At the same gross salary, a fixed-term contract (CDD) and a permanent contract (CDI) do not cost the employer quite the same, and do not open quite the same rights to the employee. The gaps are narrower than people assume — the bulk of contributions is common to both contracts — but they exist, and they sit on a few specific lines. Here is which ones, and what they amount to in euros.
What is strictly identical
Let us start with the most important point, because it is the one that surprises most: the vast majority of contributions make no difference at all between a fixed-term and a permanent contract. Health insurance, capped and uncapped old-age insurance, family allowances, unemployment insurance, the social dialogue contribution, CSG and CRDS all apply at the same rates and on the same bases.
The same holds for the AGIRC-ARRCO supplementary pension. The band 1 and band 2 rates, the general balance contribution (CEG) and the technical balance contribution (CET) are identical for an employee on a fixed-term contract and one on a permanent contract. Contrary to a widespread belief, a fixed-term employee does not contribute less towards their supplementary pension, and does not accrue fewer points at equal pay.
In other words: at equal gross pay, the net salary before tax is the same on a fixed-term and a permanent contract. For a gross salary of €3,500 in a company with 50 or more employees, our simulators give €729.41 in employee contributions and a net before tax of €2,770.59 — whether the contract is fixed-term or permanent. The difference lies entirely on the employer's side.
The CPF-CDD contribution, borne by the employer
The clearest difference comes down to one specific contribution: the contribution towards funding the personal training account of fixed-term employees, usually called CPF-CDD. It is due at a rate of 1% of pay for employees on fixed-term contracts, and it is borne entirely by the employer.
The logic is straightforward: employees on short contracts change employer more often and find it harder to access training. This contribution tops up their personal training account.
It never appears among employee contributions and therefore does not reduce the fixed-term employee's net pay. It does, however, raise the cost of the contract for the company. Taking our example again: for a gross salary of €3,500, the total employer cost goes from €4,795.91 on a permanent contract to €4,830.91 on a fixed-term one — exactly €35.00 more, the 1% CPF-CDD.
Some fixed-term contracts are exempt, notably apprenticeship contracts, professional training contracts, and contracts concluded with a young person during their school or university holidays. The exact list of exemptions is published by URSSAF and should be checked case by case, as it changes over time.
The end-of-contract premium, which is not a contribution
The second gap, often mistaken for a social charge, is not one: the end-of-contract indemnity, known as the precarity premium. Paid to the employee when a fixed-term contract ends without continuing into a permanent one, it amounts in principle to 10% of total gross pay received during the contract.
The distinction matters. It is an element of pay, subject to contributions like the rest of the salary, not an additional contribution. On a six-month fixed-term contract at €3,500 gross per month, it represents roughly €2,100 gross paid at the end of the contract — an amount on a completely different scale from the €35 monthly CPF-CDD. It is by far the main extra cost of a fixed-term contract.
A collective agreement may provide for a different rate, sometimes 6% in exchange for privileged access to training. Check the agreement applicable to your sector.
When the precarity premium is not due
The end-of-contract indemnity has several exceptions. In particular, it is not due when:
- the employee turns down a permanent contract offered on the same position, with at least equivalent pay;
- the working relationship continues under a permanent contract after the fixed-term one ends;
- the contract is terminated early at the employee's initiative, or for serious misconduct;
- it is a seasonal contract, an apprenticeship contract, or a contract concluded with a young person during their holidays.
These rules carry important nuances depending on the situation. Before concluding that a premium is or is not due, consult the relevant page on service-public.fr or your payroll department.
What changes beyond contributions
Choosing between a permanent and a fixed-term contract is not just a matter of contribution rates. Several differences weigh more heavily in practice on the employee's situation:
- The trial period follows different durations, calculated in days per week of contract for a fixed-term contract.
- Early termination of a fixed-term contract is possible only in limited cases: agreement between the parties, serious misconduct, force majeure, unfitness for work, or being hired on a permanent contract.
- Access to housing and credit remains markedly harder with a fixed-term contract, an often decisive factor.
- Use of fixed-term contracts is tightly regulated: it must match a ground set out in the Labour Code and cannot permanently fill a standing position.
In summary
On the monthly payslip, the difference between a fixed-term and a permanent contract is modest and concerns the employer alone: a 1% CPF-CDD contribution, or €35 on a gross salary of €3,500. The employee receives exactly the same net pay. The real extra cost of a fixed-term contract appears at its end, with the 10% end-of-contract indemnity, and in the legal constraints governing its use.