Are sick leave benefits taxable?

Yes, in principle. Sickness, accident, or maternity benefits are taxable regardless of their source: Social Security, employer, or private insurance provider. Several exceptions exist: benefits paid for an illness requiring prolonged treatment and particularly expensive care (long-term illness), work-related accident or occupational disease benefits (taxable at a rate of 50% of the standard tax rate), additional maternity benefits granted by the CPAM (French Primary Health Insurance Fund), benefits for victims of asbestos and radiation-induced diseases, and benefits from optional private insurance contracts supplementing Social Security.

This page deals with private sector employees and, for one line, civil servants. It does not cover self-employed workers, non-residents, CSG and CRDS rates, therapeutic part-time work, withholding tax, the list of conditions covered by exemptions, or the calculation of the tax itself.

The principle: the origin makes no difference.

The information sheet on service-public.gouv.fr concerning the taxation of these allowances establishes the rule: they are taxable regardless of their source. It specifies that they must be declared along with wages. It cites articles 79 to 81 quater of the General Tax Code.

The BOFiP (tax administration doctrine) goes in the same direction on two points:

• Daily allowances paid by social security funds are taxable; ;
• The sum paid by the employer to maintain the salary during the leave constitutes a salary.

The relevant BOFiP document, BOI-RSA-CHAMP-20-30-20, has been in effect since March 2, 2016, and has not been updated since. It is an old document: read it with this date in mind.

Table: What compensation, what treatment?

Source: service-public.gouv.fr, sheet F3152, verified on 15/04/2026.

For civil servants, the BOFiP indicates that the full salary maintained during sick leave is taxable in its entirety.

For workplace accidents, the service-public.gouv.fr website states "Exempt up to 50 %," the BOFiP (Official Bulletin of Public Finances) refers to taxation at a rate of 50 %, and the income tax return guide instructs taxpayers to declare 50 %. All three formulas describe the same half: half the amount is exempt, the other half is taxable. The rest of this page states "taxable up to 50 %.".

Workplace accidents and occupational diseases: only half

For daily allowances paid in the event of a work-related accident or occupational disease, and for the temporary incapacity allowance that may follow, form F3152 indicates "Exempt at 50 %": half of the amount is exempt, the other half is taxable. The 2026 income tax guide classifies the exempt portion of 50 % among the amounts not to be declared.

The supplement paid by the employer to maintain the salary is shown separately in the table on form F3152 (line dedicated to illness): it is taxable.

Long-term illness: exemption

Compensation paid for an illness requiring prolonged treatment and particularly expensive care is exempt from social security contributions. The BOFiP (Official Bulletin of Public Finances) classifies it as one of the conditions mentioned in Article D160-4 of the Social Security Code. This page does not list these conditions; this information should be verified in the text of the article or with your local social security office.

Insurance: optional or mandatory, the difference matters

This is the point that most changes the outcome for a leader or executive.

• Optional membership contract. Compensation received under a voluntary supplementary health insurance contract is exempt from income tax. The BOFiP (Official Bulletin of Public Finances) specifies the situation: the employee subscribes or joins on a voluntary basis, and the premiums are not tax-deductible. The compensation is therefore excluded from income tax.
• Mandatory scheme within the company. Supplementary benefits paid by a supplementary insurance provider under a mandatory scheme are taxable. According to the French tax authorities (BOFiP), amounts received in addition to daily allowances (IJ) under a mandatory supplementary scheme are subject to income tax in the name of the beneficiary.

Two contracts that pay the same amount at the same time can therefore have opposite tax treatments. The determining factor is not the amount itself, but the nature of the contract. The pages consulted do not address intermediate situations (contracts with deductible premiums, self-employed business owners). The rule depends on your specific contract and your status, and must be examined on a case-by-case basis.

How to declare

Taxable allowances are declared along with wages on the annual income tax return. The 2026 Income Tax Guide (for 2025 income) requires you to declare:

• daily sickness benefits paid by the funds, as well as daily maternity and paternity benefits; ;
• 50 % of the amount of daily allowances for work-related accidents or occupational diseases, and 50 % of the temporary incapacity allowance; ;
• supplementary allowances paid by the employer or on its behalf.

It includes among the sums not to be declared the exempt portion of work-related accident daily allowances, compensation for illnesses requiring prolonged treatment and particularly expensive care, compensation for victims of asbestos, radiation-induced diseases, and benefits from an optional insurance scheme.

The pre-filled declaration includes daily sickness, maternity, or paternity benefits reported by the organizations that paid them. The brochure instructs you to correct the amount of wages and salaries if it is incorrect, in boxes 1AJ (declarant 1) and 1BJ (declarant 2). Therefore, check what the pre-filled form shows for a year of leave, especially if part of the amounts are tax-exempt.

Calendar: The information sheet indicates that the 2027 tax return (for 2026 income) will begin in April 2027. Any benefits received in 2026 must be declared at that time. The boxes and instructions above are from the 2026 tax return booklet (for 2025 income): they should be double-checked in the 2027 tax return booklet (for 2026 income).

Taxable does not mean only levy

Daily allowances are also subject to CSG and CRDS social security contributions at specific rates (see fact sheet F3053, verified on 01/06/2026). The BOFiP (Official Bulletin of Public Finances) specifies that maternity and paternity daily allowances are subject to social security contributions due as replacement income. The pages consulted do not provide any rates: this page does not state any.

Numerical example (fictitious profile)

Situation. Marc is a salaried manager. In 2026, following a workplace accident, he receives €6,000 in daily sickness benefits from Social Security, €2,000 in supplementary benefits from his employer (maintenance of salary), and €3,000 from an optional individual insurance policy, the premiums for which he pays without deducting them. Sophie is also a salaried employee. She receives €8,000 in daily sickness benefits for an illness requiring prolonged treatment and particularly expensive care, and €1,500 in supplementary benefits from her employer.

Hypotheses. The amounts received are hypothetical. It is assumed that the employer's supplement is taxable at 100% (%), as stipulated in form F3152 for continued salary payments in case of illness. However, the consulted pages do not explicitly address this supplement for a work-related accident or a long-term illness (ALD); this point is an assumption within the context of this example. Finally, the rules in the 2026 brochure (for 2025 income) are applied to 2026 income, and these rules should be verified in the 2027 brochure.

Issue. What portion of these sums is included in the income tax return?

Strategy. Apply to each line the treatment of the table: 50 % for the IJ of work accident, 0 % for the optional provident fund and for the IJ in ALD, 100 % for the employer supplement (assumption above).

Result.

These profiles are fictitious. The amounts received are hypothetical; the amounts to be declared are based on the rules in the table and the assumption about the employer's supplement. The calculation only shows the amount to be declared: the resulting tax depends on your tax rate, your other income, and social security contributions, which are not addressed here. This illustrates a mechanism and does not predict the outcome for your specific situation.

What changes depending on your situation

• The nature of the stop : ordinary illness, long-term illness, work accident or occupational disease, maternity, paternity or adoption.
• The origin of each sum Social security, employer, pension fund.
• The nature of the insurance contract : optional membership or mandatory scheme within the company, and processing of premiums.
• Your status : private sector employee, civil servant, manager, self-employed worker (not covered here).
• Your tax residence The situation of non-residents is not addressed here.
• The pre-filled amount in your tax return, to be compared with your statements.

The rule depends on your situation. No results are guaranteed.