tax exemptions?
For the employer
The employer benefits from a flat-rate deduction of employer social security contributions:
- €1.50 per hour in firms with fewer than 20 employees.
- €0.50 per hour in firms with 20 to 250 employees.
For further information, visit the URSSAF page dedicated to employer exemptions.
For the employee
Overtime (and additional hours for part-time work) entitles the employee to:
- An exemption from employee social security contributions.
- An exemption from income tax, up to an annual limit of €7,500 net.
For further information, visit the URSSAF page dedicated to employee exemptions.
How do compensatory hours for part-time employment work?
A part-time employee who works more than the hours stipulated in their contract works additional hours.
These are limited:
- Up to 1/10th of the hours stipulated in the contract.
- Up to 1/3rd if a collective agreement provides for it.
These additional hours are paid at the following rates:
- 10% for hours worked up to 1/10th of the hours stipulated in the contract.
- 25% for each hour worked beyond this 1/10th limit (and up to the 1/3rd limit stipulated in the collective agreement).