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.