Payroll and Benefits Guide France
Last updated: May 09, 2023
Contributions
Employer
Employer Payroll Contributions
|
13.00% or 7.00% |
Health, Maternity, Disability, Death (rate varies based on income) |
|
0.30% |
Autonomy Solidarity Contribution |
|
8.55% |
Old Age Insurance (ceiling of 3,665.50 EUR – 43,992 EUR annually) |
|
1.90% |
Old-age insurance |
|
Variable |
Accidents at work |
|
3.45% – 5.25% |
Family Benefits (rate varies based on income) |
|
4.20% |
Unemployment (ceiling of 13,712 EUR) |
|
0.15% |
AGS (Wage Guarantee Insurance) |
|
6.01% |
Supplementary Pension & CEG – up to EUR3,666 taxable income per month |
|
14.57% |
Supplementary Pension & CEG – from EUR3,666 to EUR27,424 taxable income per month |
|
31.56% – 54.11% |
Total Employment Cost *Additional employer contributions might be applied in conjunction with the employee’s level e.g. Cadre |
Employee
Employee Payroll Contributions
|
6.90% |
Old Age Insurance (ceiling of 3,666 EUR taxable income per month) |
|
0.40% |
Old-age insurance |
|
9.20% |
Social Security Surcharge |
|
4.01% |
Supplementary Pension & CEG up to EUR3,666 taxable income per month |
|
9.72% |
Supplementary Pension & CEG from EUR3,666 to EUR27,424 taxable income per month |
|
30.23% |
Total Employee Cost |
Employee
Employee Income Tax
|
0.00% |
Up to 10,777 EUR |
|
11.00% |
10,778 EUR – 27,478 EUR |
|
30.00% |
27,479 EUR – 78,570 EUR |
|
41.00% |
78,571 EUR – 168,994 EUR |
|
45.00% |
More than 168,994 EUR |
Note: Employers must pay 50% of the cost of season tickets for the entire journey between the worker usual place of residence and the place of work using public transport services. This applies to part time employees as well.
*The above rates serve as a broad guideline. Actual rates charged will differ depending on the applicable CBA.
Employer taxes
Employee taxes
Minimum Wage
General
The National Minimum Wage in France is 1,709.30 EUR with the hourly rate of 11.27 EUR.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
The payroll cycle in France is generally a monthly cycle, with wages paid by the last working day of each month.
13th Salary
The 13th Salary in France is customary and generally paid at the end of the year.
Working Hours
General
Standard working hours within French Law are 35 hours a week at all companies, and the working day may not exceed 10 hours.
Overtime
All work above the standard 35 hours a week is to be paid as overtime and is regulated by collective agreements and contracts, generally calculated as follows:
Additional 25.00% an hour for each of the first eight hours of overtime (from the 36th to the 43rd hour, inclusive)
Additional 50.00% for each hour after that
Working Week
Monday-Friday
Leave
Paid Time Off
The regulations regarding paid leave in France are set in the Labor code as a minimum of five weeks’ paid holiday per year, following completion of one months’ probation, in addition to public holidays. However, it is common practice for additional leave days to be included in the collective bargaining agreements.
Public Holidays
There are 13 public holidays.
Sick Days
Sickness reimbursements are made by the Social Security office to all employees from the fourth day of absence due to sickness. Additional compensation from the employer is common and is detailed within the collective/company agreements.
With at least three months’ service, all monthly paid employees are entitled to continued payment in proportion to their regular salary for up to 90 days.
All employees must provide a medical certificate within 48 hours of the sickness to the employer (un avis d’arrêt de travai) so that the employer can subsequently provide a salary certificate to the Social Ssecurity, which in turn enables the employee to receive Social Security benefits for up to 3 years.
Maternity Leave
Expectant mothers are entitled to up to 16 weeks maternity leave – six weeks before birth and ten weeks after birth. Maternity leave can be extended to 26 weeks when expecting a third child, extending further to 34 weeks for multiple births (twins) and 46 weeks when expecting triplets or more. The maternity leave can be extended even further should the expectant mother be unwell, with an additional two weeks before the birth and four weeks after.
Maternity pay is made by the Social Security to entitled employees. To be entitled, the employee must have been affiliated with the Social Security for a minimum of 10 months before the due date, have taken at least eight weeks maternity leave, and have worked at least 150 hours in the 90 days preceding the leave.
The amount paid each day is based on the average salary received three months before the leave and paid every two weeks.
PAID MATERNITY LEAVE (DAYS)
Paternity Leave
In France, paternity leave (congé paternité) spans 25 calendar days. It commences after the initial 3 working days following birth, which are designated as birth leave and are paid by the employer. Subsequent to this birth leave period, fathers are required to take 4 calendar days of leave.
The remaining 21 calendar days can be divided, but they must be used within 6 months of the birth. Workers have the flexibility to use these 21 days either consecutively or in two separate periods, each lasting a minimum of 5 days.
