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France

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Employer of Record (EOR) in France

What you'll learn

  • Country Introduction
  • Employment Terms
  • Minimum Wage and Working Hours
  • Statutory Leave Laws
  • Termination Process
  • Additional Information
France Introduction

France is a country in western Europe, bordered by Spain, Belgium, Luxembourg, Germany, Switzerland, Monaco, Italy, and Andorra in continental Europe. The country has several territories across the world such as French Guiana, the French West Indies, and more. France is considered a developed country with the world's 7th-largest GDP, and 4th-highest aggregate household wealth. The country also performs well in international rankings of healthcare, education, and life expectancy.

Employment Terms

Types of Contracts

Contracts can be part-time or full-time.

  • Fixed term
  • Indefinite term

Working Hours

Standard working hours in France are set at a maximum of 35 hours per week, with hours worked above this (up to a limit of 39) resulting in overtime, and/or additional leave (RTT).

RTT can be agreed upon as part of a collective bargaining agreement (e.g. 10 days of RTT per year, for a given set of working hours), or as the hours are worked (e.g. if a given week is 39 hours, the employee receives 4 hours of RTT).

Hours worked beyond the limit are paid as overtime: the % increase in pay is generally agreed as part of a collective bargaining agreement, or if this does not exist, the following rules apply:

  • First 8 hours/week: +25%
  • 9th+ hours /week: +50%

When an employee is working on a Sunday, this counts as a day worked (in their 218 days contract) and the employee must also receive 100% of their daily salary on top of the regular pay.

Minimum Wage

The minimum wage in France is typically set by collective bargaining agreements. As of January 1, 2024, the minimum wage in France is EUR 1,766.92 per month.

Probation Period

The maximum probation period allowed in France is 4 months, however, this can be extended sometimes for another 4 months, making it 8 months in total.

Taxes & Local Employment Costs

Employee Taxes

Income tax is subject to the personal circumstances of the employee (marriage, number of children). The “neutral tax rate” assuming a single employee with no children is listed here. Income tax is then taken from this net amount. Employees must also pay social security contributions, which amount to approximately 21% of their gross salary.

Employer Taxes & Contributions

Employers must pay the following contributions in addition to gross salary:

  • Social Security: 24% of gross salary, on average
  • Pension: 15% of gross salary
  • Unemployment Benefit: 4% of gross salary
  • Other Employer Costs: 9% of gross salary, on average

Social Security Breakdown

Social Security is made up of:

  • Family Benefits
  • Health, Disability, Death, Social Security
  • Transportation tax
  • Private Medical Insurance (statutory benefit)
  • Private Life insurance (statutory benefit)
  • Social Charges (Solidarité Autonomie)
  • Accident at Work
  • Wage guarantee fund
  • Old age insurance
  • Professional training tax

Types of Leave

Annual Leave (Vacation)

The French paid leave system entitles workers to a minimum of 25 working days of paid leave per year. This is based on a standard 35-hour workweek, and the allowance can increase depending on factors such as the employee's age, length of service, and industry.

However, the standard number of days of PTO granted by employers in France is higher than this, at around 34 days on average for knowledge workers. Paid leave is accrued on the basis of 2.08 days per month worked. Any days accrued until 31st May in a given year should be used before 31st May in the following year.

Sick Leave

Employees are entitled to up to 6 months of absence from work as part of their sick leave, providing that:

  • They have worked at least 150 hours in either the 90 days or 3 calendar months prior to the absence
  • They paid contributions during the 6 calendar months preceding the absence on the basis of remuneration at least equal to 1,015 times the amount of the statutory hourly minimum wage (SMIC)

To continue to receive compensation after 6 months, they must meet the following conditions:

  • On the date of interruption from work, the employee was affiliated to a social security scheme (CPAM, MSA) for at least 12 months and  worked at least 600 hours during the 12 calendar months or the 365 days preceding the absence
  • The employee paid contributions during the 12 calendar months or the 365 days preceding the absence on the basis of remuneration at least equal to 2,030 times the amount of the statutory hourly minimum wage (SMIC)

During the period of absence, the employee is paid 50% of their average basic daily wage over the last 3 months, capped at a maximum amount of around EUR 89 per day.

