Understanding Allowance Types

A payee may be entitled to a variety of allowances, paid in addition to the regular salary. These allowances are in four main categories:

  • Allowances linked to a breach of contract (termination):

    • Compensation in lieu of paid holidays not yet taken.

    • Severance allowance.

    • End of fixed-term contract allowance.

    • Retirement allowance.

  • Transportation allowances:

    • Paris.

    • Provinces.

    • Mileage allowance.

Note: There are different allowance rates for people living in Paris and in the provinces. Motorists may also be entitled to a mileage allowance for driving to work.

  • Benefits in kind:

    • Meal benefit in kind.

    • Lodging benefit in kind.

    • Car benefit in kind.

    • Other benefits in kind.

  • Meal and travel allowances:

    • Meal/travel allowance.

    • Meal tickets.

Some allowances are subject to social contributions and taxes and some are not.