france | Image | Playroll | Employer of Record | international payroll

France

Introduction
 

General overview & country facts, as well as labour regulations.
Employer Contributions
 

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
 

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
 

All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.

COUNTRY PLAYBOOK

France
Everything you need to know about payroll, benefits & hiring top talent in France

Currency

Euro (EUR) or CFP Franc (XPF)

Salary payment frequency

Monthly 

Capital

Paris

Time Zone

GMT +1:00

Official Languages

French

Is English spoken?

Yes
France | Global Employment

Quick Links

france | Image | Playroll | Employer of Record | international payroll

Introduction

General Overview & Economic Facts
  • France, officially known as the French Republic, is a transcontinental country as it occupies space both in Western Europe and overseas regions and territories. France is made up of 18 integral regions, 5 of which are not located in Western Europe
  • France  covers 643, 801 square kilometers (248 573 sq mi) and has a population of around 67 million people
  • France is a highly developed country. France has the 7th largest economy by nominal GDP (2020) and 9th largest economy by PPP (2019). France ranks 26th on the Human Development Index (2019)
    Why Employ In France?
    • The main contributor to the French economy is their service sector. The service sector in France makes up 78.8% of its GDP
    • 11.88% of France is between the ages of 15-24 years and 36.83% is between the ages of 55-64. France has a more mature demographic. This means hiring more skilled, experienced, and knowledgeable individuals to your organization
    Overview Of The Labour Law
    • Employer-employee relationships in France are governed by the French Labour Code. The French Labour Code is complex and comprehensive. There is little negotiating power as a result
    • There are also Collective Bargaining Agreements between employers and trade unions. In the event of conflict between the French Labour Code, Collective Bargaining Agreements or the individual employment contract, the terms most favorable to the employee will apply
    • By law, any worker in France can join a trade union 
    Fun Country Facts
    • France is the most visited country in the world
    • France produces over 1,500 types of cheeses
    • The French eat 25,000 tons of snails each year
    Why Use Playroll Services For France?
    • Employing in France requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in France
    • With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
    • We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
    employer contributions | Image | Playroll | Employer of Record | international payroll

    Employer Contributions

    These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.

    Unemployment Insurance Fund
    Calculated on a maximum monthly income of EUR 13,712.00

    4.05%

    Old Age Insurance (Pillar I: State Pension)

    Old-age Insurance (with an upper limit). Calculated on a maximum monthly salary of EUR 3,428.00
    8.55%

    Old-age Insurance (with no upper limit). Calculated on monthly income
    1.90%

    APEC Contribution
    For executive employees only “Cadre”

    Calculated on a maximum monthly salary of EUR 13,712.00
    0.036%

    Supplementary Pension Contribution

    Calculated on income

    Bracket 1 – including CEG

    Calculated on a maximum monthly income of EUR 3,428.00

    Ordinary contribution
    4.72%

    CEG (overall balance contribution)
    1.29%

    Bracket 2 – including CEG

    Calculated on a minimum monthly income of EUR 3,428.00 and a maximum salary of EUR 27,424.00

    Ordinary contribution
    12.95%

    CEG (overall balance contribution)
    1.62%

    Health Insurance
    Health, Maternity, Disabiity, Death
    Calculated on monhtly income

    Public Heath Insurance

    Earning between EUR 0.00 to EUR 3,973.68
    7.00%

    Earning EUR 3,979.69 or more
    13.00%

    Private Health Insurance

    EUR 21.25

    CET - Technical Balancing Contribution

    Calculated on income
    0.21%

    Training Tax
    Calculated on gross annual payroll

    Employing less than 11 people
    0.55%

    Employing 11 or more people
    1.00%

    Apprenticeship Tax

    Calculated on gross annual payroll

    Everywhere except in Alsace-Moselle
    0.68%

    Alsace-Moselle
    0.44%

    Labor- Management Relations Contribution

    Calculated on monthly income

    0.016%

    Family Benefits

    Calculated on monhtly income

    Earning EUR 0.00 – EUR 5,563.15
    3.45%

    Earning EUR 5,563.00 or more
    5.25%

    Work Accident Insurance

    0.77%

    Wage Guarantee Insurance (AGS)
    Calculated on a maximum monthly salary of EUR 13,712.00