In the event of multiple births, an additional 7 days of leave are provided. All leave following the birth leave is covered by social security. To qualify for this leave, fathers must have been enrolled with social security for at least 10 months. Notification of the intended leave to the employer should be provided, either in writing or orally, one month prior to taking it.
Social security coverage is calculated based on the average daily salary over the last three months, with a cap of €88.84 per day (for the year 2023).
Parental Leave
Parental leave (congé parental d’éducation) is available to all employees with at least one year of service at the time of the child’s birth, upon employer’s approval. This leave is unpaid and entitles employees to up to one year of parental leave or a change to part-time working hours (if possible, within the business infrastructure), together with a monthly allowance (Allocation parentale d’enfant) for employees with more than one child and more than two years’ service.
In addition, should a child become ill, the employee can request a form of parental leave of between 3 and 5 days, dependent upon the number of children the parent has and the child’s age. Should the child suffer from a severe illness, accident, or disability, the parent can request special specific family care leave of up to 310 days to provide continued parental care.
Other Leave
In France, in the event of the death of an immediate family member, an employee is entitled to three days’ leave.
Employees are entitled to 6 weeks of unpaid leave before adopting a child if they must travel to adopt a child.
Termination
Termination Process
In France, it is not allowed to dismiss someone due to COVID-19.
There are several different ways that an employment contract can be ended. In addition to redundancy or resignation, in France, there is an option to negotiate departure through mutual agreement (Rupture Conventionelle). All these ways require specific procedures that the employer must follow.
Regardless of the type of job contract, when it comes to ending employment, the employer has to provide a certificate stating the position held (certificat de travail), a document for the Pôle emploi, allowing the person to claim unemployment benefits, and a document stating everything the employer needs to pay the employee (solde de tout compte).
Termination via Mutual Agreement
It is very common to dismiss workers using a Mutual Termination Agreement (MTA), which can reduce the risks of legal claims. A shorter notice period and different exit payment terms to that set in law can also be agreed in this process and indemnity amounts should take into account notice and severance.
The starting point for termination payment is normally 3 salaries however it is common for workers to settle at 6-9 salaries.
The Mutual Termination Agreement process takes roughly 45 days. Once the worker has signed the agreement they have 15 days to change their mind. Once all terms have been settled, the Mutual Termination Agreement must be submitted to the French Labour department.
Notice Period
Notice periods within France are as follows:
- During the first six months of service, the notice period is that set by an applicable collective agreement or employment contract.
- 1 months’ notice is required for employees leaving after the first six months up to two years of service.
- 2 months’ notice is required for employees leaving after completing two years’ service employment.
- 3 months’ notice is required for executives.
Severance Pay
Severance pay in France depends on several factors, including the terms in the employment contract/collective bargaining agreement, the position/role of the employee, the reason for termination, and the goodwill between the company and the employee, all of which can affect the amount due substantially. It is common practice for the payment to be based on a monthly figure calculated based on the highest figure from the monthly average across the past year, general average monthly earning figure, or a third of the payment of the past three months.
Probation Period
Probation periods in France generally differ based on the criteria of employee and their seniority; blue-collar employees must work two months’ probation, technicians and supervisors three months, and management four months.
During the probation period, the employment contract may be freely terminated by the employee or by the employer, without the need to state reasons, and without compensation (unless otherwise provided for in the agreement). The procedural rules for dismissal do not apply.
However, the employer and, in some cases, the employee must give a notice. In Articles L. 1221-19 to L. 1221-24 of the Labour Code, the employee must be given at least 24 hours for less than 8 days of presence, 48 hours between 8 days and 1 month of presence, 2 weeks after 1 month’s presence and 1 month after 3 months’ presence.
Common Benefits
General
VISA
VISA
In France, there are two main types of visas, a short stay (visa de court séjour) which is required for visits of 90 days or less where the employer applies to the French Ministry of Labour, the DIRECCTE (Direction regionale des enterprises, de la concurrence et de la consummation, du travail et de l’emploi), or a convention d’accueil and the authorization then goes to the French embassy.
If the employee is from the EU/EEA or Switzerland, they do not need a work permit.
A long stay work visa (visa de long séjour) is also a residence permit. The work contract is sent to the local division of the French Ministry of Labour for approval. Once approved, it is sent to the Office Francais de l’Immigration et de l’Integration (OFII) for secondary approval. Once this is approved, the contract confirmation is sent directly to the French embassy in the employee’s home country. After 18 months in a long-stay residence permit , applications can be made to bring family members to France.
In addition, applications for a four-year renewable visa can be made for a passeport talent which is aimed at executives, independent professionals, or employee-level people who have the potential to make a significant contribution to the French economy, especially in intellectual, scientific, cultural, sporting, or humanitarian fields.
Britons who have been full-time residents in France since before December 31st 2020 must be in possession of a carte de séjour residency card by January 1st, 2022. From this date the card can be requested legally in a range of situations.
VAT
General
The standard rate of VAT in France is 20.00%.
