France
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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
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Unemployment Insurance Fund
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
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%
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
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
Employing less than 11 people
0.55%
Employing 11 or more people
1.00%
Apprenticeship Tax
Calculated on gross annual payroll
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)
0.15%
Labour Insurance
0.02%
National Housing Assistance Fund
Calculated on income
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
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
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
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
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

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)

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