Payroll and Benefits Guide - France

France
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Currency

Euro (EUR)
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Capital

Paris
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Employer Taxes

29.50% – 31.30%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

France is the largest country in the European Union, covering an area of over 551,000 square kilometers.

The Eiffel Tower, located in Paris, is one of the most recognizable landmarks in the world.

France is the most visited country in the world, with millions of tourists flocking to its cities, landmarks, and regions each year.

France is one of the top wine-producing countries in the world.

Paris, France is considered one of the world’s fashion capitals.

France is home to the Palace of the Popes in Avignon.

France

Contributions

Employee Payroll Tax

Old Age Insurance (ceiling of 3,666 EUR taxable income per month)6.90%
Old-age insurance0.40%
Social Security Surcharge9.20%
Supplementary Pension & CEG up to EUR3,666 taxable income per month4.01%
Supplementary Pension & CEG from EUR3,666 to EUR27,424 taxable income per month9.72%

Employer Payroll Tax

Health, Maternity, Disability, Death (rate varies based on income)13.00% or 7.00%
Autonomy Solidarity Contribution0.30%
Old Age Insurance8.55%
Old-age insurance1.90%
Accidents at workVariable
Family Benefits3.45% – 5.25%
Unemployment4.20%
AGS0.15%
Supplementary Pension & CEG6.01%
Supplementary Pension & CEG14.57%

Payroll

Payroll Cycle

In France, salaries are typically paid on the last working day of each month, according to a monthly payroll cycle.

13th Salary

In France, it is usual to pay the 13th Salary at the conclusion of the calendar year.

Work Hours and Week

The standard workweek under French law for all businesses is 35 hours, with a maximum 10-hour workday.

Overtime

All work performed in excess of the required 35 hours per week must be compensated as overtime, which is typically calculated as follows:

For the first eight hours of overtime (from the 36th to the 43rd hour, inclusively), there will be an additional 25.00% per hour.

50.00% more for each every hour following that

France

Leave

Paid Time Off

The Labor Code establishes the minimum requirements for paid leave in France as five weeks of paid vacation per year after one month of probation, in addition to public holidays. The inclusion of additional leave days in collective bargaining agreements is a regular practice.

Public Holidays

There are 13 public holidays in France.

Sick Days

From the fourth day of a sick leave, the Social Security office reimburses all employees for missed work. It is typical for employers to offer additional remuneration, and this is described in detail in the collective/company agreements.

Maternity Leave

Six weeks prior to delivery and ten weeks following are considered part of the allotted 16 weeks of maternity leave for expectant women.

Paternity Leave

Congé paternité, or paternity leave, is a 28-day period in France. This entails a 28-day right to paternity leave with a required week off for new fathers.

Parental Leave

Upon employer consent, all employees with at least one year of service at the time of the child’s birth are eligible for parental leave (congé parental d’éducation).

Termination

Termination Process

An employment agreement may be terminated in a number of ways. In France, there are additional options for leaving your job, including mutual agreement negotiation (Rupture Conventionelle). Each of these methods calls for particular steps that the employer must take.

Termination via Mutual Agreement

A Mutual Termination Agreement (MTA), which can lower the risk of legal claims, is frequently used to fire employees. In this procedure, it is also possible to agree to shorter notice periods and exit payment terms than those required by law.

About 45 days pass throughout the Mutual Termination Agreement procedure. The employee has 15 days after signing the contract to change their mind. The Mutual Termination Agreement must be presented to the French Labor department once all conditions have been agreed upon.

Notice Period

France has the following notice requirements:

  • Employees departing within their first six months and two years of employment must give one month’s notice.
  • Employees who are terminating their employment after two years must give two months’ notice.
  • Executives are expected to give three months’ notice.

Severance Pay

The terms of the employment contract or collective bargaining agreement, the employee’s position or role, the reason for termination, and the goodwill between the employer and the employee are all important considerations that can have a significant impact on the amount of severance pay in France. The payment is typically based on a monthly sum determined by the highest monthly average over the previous year, the overall average monthly earning figure, or one-third of the payout over the previous three months.

Probation Period

Probation Period

Blue-collar workers must serve a two-month probationary period, technicians and supervisors a three-month probationary period, and management a four-month probationary period in France.

Unless otherwise specified in the agreement, either the employee or the employer may freely end the employment contract during the trial period without having to give a reason or pay a penalty. The dismissal procedure regulations do not apply.

However, a notice is required from both the employee and the employer in specific circumstances. The employee must be given at least 24 hours’ notice under the Labour Code, 48 hours’ notice under Sections 8 days to 1 month’s presence, 2 weeks’ notice after 1 month’s presence, and 1 month’s notice after 3 months’ presence.

Immigration

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, are the two main types of visas in France. A short stay (visa de court séjour) is required for visits of 90 days or less.

The employee does not require a work permit if they are from the EU/EEA or Switzerland.

A long-term work visa is also a residential permit (visa de long séjour). The French Ministry of Labor’s regional office receives the work contract for approval. Following primary approval, it is referred to the Office Français de l’Immigration et de l’Integration (OFII) for final approval. Upon approval, the contract confirmation is immediately forwarded to the French embassy in the employee’s country of residence.

Applications to bring family members to France can be submitted after obtaining a long-stay residence permit for 18 months.

A passeport talent visa, which is intended for executives, independent contractors, or employees at the employee level who have the potential to significantly contribute to the French economy, particularly in the intellectual, scientific, cultural, sporting, or humanitarian fields, can also be applied for. This visa is valid for four years and is renewable.

British nationals who have lived in France continuously since before December 31, 2020, must have a carte de séjour residency card by January 1 of 2022. The card may be legally demanded in a variety of circumstances as of this date.

VAT

In France, the standard VAT rate is 20.00%.