An Employer of Record (EOR) in France is a company that takes on the responsibility of being the legal employer for a worker. This includes managing payroll, benefits, and other employment-related tasks on behalf of the worker's actual employer.
Discover the key considerations and essential details you should be aware of before you hire your remote team in France.
On this page: Key Facts About France | Employment Contracts in France | Employment Law in France | Social Security Contributions in France | Personal Income Tax in France | Work Permits in France | Employee Benefits in France
Key Facts About France
France is one of Europe’s leading destinations for hiring skilled talent, especially in technology, fintech, cleantech, and AI.
- Paris is a top innovation hub, home to over 8,000 startups and the world’s largest startup campus, Station F. Google’s teams there include over 40 nationalities, reflecting its global talent appeal. (Sundar Pichai)
- Startup funding in France reached €7.1 billion in 2024 (up 3% YoY), with AI accounting for 27% of total investment — an 82% increase from the previous year. (State of the French Tech Ecosystem 2024, 20VC)
Sector strengths include:
- Fintech – Companies like Pennylane and Aria raised major funding rounds in 2023.
- Cleantech – France committed €54 billion to climate tech through its France 2030 plan.
- AI – Leading firms like Pigment, Aircall, and Poolside raised significant capital; Paris hosts major AI events. (Startup Genome)
- France has over 50,000 AI developers, ranking among the top globally. (CBRE, LinkedIn Talent Insights)
- France ranks 8th globally for startup ecosystems and has 32 cities in the top 1,000. (StartupBlink)
These indicators make France an attractive option for companies looking to hire high-quality talent through an Employer of Record.
Employment Contracts in France
An employment contract in France defines the working relationship between employer and employee, including duties, compensation, and terms of employment.
Is a Written Contract Mandatory?
A written contract is not legally required for full-time permanent roles (CDI), but is strongly recommended. For all other contracts—fixed-term (CDD), part-time, temporary, and specific arrangements—a written agreement is mandatory. Employers must also provide a copy of the Déclaration Préalable à l’Embauche (DPAE) when hiring.
Main Types of Employment Contracts
- CDI (Permanent Contract): No fixed end date; can be full-time, part-time, or intermittent.
- CDD (Fixed-Term Contract): For temporary needs such as replacements or seasonal work; strictly regulated.
- Temporary (Interim) Contract: Worker is employed by a staffing agency for short-term assignments.
- CESU Contract: Simplified format for private individuals hiring home-based workers.
Language and Penalties
Contracts must be in French, though foreign employees can request translations. Non-compliance—such as failing to provide a written contract when required—can lead to fines up to €3,750 and possible reclassification as a full-time CDI.
Employee Onboarding in France
Key Employer Obligations When Hiring in France
- Prior Declaration of Hiring (DPAE): Before an employee begins work, the employer must submit a Déclaration Préalable à l’Embauche (DPAE) to the relevant social security body (URSSAF). This declaration ensures the employee is properly registered and covered under France’s social protection system.
- Verification of Work Authorization: If the employee is a foreign national, the employer must verify that they hold a valid work permit authorizing them to work in France. Hiring a foreign worker without proper authorization can lead to legal penalties.
- Provision of Essential Employment Information: The employer is required to communicate essential details about the employment relationship to the employee, typically through an employment contract. This includes job duties, salary, work hours, and employment terms.
- Compliance with Employment Formalities: Employers must comply with all formalities related to hiring, including proper registration and documentation. Failure to do so can result in criminal penalties for illegal employment or non-compliance with labor regulations.
What is the Pre-Employment Declaration (DPAE)?
Before hiring any employee—regardless of the type or duration of the contract—employers in France must submit a Pre-Employment Declaration (DPAE) to the relevant social security body (URSSAF for most employees, MSA for agricultural workers). This is a legal requirement and must be done before the employee starts work. Failing to submit this declaration can lead to criminal and administrative penalties for illegal employment.
Employers using systems like TESE (for businesses), CEA (for non-profits), or CESU (for individuals hiring for personal services) are considered to have fulfilled this obligation automatically.
What Information Does the DPAE Include?
