Hiring Employees Guide in France
November 27, 2018
Hire in France
France PEO &
Employer of Record
Hire & manage teams remotely in France without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Business Language
French
Salary Currency
Euro (EUR)
Payroll tax
29.50% - 31.30%
Payroll Cycle
Monthly
Time zone
UTC +2
Capital city
Paris
Hire Employees in France
NNRoad provides employer of record (EOR) & professional employment organization (PEO) services to ensure that your business in France complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.
The NNRoad Advantage ☺
Pay as you go
No set-up or overhead costs to global expansion.
Global account manager
One point of contact for all of our 50+ serviced countries and regions.
Compliance
Ensured compliant contracts and operations.
Fast Onboarding
Start working with your remote employees/contractors within a week.
Foreigner Visas
NNRoad assists with overseas foreign hires visa needs.
Platform
Access your payroll reports and employee pay stubs on our portal.
Employer of Record in France
Employer of Record (EOR) services are for companies who do not have a legal entity in France, but who want to hire localy. Employment and full liability are outsourced to NNRoad.
01.
Candidate Selection
You interviews & select the candidates you want to hire in France.
02.
Employee Onboarding
We sign a local labor contract with your employees based in France.
03.
Compliance & Payroll
We manage monthly payroll, mandatory benefits & all HR compliance in France.
04.
Payroll Reporting
See all payroll reports on our platform & focus on your business in France.
Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.
Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
On-boarding and off-boarding employees following labor law practice.
Complete payroll solution and benefit administration
Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.
Payment management (Invoicing customers/clients and vendor payments).
Work VISA application assistance, if needed.
Local individual income tax reporting.
Payroll & PEO in France
Professional Employment Organization (PEO) services are for companies who have a legal entity in France, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.
01.
Compliance & Payroll
We manage monthly payroll, mandatory benefits & all HR compliance in France.
02.
Payroll Reporting
See all payroll reports on our platform & focus on your business in France.
Registering the necessary company and personnel information for payroll calculation in the payroll software and system
Monthly Payroll Processing
Year-End Adjustment and Annual Declaration
Taxes & Payroll in France
Employee Income Taxes:
Individual income tax rates in France are based on progressive tax brackets.
In France, income taxes are a significant aspect of the country’s tax system. The income tax is levied on individuals’ income, including salaries, wages, and other forms of income, such as rental income and capital gains. The tax rate varies depending on the individual’s income level, with higher earners paying a higher rate.
French employers are required to deduct income tax from their employees’ salaries and remit it to the government on their behalf. Self-employed individuals and business owners are responsible for paying their income taxes directly to the government.
Tax Brackets
0%: 0 – 10,225 EUR
11%: 10,225 – 26,070 EUR
30%: 26,070 – 74,545 EUR
41%: 74,545 – 160,336 EUR
45%: >160,336 EUR
11%: 10,225 – 26,070 EUR
30%: 26,070 – 74,545 EUR
41%: 74,545 – 160,336 EUR
45%: >160,336 EUR
Sample Calculation
Yearly income = 100,000 EUR
0% * 10,225 = 0
11% * 15,845 = 1743
30% * 48,475 = 14,543
41% * 25,455 = 10,437
1743+14,543+10,437 = 26,723
Yearly income tax = 26,723 EUR
0% * 10,225 = 0
11% * 15,845 = 1743
30% * 48,475 = 14,543
41% * 25,455 = 10,437
1743+14,543+10,437 = 26,723
Yearly income tax = 26,723 EUR
Employer Costs in France
Employer costs in France can be significant and complex, making it essential for companies operating in the country to understand the various costs they may incur. In addition to salaries and wages, employers are required to contribute to social security, unemployment insurance, and other mandatory social charges. These charges can vary depending on factors such as the employee’s salary level and the size of the company. Employers may also be required to provide benefits such as healthcare coverage and retirement plans, which can further increase their costs.
It’s worth noting that labor laws in France can be strict, with strong protections for employees, which can further increase costs associated with employee management. Therefore, working with a Professional Employer Organization (PEO) can help companies navigate the complex employer costs and ensure compliance with local labor laws. PEOs can also offer cost-effective solutions for employee benefits and other expenses, helping companies reduce their overall costs.
Employer Contribution
Employers must pay contributions based on the salary of their employees:
0.5% – 1.75% – Transportation tax (2% – 3% for those in the Paris metro area)
1% – Training tax (0.5% for firms with less than 10 employees)
100 EUR per year per employee for the mandatory medical exam.
Social Charges (CSG): 9.7% of employee’s gross monthly salary
Unemployment benefit: 4.05% of employee’s monthly gross salary
Main pension: 10.45% of employee’s monthly gross salary
Complementary pension: 17% of employee’s monthly gross salary
Accident at work: 3% of employee’s monthly gross salary
Health/Sickness: 13% of the employee’s monthly gross salary
Family benefits: 5.25% of employee’s monthly gross salary
Total cost: 52,75%
Employee Contribution
Social Charges (CSG): 9.7% of employee’s monthly gross salary
Unemployment benefit: 0.95% of employee’s monthly gross salary
Main pension: 7.30% of employee’s monthly gross salary
Complementary pension: 11.20% of employee’s monthly gross salary
Accident at work: varies
Health/Sickness: varies
Family benefits: varies
Total cost: 29,15%
Benefits & Insurance in France
In France, employers are required to provide various benefits and insurance to their employees. Social security is mandatory and covers healthcare, family allowances, retirement, and unemployment insurance. The French healthcare system is one of the best in the world, providing universal coverage to all residents. In addition to social security, employers may offer additional benefits such as private health insurance, life insurance, and retirement plans.
