French Severance Pay in 2026: How to Calculate Your Rights When Laid Off Getting laid off is stressful enough without having to decode France's complex severance pay rules. This guide explains how French severance pay (indemnité de licenciement) is calculated and what you are entitled to in 2026. Who Is Entitled to Severance Pay? In France, severance pay applies when an employee is dismissed for economic reasons (licenciement économique) or for personal reasons unrelated to serious misconduct (licenciement pour cause réelle et sérieuse). Key eligibility conditions: Minimum 8 months of continuous service with the same employer The dismissal must not be for gross misconduct (faute grave) or serious misconduct (faute lourde) Fixed-term contracts (CDD) ending normally do not qualify The Legal Minimum Calculation The legal minimum severance pay is calculated as follows: For the first 10 years of service: 1/4 of monthly reference salary × number of years worked Beyond 10 years: 1/3 of monthly reference salary ×…