The DPAE contains key details such as:
- Employer details: name, address, industry code, and occupational health service.
- Employee details: full name, gender, date and place of birth, social security number.
- Job information: date/time of hire, contract type and length, trial period.
- Additional data for agricultural employees, if applicable.
What Does the DPAE Cover?
By submitting a DPAE, the employer fulfills multiple obligations:
- Registers the employer and employee with the social security system.
- Enrolls the employer in the unemployment insurance scheme.
- Requests an occupational health registration and medical check (if needed).
- Registers agricultural employees with applicable institutions.
How and When to Submit the DPAE?
- Submit the DPAE at least one day before the employee starts.
- It can be sent up to 8 days before the planned start date.
- For regular employees, it’s sent to URSSAF; for agricultural workers, it’s sent to the MSA.
URSSAF then forwards the relevant information to all necessary government bodies.
Employment Laws in France
Minimum Wages
As of November 1, 2024, the minimum gross monthly wage in France is €1,801.80. This applies to full-time employees (35 hours per week) and is reviewed periodically by the French government to account for inflation and economic conditions.
Working Hours
In France, the legal standard for full-time work is 35 hours per week. However, employers and employees may mutually agree to exceed this limit, in which case any additional time is considered overtime.
Even with such agreements, the law places firm limits on total working time to protect employee wellbeing:
- No more than 10 hours per day
- No more than 48 hours in a single week
- An average of 44 hours per week over any 12-week period
While overtime is compensated financially, it does not automatically grant extra time off unless covered by a collective bargaining agreement.
Overtime Compensation in France
Employees in France are entitled to additional pay or time off for hours worked beyond the legal 35-hour workweek. The standard overtime pay rates are:
- +25% pay for hours 36 to 43
- +50% pay for hours from the 44th hour onward
Alternatively, employers may offer compensatory time off instead of extra pay. This is called “repos compensateur”, allowing employees to take time off equivalent to the extra hours worked. The exact terms for this are usually defined in collective bargaining agreements or internal company policies.
Payroll Cycle in France
In France, employees are typically paid once a month, usually at the end of the month. While there’s no legally fixed payday, it's standard practice to issue salaries on the last working day of each month.
Some companies also offer additional bonuses:
- 13th-month bonus: Usually paid in December
- 14th-month bonus (if applicable): Often paid in June
These bonuses are not mandatory but may be included as part of collective agreements or internal company policies.
Probationary Periods in France
The length of a probationary period in France depends on the employee's role and level of responsibility, as defined by the French Labor Code:
- 2 months: For blue-collar and office workers (under direct supervision).
- 3 months: For technicians and supervisors (with some autonomy and specialized skills).
- 4 months: For executives (with full autonomy and managerial responsibilities).
Employers may renew the probation period once, if allowed by the employment contract or collective agreement.
Notice Periods in France
The length of the notice period depends on the employee’s tenure and role, as well as the applicable collective agreement:
- 1 month: For employees with 6 months to 2 years of service
- 2 months: For employees with over 2 years of service
- 3 months: For executive-level employees
Collective agreements may provide longer notice periods.
Severance Pay in France
Employees on permanent contracts (CDI) who are dismissed after at least 8 months of service are entitled to statutory severance pay. The amount is based on the higher of the employee’s average salary over the past 3 or 12 months.
- 1/4 of a month’s salary for each year of service (first 10 years)
- 1/3 of a month’s salary for each year beyond 10 years
Severance can be higher if specified by collective agreements or individual contracts.
Personal Income Tax in France
In France, personal income tax for 2025 is calculated using a progressive scale combined with the family quotient system.
Family Quotient System: The household's net taxable income is divided by the number of "shares" (parts) determined by household composition:
- Each adult counts as 1 share.
- The first two children count as 0.5 share each.
- Each additional child counts as 1 full share.
