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Capital City
Paris
Currency
Euro
(
€
)
Timezone
GMT +1
Payroll Frequency
Monthly
Tax Year
1 January - 31 December
Employer Tax
31.56% - 54.11%
Languages
French
Capital City
Paris
Currency
Euro
(
€
)
Timezone
GMT +1
Payroll Frequency
Monthly
Tax Year
1 January - 31 December
Employer Tax
31.56% - 54.11%
Languages
French
Recognised as one of the world's most advanced nations, France is ranked as the seventh-largest global economy in 2020 and the second-largest within the European Union after Germany. The French tech industry presents significant opportunities for expansion on a global scale.
Remote workers in France receive a monthly working indemnity of 100 EUR as acknowledgement of the effort of integrating their professional lives into their homes. Moreover, the government extends various incentives to those planning to establish businesses in the country.
The World Bank's 'Doing Business Report' for 2019 highlights France as one of the most business-friendly nations, attributing this to its cultural diversity and openness to different cultures and lifestyles. The country also possesses a strong infrastructure, providing access to high-speed Internet and dependable phone services.
France places a high value on work-life balance, making it an attractive destination for individuals seeking a healthy equilibrium between professional and personal life. The implementation of the "Right to Disconnect" law in 2017 underscores this commitment by prohibiting employees from sending or responding to emails beyond specific hours.
Businesses can only operate smoothly in France if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in France below, to avoid any compliance issues.
France follows European Directive 2019/1152, requiring employers to communicate key employment terms in writing. Employment contracts, whether permanent or fixed-term, must be in French, regardless of the employee's language proficiency. The following formalities must be followed when employing in France:
We can help you get a new employee started in France quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
Employers in France must adhere to strict labor laws that regulate working hours, overtime, and employee rights. The standard workweek is 35 hours, with a maximum daily limit of 10 hours and a weekly cap of 48 hours. Industry-specific exceptions and managerial roles may follow different rules, often outlined in collective agreements. Employees are entitled to minimum rest periods, including 11 consecutive hours daily and 35 consecutive hours weekly. Night and weekend work are subject to additional regulations, often requiring special authorization or enhanced compensation.
Overtime is tightly controlled, with a legal limit of 220 hours per year per employee. Employers must compensate overtime at 125% of the regular wage for the first eight additional hours (36th to 43rd hour) and 150% beyond that. Non-compliance with working hour and overtime regulations can lead to legal penalties, fines, and potential criminal charges. To maintain compliance, employers should carefully track employee hours, adhere to rest requirements, and ensure proper overtime compensation.
As of 2025, France’s minimum wage, known as the Salaire Minimum Interprofessionnel de Croissance (SMIC), is set at €11.88 per hour, equating to a gross monthly salary of €1,801.80 for full-time employees working a standard 35-hour workweek.
The net monthly wage, after deductions, is approximately €1,426.30. The SMIC applies universally, including to expatriates, ensuring equal pay across the workforce. However, exceptions exist for certain groups, such as apprentices and young workers, who may receive a reduced percentage of the minimum wage, and interns, who receive a financial compensation instead of a salary.
The French minimum wage is reviewed annually on January 1st and may be adjusted mid-year if inflation increases by more than 2%. The wage is indexed to inflation and economic conditions to protect workers' purchasing power. Additionally, collective bargaining agreements in some industries may establish higher minimum wages based on skill level and job responsibilities. Employers in France must stay updated on these changes to ensure compliance with labor laws and fair compensation for their workforce.
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1 January - 31 December is the 12-month accounting period that businesses in France use for financial and tax reporting purposes.
The payroll cycle in France is usually monthly, with employees being paid by the end of the month.
The minimum wage for employees in France is typically 11.75 EUR per hour, amounting to ~1,645.58 EUR per month for a typical 35 hour work week.
In France, it is customary to give 13th-month salary payments at the end of the year.
Employer payroll contributions are generally estimated at an additional 31.56% - 54.11% on top of the employee salary in France.
In France , the typical estimation for employee payroll contributions cost is around 30.23%.
Income tax is computed using progressive rates in France, reaching up to 45%. Factors like household status and the number of children can impact the overall tax rates.
In France, pension eligibility requires at least 10 years of residence and work in the country, with 40-43 years of employment for the maximum pension. Supplementary and private pension plans are also available. The retirement pension, administered by French Social Security, can be claimed at age 62, offering between 37.5% and 50% of the average annual income over a 25-year career.
Employers in France must navigate a complex payroll system that includes income tax withholding, social security contributions, and other levies, each with specific rates and deadlines. Non-compliance can lead to significant penalties and strained employee relations. Implementing payroll management software can streamline these processes, ensuring accurate calculations and timely submissions, thereby helping employers consolidate payroll data and maintain compliance with French regulations.
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In France, work permits and visas are essential for employers hiring non-EU/EEA nationals. The process involves submitting applications, paying relevant fees, and ensuring eligibility criteria are met. Key visa types for foreign workers include the Talent Passport Visa for skilled workers, the Intra-Company Transfer Visa for internal employee transfers, the Temporary Worker Visa for short-term employment, and the EU Blue Card for highly skilled individuals. Employers must comply with French labor regulations and may need to demonstrate that no suitable candidates are available from the EU labor market in some cases. Sponsoring a visa requires submitting a work contract, qualifications, and in some instances, additional documentation or labor market tests.