    0.15%

    Labour Insurance
    Called contribution ADESATT

    0.02%

    National Housing Assistance Fund
    (FNAL)
    Calculated on income

    Fewer that 50 employees

    Calculated on a maximum salary of EUR 3,428.00 per month
    0.10%

    50 employees or more

    Calculated on monthly income
    0.50%

    Autonomy Solidarity Contribution

    Called Contribution Solidarite Autonomie (CSA). Calculated on monthly income

    0.30%

    Group Life Insurance Premium

    Calculated on basic annual salary

    Tranch 1

    Calculated on a maximum salary of EUR 3428.00 per annum
    1.50%

    Tranch 2

    Calculated on a minimum salary of EUR 3428.00 and a maximum salary of EUR 27,424.00 per annum
    1.105%

    employee contributions | Image | Playroll | Employer of Record | international payroll

    Employee Contributions

    These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.

    Social Security Surcharge

    Called Contribution Sociale Généralisée (CSG). Calculated on 98.25% of monthly income

    9.20%

    Social Security Debt Reimbursement Contribution

    Called Contribution Pour Le Remboursement De La Dette Sociale (CRDS). Calculated on 98.25% of monthly income

    0.50%

    Old Age Insurance (Pillar I: State Pension)

    Old-age Insurance (with an upper limit). Calculated on maximum salary on EUR 3,428.00
    6.90%

    Old-age Insurance (with no upper limit). Calculated on monthly income
    0.40%

    Supplementary Pension Contribution
    Calculated on a maximum salary of EUR 3,428.00

    Bracket 1

    Ordinary contribution
    3.15%

    CEG (overall balance contribution)
    0.86%

    Bracket 2

    Ordinary contribution. Calculated on a minimum salary of EUR 3,428.00 and a maximum salary of EUR 27,424
    8.64%

    CEG (overall balance contribution). Calculated on a minimum salary of EUR 3,428.00 and a maximum salary of EUR 27,424
    1.08%

    APEC Contribution

    For executive employees only (“Cadre”)

    Calculated on a maximum salary of EUR 13,712.00
    0.024%

    CET (Technical Balancing Contribution)

    0.14%

    Group Life Insurance Premium

    Calculated on basic annual salary

    Tranch 1
    Calculated on a maximum salary of EUR 3428.00 per annum
    1.50% 

    Tranch 2
    Calculated on a minimum salary of EUR 3428.00 and a maximum of EUR 27,424 per annum.
    1.015%

    Health Insurance
    Health, Maternity, Disability, Death

    Public Heath Insurance

    Earning between EUR 0.00 to EUR 3,973.68
    7.00%

    Earning EUR 3,979.69 or more
    13.00%

    Private Health Insurance

    EUR 21.25

    Income Tax

    Income Tax is ‘Pay As You Earn’
    Calculated on taxable income

    Income bracket per annum

    0.00 – 10,225.00
    0.00%

    10,225.00 – 26,070.00
    (0.11 X T) less (EUR1,109.24 x N)

    26,070.00 – 74,545.00
    (0.30 x T) less (EUR5,994.14 x N)

    74,545.00 – 160,366.00
    (0.41 x T) less (EUR14,080.90 x N)

    160,366.00 or more
    (0.45 x T) less (EUR20,405.78 x N)

    Surtax
    Calculated on taxable income
    Income bracket (per annum):

    Single Person

    3.00%
    250,000.00-500,000.00

    4.00%
    500,000.00 and above

    Married Person

    3.00%
    500,000.00-1,000,000.00

    4.00%
    1,000,000.00 and above

    employment terms | Image | Playroll | Employer of Record | international payroll

    Employment Terms

    Website Page 5 Getting Started icon 2 | Image | Playroll | Employer of Record | international payroll

