Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
An Employer of Record (EOR) in France owns a legal entity and enables foreign companies to hire employees on their payroll without setting up a company in France. The EOR acts as the legal employer, while the workers or contractors perform their services under the guidance and supervision of the client company.
| Overview | |
| Continent | Europe |
| Country | France |
| Capital | Paris |
| Time zone | UTC +1, UTC +5 |
| Total Time zones | 13 |
| Working hours per week | 35 |
| Working week | Monday–Friday |
| Typical hours worked | 7 |
| The personal Tax filing deadline | Mid-May |
| Financial Year | 1st January to 31st December |
| Date format | dd/mm/yyyy |
| Currency | Euro (EUR) |
| VAT | The standard rate is 20% |
Employer Payroll Contributions in France
| Employers | % of Gross Salary |
| Pension | 8.55% |
| Unemployment | 4.05% |
| Health Insurance | 13% |
| Wage Guarantee Insurance | 0.15% |
| Autonomy Solidarity Contribution | 0.3% |
| Family Benefits | 2.45% to 5.25% |
| Total Employment Cost | 28.5% |
In France, employers are responsible for making various contributions on behalf of their employees. These contributions play a crucial role in funding social security programs and providing essential benefits. Here are some of the key employer payroll contributions in France:
- Pension: Employers contribute 8.55% of the employee's gross salary towards the pension system. This contribution helps ensure that employees have access to retirement benefits and financial security in their later years.
- Unemployment: Employers are required to contribute 4.05% of the employee's gross salary to the unemployment insurance fund. This contribution supports the provision of unemployment benefits to eligible employees who have lost their jobs involuntarily.
- Health Insurance: Employers contribute 13% of the employee's gross salary to the national health insurance system. This contribution helps fund healthcare services and provides employees with access to medical care, including doctor visits, hospitalization, and medication.
- Wage Guarantee Insurance: Employers contribute 0.15% of the employee's gross salary towards the Wage Guarantee Insurance fund. This contribution ensures that employees receive their unpaid wages in the event of their employer's insolvency.
- Autonomy Solidarity Contribution: Employers contribute 0.3% of the employee's gross salary to the Autonomy Solidarity Fund. This contribution supports long-term care services for elderly and disabled individuals.
- Family Benefits: Employers contribute a percentage ranging from 2.45% to 5.25% of the employee's gross salary towards family benefits. These contributions help finance family-related benefits such as child allowances and parental leave support.
It's important for employers to accurately calculate and fulfill their payroll contribution obligations to ensure compliance with French labor laws and provide employees with the social benefits they are entitled to.
Employee Payroll Contributions in France
| Employees | % of Gross Salary |
| Pension | 6.9% |
| Social Security | 9.2% |
| Total Employee Cost | 16.1% |
In France, employees have payroll contributions deducted from their salaries. The key contributions are:
- Pension: Employees contribute 6.9% towards their future retirement benefits.
- Social Security: Employees contribute 9.2% for healthcare, maternity/paternity, disability, and unemployment benefits.
These contributions are deducted by the employer and help support the social security system, providing important benefits to employees.
Miniumum Wages in France
| Minimum Wage | |
| Minimum Wage | 10.25 EUR per hour. |
Payroll Cycle in France
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | Not mandatory. |
Income Tax Slabs in France
| Income Tax | |
| 0 - 10064 EUR | 0% |
| 10065 – 25659 EUR | 11% |
| 25660 – 70369 EUR | 30% |
| 73370 – 157806 EUR | 41% |
| Over 157806 EUR | 45% |
Employment Contracts in France
Employment Contracts
It is highly advisable to have written employment agreements in place when hiring in France. Certain types of employment contracts, such as fixed-term contracts, agency contracts, and part-time contracts, must be established in writing as required by law.
Probationary Periods
For indefinite term employment contracts, there are legal probationary periods based on the employee's role. Blue-collar employees and standard employees have a 2-month probationary period, supervisors and technicians have a 3-month period, and management-level employees have a 4-month period. However, it's important to note that Collective Bargaining Agreements (CBAs) may stipulate shorter probationary terms.
These probationary periods can be renewed once, for an additional 2, 3, or 4 months, respectively, if both the CBA and the employment contract explicitly allow for it.
Policies
Starting from January 1, 2020, companies or establishments with a workforce of at least 50 employees are required to have internal rules (Règlement intérieur) in place.
Third-Party Approval
The implementation of internal rules necessitates several steps, including consultation with staff representatives if applicable, submission to the labor inspector and the clerk's office of the labor court within the company's jurisdiction, and communication of the rules to employees through any suitable means.
Employment/Hiring Options in France
Employee
In France, employees have the option of entering into either an indefinite-term employment contract (Contrat à Durée Indéterminée or CDI), which is the most common type, or a fixed-term contract (Contrat à Durée Déterminée or CDD), which is only allowed in specific circumstances.
The employment contract can be either full-time or part-time, depending on the agreed-upon hours of work.
It's important to note that part-time and fixed-term employees are entitled to the same rights and benefits as regular employees, ensuring fair treatment and protection under the law.
Independent Contractor
Engaging in independent contractor relationships is permitted in France. However, it's essential to be cautious as there is a risk of reclassification into an employment contract and the potential for a determination of "concealed" work if a relationship of subordination between the contractor and the client is established.
Agency Worker
The employment of agency workers is subject to strict regulations outlined in the French Labor Code. These regulations ensure that agency workers are protected and granted appropriate rights and benefits.
Western Europe: EOR Belgium | EOR France | EOR Ireland | EOR Luxembourg | EOR Netherlands