Payroll & Employment Guide France flag

Payroll & Employment Guide France

France stands out as one of the top hiring destinations in Europe, thanks to its highly educated workforce, strong social security system, and well-established employee protection laws. With a widely developed business infrastructure and growing innovation hubs across the country, France offers international companies a stable and talent-rich environment for building and scaling their teams.

Payroll & Employment Guide France
CurrencyEuro (EUR)
LanguagesFrench
Minimum wage€11.88 per hour
Employment cost25-45%
Working hours35 hours per week
VAT20%
Probation periodFrom 1 to 4 months
Paid leave days30 days per year
Categories

Hiring guide

While France is one of the key destinations for global hiring in Europe, navigating its complex employment frameworks requires a solid understanding of local regulations.

French labour laws place a very strong emphasis on employee protections, with very strict rules about employment contracts, working hours, paid leave, and termination procedures. Employers must also comply with mandatory social security contributions and often consider industry-specific collective agreements.

Want to learn more about salaries, employment costs, and legal rules for hiring in France? Get our full hiring guide now!

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Employment contracts

Employment contracts in France can be either for an indefinite or for a fixed-term period. Regardless of the duration, employment relationships must be formalised through written contracts, except for the indefinite-term contract.

Notice periods: From zero to two months.

Termination of employment: For personal or economic reasons; must be justified, documented, and fair.

Want to learn more details about employment contracts in France ? Get our full template now!

Employee benefits

Employers in France are typically required to provide health, pension, and unemployment insurance, as well as paid time off. Many of them also offer extra perks to stay competitive in the job market. Understanding both of them is essential to attracting and retaining talent.

  • Mandatory benefits: Health, pension, and unemployment insurance.
  • Common perks: Meal vouchers, transport reimbursements.
  • Leave policies: Paid leave, sick leave, maternity/paternity leave.

Curious about all the employment benefits available in France?

Taxes

France has a well-structured tax and social security system that employers must strictly follow. Employers are responsible for withholding income tax from their employees’ salaries and contributing to a range of mandatory social security schemes. Additional rules may apply to royalty income and VAT.

Personal income tax rate: From 0% to 45%.

VAT: 20%

Tax allowances: Work from home allowance.

Additional tax reliefs: Alimony payments, childcare expenses, employment-related expenses, and others.

Want to explore more details about tax allowances and similar tax regulations in France?

Payroll

Employees in France must receive monthly salaries, and they must be aligned with the terms set out in the employment contract. Employers are required to comply with minimum wage laws, withhold income tax, and deduct contributions for social security.

Salary payment deadline: The last working day of the month/the first working day of the following month.

Payroll declarations deadline: 5th or 15th of the month, depending on the company size.

Payroll currency: Euro

Want to explore more detailed regulations about payroll, salaries, and contributions in France?

Work permits & visas

Foreign nationals who want to work in France must obtain the proper work permits and visas. The specific type of permit, application process, and associated costs vary based on the individual’s nationality, job position, and duration of stay.

Types of permits: EU Blue card

Process length: Two to three months

Process cost: €4000

Need more information about how to obtain visas and work permits in France? Get our full country handbook now, or click here to find out more!

EOR services

Using EOR services in France lets you legally employ individuals in the country without opening legal entities. The EOR takes over all the legal responsibilities as an official employer, including:

  • Legal employment and contracts
  • Payroll processing
  • Tax withholding
  • Benefits administration
  • Onboarding/offboarding employees

PEO services

PEO services in France provide you with HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in France but need support to manage their workforce operations, including:

  • HR support and workforce administration
  • Payroll and benefits management
  • Compliance and local labour law guidance
  • Employment contracts assistance

Payroll calculator

With Native Teams’ locally adjusted payroll calculator, you can easily estimate net and gross salaries, employer/employee contributions, and other mandatory deductions in France.

Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.

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Frequently asked questions

When hiring freelancers or gig workers in France, it’s essential to make sure that the working relationship remains truly independent. French authorities closely monitor contractor arrangements to prevent disguised employment, which can lead to legal and financial consequences.

Freelancers are responsible for their own taxes and social contributions, and they typically operate under a self-employed status. Hence, it’s necessary to make sure that contracts clearly define the scope of work, timelines, and payment terms.