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.