Overview

Capital
Paris
Currency
Euro (EUR)
Date Format
dd/mm/yyyy

COVID-19

In France, it is not allowed to dismiss someone due to COVID-19.

The lawful reasons to terminate employment are:

  • Dismissal with cause (employee misconduct, personal insufficiency…)
  • Mutual agreement
  • Dismissal for economic reasons.

Taxes

Employer

Employer Payroll Tax

13.00%
Health, Maternity, Disability, Death
0.30%
Autonomy Solidarity Contribution
8.55%
Old Age Insurance (ceiling of 3,311 EUR)
5.25% or 2.45%
Family Benefits
4.05%
Unemployment (celing of 13,244 EUR)
0.15%
AGS (Wage Guarentee Insurance)
Up to 28.50% Total Employment Cost
Employee

Employee Payroll Taxes

6.9%
Old Age Insurance (ceiling of 3,311 EUR)
9.20%
Social Security Surcharge
Up To 16.10% Total Employee Cost

Employee Income Tax

Progressive rates from 0.0-45%
+3.0% surcharge for income over 250,000 EUR
Employer Taxes
3 HIGHEST
3 LOWEST
China
Brazil
Belarus
France
South Africa
Georgia
Macedonia
41.12%
36.8%
34%
28.5%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
France
Georgia
Belarus
Ukraine
45%
28%
27.65%
16.1%
2%
1%
0%

Minimum Wage

General

The monthly minimum wage is 1,554.58 EUR, or 10.25 EUR per hour.

 

Minimum wage (per month)
$4000
$2663
$2491
$1911
$36.80
$22
$2.33
Geneva
Luxembourg
Australia
France
Angola
Uzbekistan
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

The payroll cycle is monthly. While there is no fixed date when salaries must be paid, it is common to pay employees at the end of the month. It is also possible to have a pay date outlined in a collective labor agreement.

13th Salary

13th salaries are not mandatory, however, sometimes are set by national or industry agreements and are usually paid out at the end of the year.

Working Hours

General

A full-time workweek is 35 hours.

Overtime

Overtime is work done beyond the weekly 35 hours. With an established agreement overtime pay must be no less than 110% of the regular wages.  If no agreement is in place, overtime pay is 125% of the regular pay for the first 8 hours of overtime and 150% for every hour after. 

Leave

Paid Time Off

After the first month of probation, employees are entitled to  5 weeks of annual leave. 

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Georgia
France
Malaysia
China
Federal
30
13
43
30
12
42
24
17
41
25
11
36
8
6
14
5
7
12
10
10
Public Holidays

There are 11 public holidays.

Sick Days

An employee must put in at least 150 hours of work in the past 3 months or 90 days immediately before the leave or have contributed based on earnings of at least 1,015  times the legal hourly minimum wage in the last six calendar months.  

A payment of 50% of the insured’s daily earnings is paid after a three-day waiting period. 

Maternity Leave

Maternity leave is determined by the number of births:

  • Single birth, bringing mothers number of children to one or two: 16 weeks (6 before birth, and 10 after)
  • Single birth, bringing mothers number of children to three or more: 26 weeks (8 before birth, 18 after)
  • Birth of twins: 34 weeks (12 weeks before, 22 weeks after) *
  • Birth of triplets or more: 46 weeks (24 weeks before, 22 weeks after)
  • If the mother suffers an illness during pregnancy, she is entitled to two additional weeks before birth, and four additional weeks after birth.
PAID MATERNITY LEAVE (DAYS)
410
365
365
112
45
30
0
Bulgaria
Serbia
Albania
France
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Male employees are entitled to three days’ leave on the birth or adoption of a child. They are also entitled to 11 consecutive days paternity leave (18 if there are multiple births or adoptions), which must be taken within the four months following birth or adoption.

Parental Leave

Employees who have worked for at least one year before the date of their child’s birth, (or before welcoming a child no older than 16 years to their home with a view to adoption) can take parental leave or choose to work part-time. This right extends until the child’s third birthday, (unless the child was aged between three and 16 on arrival, in which case the adoptive parent can take one year’s parental leave from the date of arrival).

If employees take parental leave, their employment contract is suspended and the employer does not have to pay compensation. However, the employees can receive certain indemnities from the social security system.

Parents can also benefit from additional leave when their child is sick, which usually amounts to between three and five days depending on the child’s age and the parent’s number of children. However, if the child suffers from a serious illness or disability, or an accident, which requires continuous parental presence or constraining care, the parents can take a specific leave of 310 days over three years.

Termination

Termination Process

In France, it is not allowed to dismiss someone due to COVID-19

Resignation: No specific labor code. Can be submitted verbally or written, however, it is advised to provide a written notice. A fixed duration of notice does not exist, but notice should always be given. Notice period is determined on contract, agreement, or practices by profession.

Mutual Termination: Employers and employees agree on termination conditions in permanent employment contracts.

Economic Dismissal: These are jobs cut due to economical or technological changes.

Individual Dismissal: A preliminary dismissal interview must be set up and take place. 2 days to a month after the meeting a letter of dismissal must be sent to the employee

Notice Period
  • 1 month for employment between 6 months and 2 years.
  • 2 months for employment over 2 years
  • 3 months for executives.
Severance Pay

Calculations for severance pay depends on which payment provides the most favorable outcome. 

• Monthly average of last 12 months of employment
• Average monthly earnings of all months preceding dismissal
• 1/3 of the last 3 months

Probation Period
  • 2 months for blue-collar employees and clerks
  • 3 months for technicians and supervisors
  • 4 months for managers

VAT

General

20% standard rate.

Version History

January 1, 2021
Monthly minimum wage changed from 1,539.42 EUR to 1,554.58 as of January 1, 2021.

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    Questions & Answers

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    Victor D.
    Victor D.
    4 months ago

    Am I, as the employer, responsible for paying my employees during maternity leave? If so, does the French government contribute any part of it?

    Alex Margolin
    Admin
    4 months ago
    Reply to  Victor D.

    The French social security office pays your employee during her maternity leave. But for her to qualify, she must be registered with the social security office at least 10 months before the birth and worked at least 150 hours during the 90 days before the leave begins. The amount she receives will be equal to the average pay she received during the three months before birth.

    Naomi Gal
    Naomi Gal
    3 months ago
    1. If the employee has not used all his vacation days a year – is the balance of his vacation days transferred to the next year?
    2. How many sick days is the employee entitled to?
    3. As an employer, do I have to document the employee’s attendance?
    Alex Margolin
    Admin
    3 months ago
    Reply to  Naomi Gal

    1. If there is an agreement between the employee and employer, vacation days can be transferred to the following year – as long as the agreement aligns with the collective agreement in place, which can set limits on the number of days that transfer and whether they transfer at all. The exception is RTT days, which do not transfer.

    2. Typically, extended sick leave can go for six months or even a year. It is also possible to go longer, depending on the scenario. Social security does not cover the first three days.

    3. By law, an employer is required to track employee hours/days because there are mandatory maximums.

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