Overtime: rates and calculation

Introduction

Overtime is one of the most frequently misunderstood topics in French labour law. Yet, incorrect calculation exposes the employer to URSSAF adjustments, labour court disputes and significant financial penalties. Whether you are an HR manager, SME owner or payroll manager, understanding precisely the overtime uplift rates and their calculation methods is essential. This article details the legal rules in force in 2026, practical formulas, the tax and social deduction regime, as well as the specific conventional aspects to monitor.

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Definition and triggering of overtime

What is an hour of overtime?

According to article L. 3121-28 of the French Labour Code, overtime refers to all hours of effective work performed beyond the legal weekly duration, fixed at 35 hours for full-time employees under the general scheme. This rule applies to civil weeks (Monday 0:00 to Sunday 24:00), unless a company agreement defines another reference period.

It is important to distinguish between:

• Actual overtime hours: genuinely performed beyond 35 hours, with the explicit or implicit agreement of the employer;

• Contractual overtime hours: provided for in the employment contract for employees whose weekly duration is set at 37 hours, 39 hours or 40 hours for example.

Annual overtime contingents

The legal contingent of overtime hours is set at 220 hours per year per employee (article L. 3121-30 of the French Labour Code), unless a more favourable collective agreement applies. Beyond this contingent, the employer must obtain the opinion of the social and economic committee (CSE) and grant a mandatory rest compensation (COR) of at least 50% for companies with 20 or fewer employees, and 100% for those with more than 20 employees.

Exceeding this contingent without respecting these obligations exposes the company to prosecution for concealed work. The Certyneo HR solution notably allows you to secure amendments related to schedule modifications and time-work modulation agreements.

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Overtime uplift rates in 2026

The reference legal rate

Article L. 3121-36 of the French Labour Code sets the legal overtime uplift rate at 25% for the first eight hours beyond the 35-hour weekly duration (i.e. from the 36th to the 43rd hour inclusive), and at 50% from the 44th hour onwards.

These rates apply by default in the absence of a collective agreement. They form a floor: a branch or company agreement may provide for higher rates, but never lower than 10% (absolute floor provided by law).

| Hours concerned | Legal uplift rate | |---|---| | 36th to 43rd hour | + 25% | | From the 44th hour onwards | + 50% | | In case of agreement (floor) | + 10% minimum |

Conventional rates: heightened vigilance

Many collective agreements provide for different rates. By way of example:

• Metallurgy (national agreement of 7 February 2022): 25% for the first 8 hours, 50% beyond;

• Construction: rates varying from 25% to 75% depending on hours and status (ETAM, workers);

• Non-food retail (derogatory agreement): 10% rate for hours between 35 and 39 hours per week.

It is therefore imperative to consult the applicable collective agreement (identifiable by IDCC code) before any calculation. Ignorance of the agreement cannot be invoked by the employer in the event of a dispute.

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Practical calculation methods

Basic formula for the uplifted hourly rate

The calculation starts with the gross basic hourly rate (THBB) of the employee. For a monthly salaried employee, the formula is:

THBB = Monthly gross salary ÷ (Monthly working hours duration)

The monthly reference duration is calculated as follows:

Monthly hours = (35 hours × 52 weeks) ÷ 12 = 151.67 hours/month

Concrete example: an employee receives a monthly gross salary of €2,200 for 35 hours per week.

• THBB = €2,200 ÷ 151.67 hours = €14.51/hour

• 25% uplift: 14.51 × 1.25 = €18.14/hour (from 36th to 43rd hour)

• 50% uplift: 14.51 × 1.50 = €21.77/hour (from 44th hour onwards)

Case of employees with hourly forfeit superior to 35 hours

For an employee whose contract provides for 39 hours per week, the 4 extra hours per week (36th, 37th, 38th, 39th hour) are called structural. They must appear on the payslip with their uplift. The basic monthly salary then includes these uplifted hours in the calculation base.

Annualised hours for 39 hours: (39 hours × 52) ÷ 12 = 169 hours/month

Of which 17.33 monthly overtime hours (169 – 151.67 = 17.33 hours/month at 25%).

Replacement of payment with compensatory rest

Article L. 3121-33 of the French Labour Code authorises, by collective agreement, the replacement of all or part of the payment of overtime hours (and their uplift) with a compensatory rest of replacement (RCR). This scheme is popular in sectors with high overtime volumes (construction, catering, industry), as it does not form part of the basis for calculating social contributions, unlike cash payment.

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Tax and social regime of overtime in 2026

The forfeit tax deduction for employers

Since the TEPA law (2007), overtime has benefited from an advantageous tax and social regime. In 2026, the provisions in force provide:

For the employee:

• Exemption from income tax up to a limit of €7,500 per year (article 81 quater of the CGI, renewed by the 2026 Finance Act);

• Reduction of employee contributions (employee share of old-age contributions): reduction rate set at 11.31% of gross remuneration corresponding to overtime and supplementary hours.

For the employer:

• Forfeit deduction of employer contributions of €1.50 per overtime hour in companies with fewer than 20 employees (deduction maintained in 2026);

• No forfeit deduction for companies with 20 or more employees since 2012.

Overtime and the payslip

The payslip must clearly show overtime hours, their number, their uplift rate and applicable exemptions. The absence or inaccuracy of these mentions constitutes an irregularity subject to a fine of €750 per payslip (article R. 3246-1 of the French Labour Code). To secure the documentary traceability of contracts containing an hourly forfeit clause, the use of electronic signature in business guarantees the enforceability of HR documents.