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The National Minimum Wage in France is now 1,603 EUR gross or 1,269 EUR net per month.
Questions & Answers
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Payroll and Benefits Guide
in France
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Day | Date | Holiday | Notes |
|---|---|---|---|
| Sunday | Jan-1 | New Year's Day | |
| Friday | Apr-7 | Good Friday | Alsace and Moselle only |
| Monday | Apr-10 | Easter Monday | |
| Monday | May-1 | Labor Day | |
| Monday | May-8 | World War II Victory Day | |
| Thursday | May-18 | Ascension Day | |
| Sunday | May-28 | Whit Sunday | |
| Monday | May-29 | Whit Monday | |
| Friday | Jul-14 | Bastille Day | |
| Friday | Feb-24 | Assumption of Mary | |
| Wednesday | Jan-11 | All Saints' Day | |
| Saturday | Nov-11 | Armistice Day | |
| Friday | Feb-24 | Christmas Day | |
| Friday | Feb-24 | St Stephen’s Day | Alsace and Moselle only |
Am I, as the employer, responsible for paying my employees during maternity leave? If so, does the French government contribute any part of it?
The French social security office pays your employee during her maternity leave. But for her to qualify, she must be registered with the social security office at least 10 months before the birth and worked at least 150 hours during the 90 days before the leave begins. The amount she receives will be equal to the average pay she received during the three months before birth.
1. If there is an agreement between the employee and employer, vacation days can be transferred to the following year – as long as the agreement aligns with the collective agreement in place, which can set limits on the number of days that transfer and whether they transfer at all. The exception is RTT days, which do not transfer.
2. Typically, extended sick leave can go for six months or even a year. It is also possible to go longer, depending on the scenario. Social security does not cover the first three days.
3. By law, an employer is required to track employee hours/days because there are mandatory maximums.
Am I, as the employer, opt-out for ensuring my employee’s salary at 100% during his sickness period, and receive the IJ from the insurance authority?
If yes, how can I do this?
Hi Beth,
An employee on sick leave with at least a year of seniority at a workplace receives the IJ from the health insurance fund and compensation from the employer which combined total 90% of the employee’s salary.
What is the best practice for pro-rating salary for employee in France? Here is the example: employee has received a rate increase in the mid of the month, first half of the month employee worked under previous rate and second under new rate. Thank you!
Hi Olga, you would need to find the daily rate for both salaries then calculate how many days were worked based on each rate.
Hi Emily,
Can you give an example of daily rate calculation for the month of October where there are 31 calendar days and 21 work days?
Hello, what is the standard Burden (%) for example for the cleaning services, reception services in France? Thank you in advance
Hi Anna, you can find this information at the top of the page under employer and employee contributions.
In France is there a customary annual pay increase? Say 3% increase etc?
Hi Megan, no law requires this salary increase, however, some collective bargaining agreements might include this as a requirement.
In France are there additional vacation days for moving?
It depends on the collective bargaining agreement in place e.g. some agreements outline 1 day for moving, others outline a limit of one day per moving every 2 years, and some don’t provide any provision for moving.
Hello there, what are the final pay and PILON laws/guidelines for France?
Employees may be paid in lieu of notice. Alternatively, an employee can be paid their usual salary for the duration of the notice period even if not performed. An employee with at least 8 months of seniority is entitled to a severance of 1/4 of their average monthly salary per year of seniority for the first 10 years and 1/3 of their average monthly salary per year of seniority for each following year, subject to more agreeable provisions in the applicable CBA, which are frequent.
How RTT really work? Who has the right to receive them and how are these calculated?
Certain categories of employees (i.e. mainly executives) “ Cadre”, according to the Collective Bargaining Agreement (CBA), if any, or a company agreement, the parties may agree that the employee will work on the basis of a maximum number of days per year (218 or less). The advantage of this system is that employees may work ‘long days’ without generating overtime. However, to balance such long days and as a result of the maximum number of working days per year, the employees are granted additional rest days (often referred to as ‘RTT’ days. RTT means “Reduction du temps de travail” – the number of days depends on the CBA in place usually between 10-14 days per calendar year.
What is the statutory benefits for france?
In France, statutory benefits for employees include:
Paid annual leave: Employees are entitled to a minimum of 5 weeks paid vacation per year.
Sick leave: Employees are entitled to receive a portion of their salary while on sick leave.
Maternity/paternity leave: Mothers are entitled to 16 weeks of paid maternity leave, while fathers are entitled to 11 days of paid paternity leave.
Retirement benefits: Employees are entitled to a pension through the French social security system, which provides a minimum guaranteed income in retirement.
Unemployment benefits: Employees who become unemployed are eligible for unemployment benefits, which provide a portion of their previous salary while they look for new work.
Health insurance: Employees are entitled to access France’s public health insurance system, which provides coverage for a wide range of medical services.
It is important to note that the exact terms of these benefits may vary based on factors such as the employee’s job, salary, and length of service.