2025 Income Tax Brackets (per share)
|
Income Range (€) |
Tax Rate |
|
Up to 11,497 |
0% |
|
11,498 – 29,315 |
11% |
|
29,316 – 83,823 |
30% |
|
83,824 – 180,294 |
41% |
|
Above 180,294 |
45% |
How Tax is Calculated Using Examples
Single Person (1 share), €30,000 Income
- €0 on first €11,497
- 11% on €11,498 to €29,315
- 30% on €29,316 to €30,000
Total tax: €2,165.48
Married Couple with 1 Child (2.5 shares), €60,000 Income
- Family quotient: €60,000 ÷ 2.5 = €24,000
- Tax on €24,000 per share is calculated, then multiplied by 2.5
Total tax: €3,438.33
Single Parent with 1 Child (2 shares), €30,000 Income
- Family quotient: €30,000 ÷ 2 = €15,000
- Tax on €15,000 per share × 2 shares
Total tax: €770.66
Single Parent with 2 Children (2.5 shares), €30,000 Income
- Family quotient: €30,000 ÷ 2.5 = €12,000
- Tax on €12,000 per share × 2.5 shares
Total tax: €138.25
Married Couple with 2 Children (3 shares), €60,000 Income
- Family quotient: €60,000 ÷ 3 = €20,000
- Tax on €20,000 per share × 3 shares
Total tax: €2,805.99
Married Couple with 2 Children (3 shares), €90,000 Income
- Family quotient: €90,000 ÷ 3 = €30,000
- Tax on €30,000 per share × 3 shares
Total tax: €6,496.44
Work Visas and Work Permits in France
Foreign nationals who wish to work in France generally need a valid work permit and visa before starting employment, unless they are citizens of the European Economic Area (EEA) or Switzerland, who enjoy freedom of movement and do not require work authorization.
Types of Work Permits
- Short-term work permit (Salarié détaché): For temporary assignments, typically less than 90 days.
- Temporary work permit: For contracts shorter than 12 months.
- Long-term work permit: For employees hired on longer contracts or indefinite contracts.
- Skills and Talents Permit (Carte de séjour “compétences et talents”): For highly skilled workers contributing to the French economy.
- EU Blue Card: For highly qualified non-EU workers with a high level of education and a work contract offering a salary above a defined threshold.
Visa Requirements
- Short-stay visa (Schengen visa): Allows stays up to 90 days but does not grant the right to work.
- Long-stay visa (Visa de long séjour): Required for work contracts longer than 90 days; often combined with a residence permit.
Employer Obligations
- Verify that the employee holds a valid work permit and visa before hiring.
- Submit necessary declarations to French authorities to obtain and validate work authorization.
- For certain categories, employers must apply for authorization from the French Ministry of Labor before hiring.
Exceptions
- Citizens of EEA countries and Switzerland do not need work permits or visas to work in France.
- Some short-term assignments may be exempt under specific conditions, but formal notification may still be required.
Employee Benefits in France
France offers a comprehensive benefits system designed to protect and support employees throughout their careers. This includes both mandatory benefits required by law and supplementary benefits often provided through collective agreements or company policies. Together, these benefits cover retirement, health, disability, family support, and more, ensuring a strong social safety net for workers. Below is an overview of the key mandatory and supplementary employee benefits in France.
Mandatory Employee Benefits in France
- Old-Age Pension: Employees can retire from age 62, but a full pension usually starts at age 67. Pension rights may include credits for time spent unemployed, disabled, or raising children. Special rules apply for disabled persons, working mothers, and others.
- Solidarity Allowance for the Elderly: Low-income pensioners aged 65 or older, or those unable to work due to disability, can receive this allowance.
- Long-Term Disability Pension: If an employee under retirement age loses at least two-thirds of their ability to work and meets certain work and contribution conditions, they can get long-term disability benefits.
- Short-Term Disability Benefits: Employees who become sick and meet minimum work requirements can receive daily payments during sick leave, starting at 50% of their average daily salary, increasing after 30 days if they have dependents.
- Spouse’s Pension: A surviving spouse aged 55 or older, or disabled, can receive a pension after the employee’s death. Civil partners or unmarried survivors are not eligible.
- Death Grant: A one-time payment is made if the deceased was employed or receiving certain benefits at the time of death.
- Workers’ Compensation: Employees injured at work receive compensation based on the severity of their disability and previous salary. Survivors may also receive pensions based on the deceased’s salary and family situation.
