Are there mandatory allowances in France?

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Yes. Employees based in France who are working from home permanently are entitled to allowances associated with home working:

  • Prime de sujétion also known as hardship allowance: This is to compensate employees because they are not working from an office. This allowance is subject to social contributions.
  • Forfait télétravail also known as home working fixed expenses: This is to compensate employees for the fixed expenses (rent, taxes & insurances & utilities) associated with using a private space for work. This allowance is exempt from social contributions up to €50/month.

For both allowances, the minimum total amount an employee is expected to receive is €50/month. Typically, Clients choose to split this amount to €25 per month for each allowance. These allowances are mandatory and also included in the employee's contract.

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