    General

    Minimum Wage
    • EUR 1589,47 per month
    Working Hours
    • Maximum of 35 hours per week
    • Meal interval is 20 minutes for 6-9 hours worked & 45 minutes for 9 or more hours worked.
    • Typical working hours are 08h00 to 18h00 Monday to Friday, which includes a 2-hour lunch internal
    Overtime
    • Maximum of 13 overtime hours per week
    Notice Period
    • Employed between 0 and 8 days- 24 hours’ notice
    • Employed between 9 days and 1 month- 48 hours’ notice
    • Employed between 1 and 3 months- 2 weeks’ notice
    • Employed between 3 months and 2 years- 1 months’ notice
    • Employed for 2 or more years- 2 months’ notice
    Severance Pay
    • Employed between 0 and 10 years (senior employee)- 25% of the gross monthly salary multiplied by years of seniority
    • Employed for 11 or more years (senior employee)- 33.33% of the gross monthly salary multiplied by years of seniority
    • Employed for 8 or more months (normal employee)- The greater amount of:

    (i) the monthly average of the employees salary for the last 12 months of employment,

    (ii) average monthly earnings of all months preceeding dismissal, or

    (iii) 1/3 of the employees last 3 months worth of salaries

    Probation Period
    • Blue collar employees and clerks – 2 months
    • Technicians and supervisors – 3 months
    • Managers/executives – 4 months
    Bonus
    • There is no statutory bonus
    • It is common for employees to receive a 13th-month bonus at the end of December
    • Collective Bargaining Agreements may mandate a bonus 
    Public Holidays

    Public holidays 2022

    • January 1st – New Year
    • April 15th – Good Friday
    • April 18th – Easter Monday
    • May 1st – Labour Day
    • May 8th – Victory Day
    • May 26th – Ascension Day
    • June 5th – Whit Sunday
    • June 6th – Whit Monday
    • July 14th – Bastille Day
    • August 15th – Assumption Day
    • November 1st – All Saints Day
    • November 11th – Armistice Day
    • December 25th – Christmas Day
    • December 26th – St Stephens Day (observed in Alsace and Moselle only)
    Website Page 2 plane | Image | Playroll | Employer of Record | international payroll

    Leave

    Paid Leave / Vacation Days
    • 25 days per year (if work week is Monday – Friday)
    • 30 days per year (if work week is Monday – Saturday)
    • Collective Bargaining Agreements may make provision for additional leave days
    Sick Leave

    Daily benefit is paid to employees by Social Security from the 4th day of absence from work

    The employer is only required to pay the difference between this benefit and the employee’s normal compensation.

     

    • Maximum 6 months per 3 years – Employee has worked for at least 150 hours over the 3 calendar months or 90 days prior to taking the sick leave
    • Maximum 6 months per 3 years – Employee has paid social security contributions based on their gross earnings equivalent to 1,015 times the minimum hourly wage in the last 6 months prior to the Employee taking the sick leave
    • Maximum 12 months per 3 years – Employee has worked at least 600 hours in the last 12 months prior to taking the sick leave
    • Maximum 12 months per 3 years – Employee has paid social security contributions based on their gross earnings equivalent to 2,030 times the minimum hourly wage in the last 6 months prior to the Employee taking the sick leave
    Maternity Leave
    • Unpaid leave 
    • 16 weeks- 1 child born (provided this is the mothers 1st or 2nd child) 
    • 26 weeks- 1 child born (provided this is the mothers 3rd or more child) 
    • 34 weeks- 2 children born  
    • 46 weeks- 3 children born 
    Paternity Leave
    • Paid leave for the first 3 days. Unpaid leave for the remaining time off
    • 25-day parental leave
      Parental Leave
      • Unpaid leave
      • Maximum of 1 year
      Family Responsibility Leave

      Carer’s leave

      • Sick or injured child – Unpaid leave. 3 days
      • Disabled relative – Unpaid leave. 3 months 

      Bereavement leave

      • Death of a child  – Paid leave. 7 days
      • Death of a partner – Paid leave. 3 days
      • Death of a close relative – Paid leave. 3 days
      • Child accident or disability – Paid leave. 2 days
      • Family solidarity – Paid leave. 3 months
      Marriage Leave
      • Paid leave
      • Wedding or civil union – 4 days
      • Child’s wedding – 1 days
      Adoption Leave
      • Paid leave
      • If 1 child is adopted – 10 weeks
      • If more than 1 child is adopted – 22 weeks
      Start hiring in France today!