The annual leave entitlement in France is 25 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
France observes 11 public holidays mandated by law, which are separate from the minimum holiday entitlement in the French Labor Code. The Alsace region and the Moselle department observe two extra days. Employers usually grant these public holidays as days off, and collective bargaining agreements specify that employees must take time off on these days:
As per France's labour code, employees are entitled to a minimum of five weeks of paid vacation annually, granted after completing one month of probation, in addition to public holidays. However, it is customary to allocate extra leave days through collective bargaining agreements.
Pregnant employees in France receive 16 weeks of maternity leave, extendable for more children or health reasons. Maternity pay, provided by Social Security, requires six months of affiliation before the due date, with 150 hours of work in the 90 days preceding leave. The pay is based on the average salary from three months before the leave, capped at 3,428 EUR, and is distributed every two weeks.
In France, paternity leave lasts 25 days, with the first 3 days after birth paid by the employer. Fathers must take 4 days, and the remaining 21 days can be used within 6 months, either consecutively or in two periods of at least 5 days. Multiple births add 7 extra days covered by social security. Qualification requires 10 months of social security enrolment and one month's notice. Payment is based on the average daily salary over the last 3 months, capped at 88.84 EUR per day.
Employees with over three months of service and 150 hours worked are entitled to unlimited paid sick leave based on their regular salary. They must provide a medical certificate to the employer within 48 hours to obtain a Social Security salary certificate. The first three days serve as a qualifying period, and from the fourth day onward, Social Security covers the pay. Additional compensation from the employer is detailed in collective or company agreements.
Employees with at least one year of service at their child's birth can request up to one year of unpaid parental leave or switch to part-time (pro-rata) with employer approval. Monthly allowances are provided for those with over two years of service and multiple children. A 3-5 day parental leave is granted for a child's illness, extendable until the child turns three.
If an employee experiences the loss of an immediate family member, they are entitled to three days of leave.
In the case of adopting a child that involves travel, employees can take six weeks of unpaid leave.
France has comprehensive leave policies designed to protect employees' rights while ensuring workplace productivity. Full-time employees are entitled to a minimum of 30 working days of paid annual leave per year, accrued at 2.5 days per month worked. This entitlement is separate from the 11 national public holidays, which may be granted as additional time off depending on company policies. Employers must ensure compliance with these regulations and allow employees to take their accrued leave within the legal timeframe.
In addition to annual leave, France mandates various other types of leave, including sick leave, which requires a medical certificate and is partially compensated by Social Security. Maternity leave lasts 16 weeks, with potential extensions for multiple children, while paternity leave allows for 25 days off. Employees can also take parental leave for up to three years, either full-time or part-time. Special leave options such as family solidarity leave and sabbaticals are also available under specific conditions. To ensure compliance with French labor laws, employers must implement clear leave policies, track employee leave balances accurately, and promote a healthy work-life balance by encouraging employees to take their entitled leave.
In France, employers are legally required to provide several key benefits to employees, including health insurance, pension plans, life and disability insurance, paid annual leave, maternity and paternity leave, sick leave, work injury insurance, unemployment insurance, public transportation reimbursement, and regular medical examinations.
Beyond these mandatory provisions, many employers offer supplemental benefits to attract and retain top talent. These may include supplementary health insurance, additional retirement plans, enhanced life and disability coverage, extra paid leave, extended parental leave, supplementary sick leave benefits, comprehensive accident insurance, income protection plans, company cars or transportation allowances, and wellness programs.
It's essential for employers to understand and comply with these legal requirements while considering additional benefits to support employee well-being and remain competitive in the job market.
In France, employment termination is strictly regulated, requiring a "real and serious cause" for dismissal. Employers can terminate employees on personal grounds, such as misconduct or professional incompetence, or economic grounds, including financial difficulties and company restructuring. The termination process involves a mandatory preliminary meeting, a decision period, and a formal notification of dismissal. Notice periods range from one to three months based on the employee’s tenure, except in cases of gross misconduct where no notice is required.
Severance pay is mandatory for employees with at least eight months of service, calculated based on tenure and salary. Additional compensation may be granted under collective bargaining agreements. French labor laws provide strong protections against unfair dismissal, allowing employees to challenge terminations in labor courts, which may result in reinstatement or financial compensation. Employers must also provide final pay settlements and essential termination documents, ensuring compliance with legal obligations.
Employment agreements can be concluded through redundancy, resignation, or mutual agreement negotiation. However, termination due to COVID-19 is prohibited in France. To formally end the employment, employers must provide the employee with the following documents:
In France, notice periods, including post-probationary periods, extend based on the duration of employment:
Mandatory severance payments are required for dismissals, contract breaches, or mutual termination in France. The amount is typically calculated based on the highest figure among the monthly average over the past year, the general monthly average, or one-third of the payment over the last three months. It varies depending on the employee's seniority:
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
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As of January 1, 2025, France's minimum wage rates are:
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