Overview of Seniority Allowances

A seniority allowance (FR. Prime d’ancienneté) is an allowance paid to an employee that varies depending on the seniority band they are in. This band is based on the collective agreement or company rules and according to their seniority within the enterprise.

The seniority calculation is performed according to the statutory French rules. This means the seniority of an employee is assessed based on the hire date (FR: ancienneté dans la société), or on the Enterprise Hire Date (FR: ancienneté dans le groupe). The seniority date can also be overridden at the employee level. During the payroll run, the employee’s seniority is assessed as of the end of the payroll period.

The following types of seniority allowances can be configured:

• Percentage of a balance, typically (but not always) paid as a recurring amount.
• Flat amount payment as spot bonus.