How does a vacation bonus work in France?

Many companies in France pay their workers a bonus known as the "13th month.”

The purpose of the 13th month's salary is to help French workers pay their taxes. Depending on the company, it can be disbursed annually in December or January, or at intervals, with some being paid in June and the remainder at the end of the year. Since 13th month bonuses are not required by law, there may be discretion as to when and how to disburse this bonus. That said, 13th month salary payments are included as part of the employee’s total gross salary and are taxed accordingly.

• Beneficiaries: All active employees with the company on May 31 of the current year.
• Amount: The amount should be at least 10% of the total paid vacation indemnities recorded as of May 31st.
• Bonuses or commissions paid for achieving an employee's targets or objectives cannot be considered as vacation premiums.
• The Vacation premium is paid to employees in June every year.