- Medical Insurance: All employees are covered by mandatory health insurance through the social security system, ensuring access to medical care.
Supplementary Employee Benefits in France
- Retirement and Death-in-Service Benefits: In addition to the basic state pension, private-sector employees contribute to supplementary retirement plans: ARRCO for all employees and AGIRC for executives. These pension plans work like defined benefit schemes funded by current worker and employer contributions.
- Employers must also provide death-in-service benefits for executives, with additional allowances sometimes paid through social insurance or collective agreements. These benefits often include group life insurance and survivors' insurance.
- Short-Term Disability: Employees who meet certain work and contribution requirements can receive short-term sickness benefits. The amount paid depends on collective agreements and company policies.
- Long-Term Disability: Employees under 60 who become permanently disabled (earning capacity reduced by two-thirds or more) and meet contribution criteria are eligible for disability pensions. Surviving spouses with disabilities may also receive a related pension if they meet specific conditions.
- Medical Insurance: Since 2016, all employees have mandatory medical coverage under the National Inter-Professional Agreement (ANI). Employers must pay at least half of the employee’s health insurance premiums. Employees usually pay a co-payment for healthcare.
- Workers Compensation: Supplementary workers’ compensation benefits can include pensions for permanent disability and survivor benefits, as defined by collective agreements.
- Retirement: Supplementary pension plans pay retirement benefits based on contributions from active workers and employers, similar to a defined benefit system.
- Career Termination Indemnities: Employees with at least one year of service are entitled to severance pay. The amount depends on years of service, typically calculated as a fraction of monthly salary per year worked, increasing after 10 years. Employers also often maintain health and disability coverage for up to 9 months after contract termination.
In summary, working with an Employer of Record (EOR) in France is a great way for companies to start doing business there without needing to create a local company. EORs handle all the legal requirements, payroll, social security, and HR tasks. France’s rules can be complex, but an EOR makes sure everything is done correctly and saves companies time and effort. This helps businesses hire local employees quickly, focus on their main work, and grow smoothly. Since France is a key market in Europe, using an EOR is an easy and safe way to expand.
Western Europe: EOR Belgium | EOR France | EOR Ireland | EOR Luxembourg | EOR Netherlands
Social Security Contributions in France
Employers in France are required to make social security contributions covering various categories of employee protection. These include:
Other Employer Contributions: These may include training levies and housing support contributions.
These contributions are typically handled by the Employer of Record (EOR), ensuring full compliance with French employment law and social protection obligations.
Here’s a summary table of social security contributions in France as of January 1, 2025.
Contribution Type
Employer Rate
Employee Rate
Notes
Health, Maternity, Disability, Death
7% or 13%
–
Rate depends on employer eligibility conditions
Autonomy Solidarity (CSA)
0.3%
–
Employer-only contribution
Old-Age Insurance (Capped)
8.55% (up to €3,925/month)
6.9% (up to €3,925/month)
Subject to ceiling
Old-Age Insurance (Uncapped)
2.02%
0.4%
No ceiling
Accidents at Work
Varies by sector & risk
–
Rate depends on nature of the business activity
Family Benefits
5.25% or 3.45%
–
Lower rate applies under certain conditions
CSG (General Social Contribution)
–
9.2% on 98.25% of gross salary
Employee-only; taxable
CRDS (Social Debt Repayment)
–
0.5% on 98.25% of gross salary
Employee-only
Unemployment Insurance
4.05% (up to €15,700/month)
–
Applies up to ceiling
Wage Guarantee Scheme (AGS)
0.20% (up to €15,700/month)
–
Employer-only
Supplementary Pension (Agirc-Arrco)
Based on salary brackets
• Bracket 1 (up to €3,925)
4.72% + 1.29% (CEG)
3.15% + 0.86% (CEG)
Total: Employer 6.01%, Employee 4.01%
• Bracket 2 (€3,925 to €31,400)
12.95% + 1.62% (CEG)
8.64% + 1.08% (CEG)
Total: Employer 14.57%, Employee 9.72%