Income Tax – Taxable Wages and Other Employment Income

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Your Situation

This guide applies if:

  • You earn a regular salary

  • You receive overtime pay

  • You do not receive tips

  • You have no professional expenses to deduct

  • You receive no benefits in kind or in cash

  • You do not receive employee savings or bonuses

  • You have not received sick leave benefits

  • You receive no social or family allowances

  • You did not receive a severance payment

Basic Salary

Your base salary refers to the standard compensation paid by your employer.

For tax purposes, you are considered an employee if:

  • You are employed under a work contract

  • You work under a relationship of subordination or dependency (e.g. certain professional statuses)

  • You hold a specific status recognized as employment, such as a journalist with a press card

In all these cases, your salary is subject to income tax.

Special Cases

Some employment income may be taxed differently:

  • Income earned by young workers

  • Apprentice wages

  • Salaries paid to childminders or foster carers

ℹ️ Note: If you were awarded the medal of honor for work, any accompanying bonus is tax-free if it’s less than your monthly salary.

You may also receive a value-sharing bonus (prime de partage de la valeur), which is taxable.

Overtime and Compensatory Days Worked (RTT)

Overtime Pay

  • Overtime income must be declared.

  • It is exempt from income tax up to €7,500 per year.

  • Any amount above this threshold is taxable.

These exempt amounts are now usually pre-filled in your annual tax return.
If not, you must report them manually under “Exempt Overtime”.

If you work for multiple employers and your total overtime exceeds the €7,500 limit, you must declare the surplus with your regular salary.

Working on RTT Days

With your employer’s agreement, you may waive your compensatory rest days (RTT) and choose to work them instead.

Income earned from working these days:

  • Is treated the same as overtime, both for social contributions and taxes

  • Benefits from:

    • Exemption from employee social contributions

    • Income tax exemption, within the same €7,500 annual limit (combined with overtime)

This system is in effect until December 31, 2026.

Note: Working on RTT days entitles you to additional pay, at least equivalent to the overtime rate applied to your first additional hour.