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Overtime and work-time modulation

Work-time adjustment over an extended reference period

The El Khomri law (2016) and Macron ordinances (2017) strengthened the possibility of adjusting working time over a period of up to three years by collective agreement (article L. 3121-44 of the French Labour Code). In this context, overtime is identified only at the end of the reference period, not week by week.

Two conditions apply:

• A company or branch agreement must provide for it explicitly;

• The triggering threshold is defined in the agreement (for example, 1,607 annual hours).

This configuration is particularly used in the tourism, health and agriculture sectors, where activity is cyclical. The document management of these agreements can be dematerialised and signed electronically — see the complete guide to electronic signature to understand the signature levels adapted to this type of document.

Forfeits in hours and days

Forfeit conventions in hours (over the week, month or year) allow the employer to globally remunerate an employee for a volume of hours including pre-identified overtime hours. These conventions must be provided for by a collective agreement and stipulated in the employment contract.

Forfeits in days (autonomous managers) escape hourly counting but remain subject to daily rest rules (11 hours) and weekly rest (35 consecutive hours). In the event of exceeding the number of forfeit days, additional rest days or supplementary remuneration are due. These forfeit amendments require written formalisation, which the Certyneo AI-powered contract generator can facilitate in compliance with legal requirements.

Legal framework applicable to overtime

The overtime regime is governed by a set of legislative and regulatory texts that must be mastered to ensure social compliance of the company.

French Labour Code (legislative and regulatory part):

• Article L. 3121-28: definition of overtime and triggering beyond the legal duration of 35 hours;

• Articles L. 3121-30 to L. 3121-32: annual overtime contingent, mandatory rest compensation (COR);

• Article L. 3121-33: possibility of replacing payment with compensatory rest of replacement (RCR) by collective agreement;

• Article L. 3121-36: legal uplift rates (25% and 50%), possibility of derogation by agreement with a 10% floor;

• Article L. 3121-44: work-time adjustment over multiple weeks by agreement;

• Article R. 3246-1: sanctions relating to mandatory payslip mentions.

French General Tax Code (CGI):

• Article 81 quater: exemption from income tax on overtime within the limit of €7,500 annually.

Law n° 2007-1223 of 21 August 2007 (TEPA law): foundation of the exemption and reduction of social contributions scheme on overtime, confirmed and renewed by successive finance acts.

Employer obligations: The employer is required to precisely count the effective working time of each employee (article L. 3171-2 of the French Labour Code) and to make this count available to the labour inspectorate. In the event of URSSAF audit, it is the employer's responsibility to prove that the hours declared are accurate. Failure to count presumes that the hours claimed by the employee are real.

Legal risks:

• URSSAF adjustment for incorrect application of reduction or exemption rates;

• Wage recovery in case of insufficient uplift, with a prescription period of 3 years for wage claims (article L. 3245-1 of the French Labour Code);

• Qualification as concealed work (article L. 8221-5 of the French Labour Code) in the event of deliberate failure to count, exposing to a penalty of 6 months' gross salary minimum;

• Damages in case of non-compliance with the contingent and absence of COR.

The retention of modulation agreements, contracts incorporating forfeit clauses and associated payslips in an unfalsifiable electronic format constitutes good compliance practice, in line with the requirements of article 1366 of the Civil Code relating to electronic writing.

Concrete use scenarios

Scenario 1 — Industrial SME with 45 employees with recurring overtime

An SME in the precision mechanics sector employs 45 operators and technicians. Each year, between September and January, the production load requires on average 6 overtime hours per week per employee. The company had previously applied a flat 25% rate to all hours, without distinguishing hours beyond the 43rd hour per week.

Following a URSSAF audit, the inspector identifies that hours worked beyond the 43rd hour should have been uplifted at 50%. The adjustment covers 3 years of payroll, representing approximately €38,000 in contributions and late payment penalties. By implementing hourly counting software and dematerialising schedule modification amendments via electronic signature, the company now secures the traceability of signed agreements and reduces its risk of adjustment.

Scenario 2 — Accounting firm with 18 employees

An accounting firm manages payroll for several dozen SME clients. During the tax period (March–June), the firm's employees perform between 8 and 12 hours of overtime per week. The firm concluded a company agreement providing for a derogatory rate of 10% for the first 8 hours and 25% beyond.

By implementing an annual hours system coupled with automatic amendment generation via an AI-powered contract generator, the firm reduces by 60% the administrative processing time for contractual modifications. Savings on the payroll related to the replacement with compensatory rest scheme represent approximately 12% of seasonal labour costs.

Scenario 3 — Home care services company with work-time adjustment

A home care services structure employing 90 care workers applies a modulation agreement over 12 months. In peak summer season, some employees exceed 45 hours per week, whilst in low season they work only 25 hours. At the end of the annual reference period, the count shows 180 overtime hours for 30% of employees.

The company had initially failed to calculate uplifts on the basis of hours worked in excess of the 43rd hour during peaks. After support from a specialised HR firm, it restructures its tracking system and dematerialises all work-time adjustment contracts. The use of the Certyneo HR solution allows it to centralise signatures and maintain a timestamped history of agreements, essential in the event of labour court dispute.

Conclusion

The calculation of overtime is based on precise rules: legal rates of 25% and 50%, an annual contingent of 220 hours, a tax exemption capped at €7,500, and a forfeit employer deduction in small businesses. Ignorance of these rules — particularly conventional rates — exposes the employer to costly adjustments and labour court disputes over 3 years of prescription. The dematerialisation of HR documents related to working time (amendments, modulation agreements, forfeits) is today an essential compliance lever.

Certyneo supports you in securing your HR documents through an eIDAS-compliant electronic signature solution, simple to deploy and adapted to SMEs and large groups alike. Discover our pricing and start free or test the ROI calculator to measure concrete gains for your organisation.