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.

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.

Forfait jours (annual day count for cadres):Many cadre-level employees in France work under a convention de forfait en jours — an annual fixed-day agreement (typically 218 days/year) rather than weekly hours. Under this system:

• The 35-hour weekly limit does not apply
• Overtime rates do not apply
• The employee must receive at least 11 hours daily rest and 35 hours weekly rest
• An annual review of workload and work-life balance is mandatory

Forfait jours applies to autonomous cadres (cadres autonomes) and must be provided for in the employment contract and the applicable CCN.

Minimum Wage

The SMIC (Salaire Minimum Interprofessionnel de Croissance) is EUR 1,801.80 per month gross (EUR 11.88/hour). The SMIC is revalued annually on 1 January and additionally when inflation exceeds 2% — verify the current rate at legifrance.gouv.fr.

Probation Period

Probation periods in France vary by employment category (Labour Code L1221-19). Renewal requires express agreement in the initial contract or collective bargaining agreement. The applicable CCN may set shorter maximum periods.

‍

‍

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

France has among the highest employer contribution rates in Europe. The total employer burden is approximately 40–45% of gross salary for a standard private sector employee. Key components (2025 approximate rates):

• Health / maternity / disability (CPAM):~13.0%
• Family benefits (CAF): 5.25%
• Basic pension — capped (CNAV): 8.55%
• Basic pension — uncapped: 1.90%
• Unemployment (Pôle Emploi): 4.05%
• Complementary pension AGIRC-ARRCO T1: ~4.72%
• Work accident insurance (AT/MP): ~2.22% (variable by sector)
• CSA (solidarity for autonomy): 0.30%
• Professional training (CPF/apprentissage): ~1.00%
• Transport levy (Île-de-France): ~2.95% (Paris area only)
• Mutuelle (complementary health): ~50% of plan cost (~EUR 30–70/month)

The exact total depends on sector, location, and collective bargaining agreement (CCN). A common planning figure for Paris-area tech hires is ~45% of gross salary in employer contributions.

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

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 of approximately EUR 52.28 per day net (2025, based on the CPAM daily reference salary ceiling — verify the current rate at ameli.fr as this is updated annually).

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 allowance (IJSS maternité) paid by CPAM is capped at approximately EUR 100.36 per day gross 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 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, 7.18 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

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.

Rupture conventionnelle (negotiated separation):The most commonly used termination method for professional workers in France. Key features:

• Both employer and employee must agree — neither can be forced
• Employee receives at least the statutory severance indemnity (same calculation as dismissal)
• Employee retains the right to unemployment benefits — unlike resignation, where no unemployment entitlement exists
• Requires a mandatory 15-business-day cooling-off period and approval (homologation) from DREETS (regional labour authority)
• Cannot be used during maternity leave or in cases of economic redundancy affecting multiple employees

For EOR clients, rupture conventionnelle is often the preferred exit route for both parties as it avoids the procedural complexity of dismissal while giving the employee unemployment rights.

Notice Period

Notice periods depend on seniority and employment category:

• Under 6 months: per applicable CCN (no statutory minimum in Labour Code; typically 8–15 days)
• 6 months to 2 years: 1 month
• 2+ years: 2 months
• Cadres (executives): 3 months (by CCN convention)

Payment in lieu of notice (PILON) is permitted. During a notice period the employee retains full salary and benefits.

Statutory Payments

Statutory minimum severance (indemnité légale de licenciement) applies to employer-initiated dismissal after 8 months of service:

• First 10 years of service: 1/4 month salary per year (= 25%)
• Beyond 10 years: 1/3 month salary per year (= 33%)

The higher rate kicks in at 10 years of service — not 2 years. Many CCNs provide more generous rates.

Severance is not due on resignation or rupture conventionnelle (see Termination section).

Incomplete years are calculated pro rata.

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