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French administration or public services: Which term of payment to choose?

The terms of payment are defined in the public sector code, article 98.

As of July 1st 2010, terms of payments are:

  • 30 days for French administrations and public services other than the ones having an industrial or commercial nature and other than the ones mentioned in 3°;
  • For regional authorities and local public services other than the ones mentioned in 3°. The term of payment that was 45 days is now:
    • a) 40 days from January 1, 2009;
    • b) 35 days from January 1, 2010;
    • c) 30 days from July 1, 2010.
  • 50 days for public health services and army health services.

An overdue payment opens rights to claim statutory interests from the day following the due date. See decree 2002-232 and a detailed documents.

In April 30, 2008 the terms were:

  • 30 days for French administrations and public services other than the ones having and an industrial or commercial nature and other than the ones mentioned in 3°;
  • 45 days for regional authorities and local public services other than the ones mentioned in 3°;
  • 50 days for public health services and army health services.

In January 1st 2009, the terms were:

  • 30 days for French administrations and public services other than the ones having and an industrial or commercial nature and other than the ones mentioned in 3°;
  • 40 days for regional authorities and local public services other than the ones mentioned in 3°;
  • 50 days for public health services and army health services.

In January 1st 2010, the terms were:

  • 30 days for French administrations and public services other than the ones having and an industrial or commercial nature and other than the ones mentioned in 3°;
  • 35 days for regional authorities and local public services other than the ones mentioned in 3°;
  • 50 days for public health services and army health services.

January 1st 2013: modifications

The decree 2013-269 of March 29, 2013 sets a 40 euros basic allowance due by public administrations that do not respect the terms of payment. It is a compensation for collection charges. They are due in addition to penalty fees.

DGFIP PDF: MEMORANDUM REGARDING LOCAL AND HEALTH PUBLIC SERVICES PLAN AGAINST LATE PAYMENT DOR PUBLIC ORDERS

The government has a tool to compute the default interest on public contracts: https://www.service-public.fr/simulateur/calcul/interets-moratoires