Example: If I have to receive a legal compensation of 25,000 euros and receive a total of 45,000 euros, I know that I have received a super-legal compensation of 20,000 euros (45,000 – 25,000). On the other hand, the fraction exceeding the legal minimum (i.e. the extra-legal indemnity) may be taxable. Super-statutory remuneration is remuneration paid to the employee that is higher than that required by law. It is negotiated by the employee with the employer. We can speak of supra-statutory compensation in several cases: in the case of termination, contractual termination or transaction. The employee who receives a supra-legal indemnity must know that he will subsequently suffer a deferral of the payment of his unemployment benefit, also called “deferred indemnity” or a loss of earnings. This payment deferral can last up to a maximum of 150 days. It is also reduced to a maximum of 75 days in the context of the termination of the employment contract for economic reasons. The employee who receives a supra-legal indemnity must expect not to immediately receive his unemployment benefit from Pôle Emploi. The duration of this deferral corresponds to the amount of the supra-statutory indemnity divided by 90. Supra-statutory compensation = amount of compensation paid – minimum amount of compensation This additional compensation is called supra-statutory compensation 🙋 ♂️.
Specific carry-over (number of days added to the 7 calendar days) = total amount of suprastatutory compensation received / 94.4 Are you considering a contractual termination and wondering what your remuneration is? Have you heard of supralegal compensation and want to understand what it means? We explain the most important lines. The amount of the supra-statutory indemnity corresponds to the amount of the statutory indemnity deducted from the total remuneration received by the employee (remuneration of the employee – legal indemnity = supra-legal indemnity). In this example, anything over €16,000.00 is an extra-legal compensation. It`s €14,000.00. It is not true that the only additional compensation, i.e. the €5,000.00 in the example, is often considered supa-legal. The first is that in our example, the amount that Pôle Emploi takes into account to calculate the waiting period (deferred indemnity) is the sum of € 14,000.00 (and not only € 5,000). Therefore, in our example, a deferral of 146 days, practically the upper limit of 5 months). For Pôle Emploi, a supra-statutory allowance is eligible. 🤷 ♂️ You have the choice between two tax regimes: The payment of a supra-statutory indemnity has a particular impact on: Finally, the employee subject to a non-competition obligation may also receive an interjudicial indemnity. The employer must pay the employee financial compensation upon his departure if he has been subject to a non-competition obligation during the performance of his employment contract. For the taxation of the surplus, you can opt for the quotient system, regardless of its amount.
If you opt for the quotient system, enter the taxable portion of your severance pay in box 0XX of your return. The extra-legal indemnity is treated as a salary. For this reason, it is both subject to social security contributions and taxable. This is a direct consequence that the employee must take into account when negotiating this type of remuneration with his employer. It should not be forgotten that the higher the supralegal compensation, the higher the taxes and contributions. 💡 If you received remuneration (e.g. paid pay or a public holiday) at the time of termination of your employment contract, this waiting period may be extended (referred to as “paid leave with deferred pay” and “specific carry-over”).