These benefits can be regulated by collective bargaining agreements and may vary by industry. It’s worth noting that providing employee benefits in France can be complex, with strict regulations and high costs. Working with a Professional Employer Organization (PEO) can help companies navigate these complexities and provide cost-effective solutions for employee benefits and insurance. PEOs can also help companies comply with local labor laws and regulations, ensuring that they meet their obligations as employers and provide the best possible support to their employees.
Pension Fund
The pension fund in France is a social security system designed to provide retirement benefits for workers in the country. It operates on a pay-as-you-go basis, with current workers’ contributions funding the pensions of current retirees.
The system is managed by several pension schemes, including the general scheme, which covers private-sector employees, and various special schemes for specific professions. Reforms have been undertaken in recent years to address the financial sustainability of the system due to an aging population and increasing life expectancy.
Healthcare Insurance
Healthcare insurance in France is a universal and comprehensive system known as the French National Health Insurance (Sécurité Sociale). It provides coverage for medical expenses and ensures access to healthcare services for all residents in the country, including both citizens and legal residents.
The system operates on a combination of mandatory contributions from employees, employers, and the self-employed, as well as government funding. Patients have the freedom to choose their healthcare providers, and reimbursement rates for medical expenses are generally high.
Supplementary private insurance is also available to cover additional costs not covered by the basic insurance.
Working Hours in France
France has a legal working time of 35 hours per week, with any additional hours classified as overtime. However, some industries and collective bargaining agreements may have different working hour requirements. French labor law also mandates a maximum of 10 hours of work per day and a minimum of 11 consecutive hours of rest per day. Employers are required to provide employees with a minimum of 30 minutes of break time after six hours of work.
Working Hours Per Week
The work week in France is 7 hours per day, 35 hours per week. Employees in France work 5 days a week. Any work over 35 hours in a week is considered overtime. Employees working overtime are entitled to extra pay depending on the situation.
Employees cannot work more than 10 hours in a workday, with 48 hours being the maximum for a workweek. The first 8 overtime hours will be paid at 125% of the set wage, while any additional hours will be paid at 150% per hour. Yearly bonuses include 13th and 14th-month salaries.
Overtime
Overtime is compensated at a higher rate than regular working hours, with rates varying based on the industry and collective bargaining agreements. Employers are also required to keep records of working hours and provide them to employees upon request. French labor laws place a strong emphasis on work-life balance, with a maximum of 48 hours of work per week, including overtime, and mandatory paid vacation time of at least 25 days per year.
Termination Laws in France
In France, employment termination is heavily regulated by labor laws, and terminating an employee’s contract can be a complex and time-consuming process. The country’s labor laws prioritize job security for employees, making it difficult for employers to terminate employment contracts without just cause. Employers must have valid reasons for terminating an employee’s contract, such as serious misconduct or poor performance, and must follow specific procedures to ensure that the termination is legally valid.
Severance
Severance in France can be a statutory entitlement or a more generous payment in a closed bracket agreement (CBA). French law protects employees from illegal termination such as termination stemming from race, gender, or sexual preference.
Notice Period
Employers must provide employees with notice of termination, pay any outstanding wages, and provide severance pay in some cases. Failure to comply with these requirements can result in legal action against the employer. It is recommended that employers seek legal advice before terminating an employee’s contract to ensure compliance with French labor laws.
Employment Contract in France
Employment Contract
Written contracts are not required when hiring employees in France, but it is advised. The most common contract in France Employment contracts is Open-ended contracts (the most common contract in France). This is not required to be in writing.
Probation Period
Unless the employee’s employment agreement states otherwise, the employment contract can be terminated during the probationary period without cause and at no additional cost to the employer beyond providing the mandated notice.
Maximum probationary periods are two months for “blue-collar workers” and clerks, three months for technicians and supervisors, and four months for cadres (mid- to high-level executives and professionals).
Types of Leaves in France
Annual Leave
Employees in France are entitled to a minimum of 5 weeks paid leave per year on top of public holidays. French law also reserves extra paid leave for employees whom have been employed for a certain length of time and for family emergencies.
Companies can choose to place their employees on an annualized work schedules, which qualify them for ‘Reduction du temps de travail’ which translates into “work time reduction” (RTT). RTT days entitle employees to additional days off as compensation for the extra workload.
Sick Leave
Employees in France are entitled to sick leave. For each case of sick leave, the first 3 days of sick leave are unpaid. Starting at the 4th day of sick leave, employees are entitled to 50% of their base daily salaries, limited up to 360 days in 3 years.
Maternity Leave
Maternity leave in France depends on the number of children in the family:
Single birth and 1-2 children: 16 weeks of leave
Single birth and 3 or more children: 26 weeks of leave
Multiple births (3+): 46 weeks of leave.
If the mother suffers from complications or illnesses during the pregnancy, she is entitled to an extra 6 weeks.
Paternity Leave
New fathers are entitles to 3 days of paternal leave after birth or adoption and an additional 2 consecutive days of leave (32 inn case of multiple births or adoptions).
Public Holidays in France
Public holidays in France, also known as “jours fériés”, are an important part of the country’s cultural and historical heritage. There are 11 official public holidays in France, which include both religious and secular celebrations. The most important national holiday is Bastille Day, celebrated on July 14th, which commemorates the storming of the Bastille during the French Revolution.
Other notable holidays include New Year’s Day, Easter Monday, Labor Day, Victory in Europe Day, Ascension Day, Whit Monday, and All Saints’ Day. Some holidays are specific to certain regions, such as the Feast of the Assumption in some parts of the country. Many French people use public holidays as an opportunity to spend time with family and friends, travel, or participate in cultural events and activities.
Public Holidays
Resources