After one year of service, the employer must cover the first 3 days of sick leave in full and must complete the difference between social security and regular salary. The employer must do this for at least 60 days, and this increases after 5 years of seniority.

Maternity Leave

Employees are entitled to 16 weeks of maternity leave, which typically starts 6 weeks before the presumed birth date. Mothers can postpone this up to 3 weeks before the predicted birth date by requesting this from a doctor. If the child is the mother’s third or more, the leave is extended to 26 weeks.

The maternity pay allowance paid by the state is capped at around EUR 91 per day during maternity leave. After 1 year of service, employers must pay the employee the difference to make up their full salary. For less than 1 year of service, the employer is not obligated to make up the difference, although many employers choose to agree to this in their contract with the employee.

For more information, see here.

Paternity Leave

Employees in France are entitled to 28 days of Paternity leave. Three of these days must be taken immediately after the birth of the child (the father does not have the right to work during these 3 days). The remaining 25 days can be split into two periods within the 6 months following the birth of the child.

This leave also applies for same-sex couples. Employers pay the first 3 days of the leave, then social security covers the rest.

For more information, see here.

Public Holidays

There are 11 Public Holidays in France. If the the Public Holiday is happening on a weekend day it is not postponed to the next Monday.

  • New Year’s Day - January 1
  • Easter Monday - Day after Easter Sunday
  • Labor Day - May 1
  • Victory Day - May 8
  • Ascension Day - Thursday, 39 days after Easter Sunday
  • Whit Monday - Monday after Pentecost
  • Bastille Day - July 14
  • Assumption Day - August 15
  • All Saint’s Day - November 1
  • Armistice Day - November 11
  • Christmas Day - December 25

Reduction of Working Time (RTT)

The Reduction of Working Time (RTT) in France is a labor policy that gives employees with more than 35 hours of work per week additional days off. The number of RTT days is determined by an agreement, usually a company agreement. These agreements help manage and distribute working hours more evenly among employees, contributing to the goals of improved work-life balance and increased employment opportunities.

Benefits

Summary

Employers in France can typically offer the following benefits:

  • Medical Insurance (statutory obligation)
  • Life Insurance (statutory obligation)
  • Travel & Repatriation Insurance (statutory obligation)
  • Transportation reimbursement, for employees commuting (minimum 50% statutory obligation)
  • Working from Home Allowance (tax-exempt, capped at 57 EUR/month)
  • Meal Allowance (tax-exempt, 6.50 EUR/working day)

Note that any benefits offered must apply to all employees equally.

Medical Insurance

Employers have the obligation to provide Private Health Insurance, called "Mutuelle", with the same plan for all employees. The cost of the Mutuelle is split between the employer and the employee. The employee also has the obligation to subscribe to the Mutuelle contract chosen by the employer.

Termination Process

Termination Process

There are 3 ways to terminate an indefinite contract in France: resignation, termination by mutual agreement, and dismissal. In addition, an employee who is terminated has the right to a notice period, which varies depending on the length of their employment, and a termination indemnity, which is calculated based on their length of service at the company.

Notice Period

Notice periods in France depend on the length of employment at the company:

  • 6 months-2 years = 1 month notice
  • 2+ years = 2 months notice
  • Executives = 3 months notice

Statutory Payments

Any unused annual leave (including RTT) should be paid out at the end of the contract. Severance is payable to terminated employees as follows:

  • Less than 2 years of service = 25% of monthly salary per year of service
  • More than 2 years of service = 33% of the salary per year of service

Incomplete years are calculated pro rata.

Additional Information

While not required by law, a 13th-month salary is customary and generally paid at the end of each year.

OVERVIEW
Language(s):
French
Currency:
Euro (EUR)
Capital City:
Paris
Population:
67.7 Million
Cost of Living Rank:
23rd
VAT (Valued Added Tax):
20%
Employer TaxES
52%
(estimated)

★  24% - Social Security

★  15% - Pension

★  4% - Unemployment

★  9% - Other Employer Costs

Get Started in 3 Steps

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
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Available in 180+ countries
How Remofirst employs in France

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in France get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in France are paid on time in Euro (EUR). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in France, they can speak with our customer support team to get answers from our team of experts.