Overview

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

Taxes

Employer

Employer Payroll Tax

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

Employee Payroll Taxes

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

Employee Income Tax

0%
Up to 9,807
5.05%
9,807 - 27,086
9.15%
27,086 - 72,617
11.16%
72,617 - 153,783
13.16%
153,783 and up
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
Uruguay
Czech Republic
France
Chile
Myanmar
South Africa
66.17%
34.12%
34%
28.5%
3.35%
3%
2%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Netherlands
Montenegro
France
Indonesia
Azerbaijan
Myanmar
45%
27.65%
24%
16.1%
4%
3%
2%

Minimum Wage

General

€10.03 per hour or €1,521.22 per month.

Minimum wage (per month)
$2391
$2025
$1996
$1693
$49.14
$47
$41
Luxembourg
Victoria
New South Wales
France
Jamaica
Malawi
Ghana
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

Salaries are paid on monthly basis for work between the first to last day of the month. Paydays are at the end of each month.

Working Hours

General

Full time employment is considered 35 hours weekly.

Overtime

Employees must not work more then 48 hours weekly, 44 hours per week during 12 consecutive weeks, and 10 hours a day.

Payroll Contributions

Social Security

Employers contribute 47.45% of workers wages. The social security ceiling has been raised to 39,732 EUR annually (from 29,228 EUR), and 3,311 EUR monthly (from 3,269 EUR).

Pension Fund

As of January 1st, 2019, the Agric and Arrco have merged into one plan.

  • Bracket 1: for salaries up to the social security ceiling. Employer – 4.72% Employee – 3.15% CEG (Overall balance contribution) Employer – 1.29% Employee – 0.86%
  • Bracket 2: for salary between 1 and 8 times the social security ceiling. Employer – 12.95% Employee – 8.64% CEG (Overall balance contribution) Employer – 1.62% Employee – 1.08%
Disability Pension

Disability – Social Security pays 50% of the salary until a ceiling (slice A = 3311 € for 2018) for a max of 3 years. After this period, once the indemnity is no longer 100%, Novalis completes the salary (on top of the Social Security) to min 75% and max 90% of the salary. The percentage is dependent on the number of children, a work or non-work related accident or maternity leave. For long term disability (after 3 years), employees are paid by Social Security.

On top of this, Novalis pays a percentage of the salary. The payout percentage is dependent on the type of disability. In the event of death, beneficiaries receive a capital or a widowhood pension. This amount is calculated by the gross salary and different formulas that can be chosen (lump sum or lump sum + educational annuity).

Health Insurance

The universal healthcare system covers all residents through social security contributions and taxes. The universal system covers about 70%-80% of medical cost with the remainder being paid by supplementary private health insurances. These private health insurances are either paid out-of-pocket, or if employed, by their employer.

Leave

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Myanmar
Austria
Brazil
France
Trinidad & Tobago
Shanghai
Federal
30
16
46
30
13
43
30
13
43
25
11
36
13
13
11
11
10
10
Maternity Leave

Maternity leave is provided depending on the number of children. 

  • 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.
Maternity leave (days)
410
365
365
112
50
45
0
Bulgaria
Montenegro
Serbia
France
Qatar
United Arab Emirates
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

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

• Monthly average of last 12 months of employment
• Average monthly earnings of all months preceding dismissal
• One third of the last three months

VAT

General

20% standard rate.

Stay up to date on payroll & employment law changes

Questions & Answers

Ask a new question

Cancel
See how Papaya Global can help you automate your global payroll or PEO whilst staying 100% compliant with local labor laws