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Country Guide

France

Hire in France at a glance

CURRENCY
€ Euro / EUR
WORKING HOURS
35 hours / week
PUBLIC/BANK HOLIDAYS
11 days per year
CAPITAL
Paris
LOCAL LANGUAGE
French
REMOTE WORKERS
4,766,000
MINIMUM HOURLY SALARY
€ 10.57
TAX YEAR
1st Jan - 31st Dec.
DATE FORMAT
DD / MM / YYYY
MISCLASSIFICATION PENALTIES
up to €45,000 for the company’s legal representative and a fine of up to €225,000 for the company as a legal entity
FUN FACT
France provides the second highest level of employment benefits in the world

Employer taxes: 

28.4% - 60.5%

Social security:  26.5% - 33.7%

Work accident insurance: 1.9% - 2.2%

Forfait Social (only for certain remunerations): 8% - 20%

Transportation tax (only for companies with 11 or more employees based in Paris and its surroundings): 2.95%

Employee tax: 

31.3% - 75.7%

Social security: 17%

Supplemental pension: 3.1% - 8.1%

Contribution d’Equilibre Général (CEG): 1.29% - 1.62%

Income tax is assessed using the household's total income. 3-4% applies for high earners

Income tax

GROSS INCOMEPROGRESSIVE TAX RATE
Up to €10,2250
€710,226 - €26,07011%
€26,071 - €74,54530%
€74,546 - €160,33641%
More than €160,33645%

Salary Calculations

Use our handy calculator to understand what are all the employment costs you have to consider in France.

Provide us with some extra details and we will send you a full breakdown of the salary costs.

Employer of Record in France

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An Employer of Record (Portage Salarial in France) is the legal employer of a worker in France. As such, the Employer of Record takes care of all France compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.

the Portage Salarial is responsible for:

Ensuring their employment is compliant with local employment laws
Processing local payroll
Filing employment related taxes and returns
Issuing payslips to the employee
Distributing salary payments

How Portage Salarial works

COMPANY

Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

BOUNDLESS

Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

EMPLOYEE

The third party to the agreement, the employee, fulfils all of their obligations as a worker for the company.

Statutory Employee Benefits

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Medical coverage
Life insurance
Public transportation
Pension
Work injury insurance
Profit-sharing
Medical examination
Termination indemnities

Common Non-mandatory Employee Benefits

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Work from home
Training
Supplementary health insurance
Stock options
Meal vouchers
Paid relocation
Wellbeing
Flexible working hours
Gym membership
Public transportation reimbursement
Cash bonus
Additional days off
Additional parental leave
Supplementary pension
Visa sponsorship

Employee Rights and Protections

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Employment contract signed by both the employer and the employee
Payslip
Remote work
Workload revision meeting
Whistleblower protection
Works council benefits
Right to Disconnect
Unemployment allowance
Redeployment leave

Paid time off: 30 working days 

Paternity leave: 28 days

Sick leave: up to 1 year

Parental: 1 year, which can be extended

Maternity leave: 16 weeks

Probation Period

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The probationary period in France can be anywhere between 2 to 4 months.Employers have to include the conditions of any probationary period and its duration in the contract.

Payment Frequency

The payment frequency in France is at least once a month.

End of Employment

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France does not recognise termination at will and has strict laws that make ending employment more bureaucratic than most countries. There are a few situations where an employer is permitted to dismiss an employee, however, they require severe cause:

- Economic reasons (redundancy)

- Personal reasons (poor performance, misconduct)

- Mutual consent upon signing a termination contract.

Also an employer may end employment during probation period without additional compensation, but they must respect the notice period (or pay it in lieu).

Apart from termination due to serious and gross misconduct, employees are entitled to a severance package.

A judge may challenge the dismissal.

Frequently Asked Questions

What are my options if I want to hire a worker in France?

While there are generally four ways of employing people across borders, not all are legal or sensible. Here is an overview of each way to employ a worker in Ireland, outlining the potential cons.
 

HQ country employment & payroll

While the person is in Ireland, they are employed and payrolled directly by the company’s HQ entity.
Cons: This may appear attractive, but it generally isn't legal in the long term. HQ payroll won't be possible if the person is not a tax resident in the HQ country.

Independent contractor agreements

 
People are locally registered as sole traders or limited liability company owners in Ireland and invoice for their work. There is no direct employment relationship.
Cons: In France, this is not a compliant or legal way to engage full-time workers who work solely for your company. There will be challenges in attracting and retaining talent.
 

Direct local employer setup

 
The company sets up as a fully-compliant local employer. This often involves setting up a local entity and local tax registration.
Cons: Expensive, time-consuming, and with high-level of complexity. Unknowns around how obligations and costs will evolve over time. There will be a need to stay on top of changes in regulations.
 

Partnering with an Employer of Record France

 
Employment is handled by a platform that specialises in employing people on behalf of customer companies. The Employer of Record, which in France is known as Portage Salarial, helps to hire and pay employees.
Cons: For some countries, the ongoing costs may be higher than direct employment. Some education is needed to inform employees about how the employment relationship will work.

How long does it take to set up a company in France?

Setting up a local company in France is very time consuming and complicated. That is further complicated by the monthly activities - payroll needs to be calculated and run every month, taxes filed, benefits extended, change of rules and regulations followed. Here is an overview of everything you will find yourself needing to do.

Can I employ people as independent contractors in France?

While many employers practice employing remote workers as independent contractors, it's a bad practice. If an individual is giving their full and undivided attention to your company in France, treating them as an independent contractor is a likely breach of French employment laws and of those in your country.
 
Your company could be liable for fines on owed holiday pay, sick pay, social welfare payments, paternity benefit, maternity benefit, or other legal measures. Since the individuals you are working with do not receive the benefit of local employment laws and protections that are often afforded to people working full-time hours.

What does HR compliance mean in France and why does it matter?

When you hire employees in France, you have certain obligations as an employer. HR compliance is about ensuring your policies and procedures respect all applicable laws and regulations regarding employment and work practices. Complying with local employment law in France is fundamental for the correct running of your business - not only because these laws are in place to protect employees and guarantee their rights are safeguarded, but to minimise your risk of liabilities as an employer. Being compliant means respecting and following all local labour laws, sick leave and illness benefits, annual leave, minimum wage, tax credits, working hours regulations.

What does Employer of Record mean in France?

In France, the model for employing a worker on behalf of another company is called Portage Salarial. Employing someone through Portage Salarial means that Boundless is the legal employer of the individual, as far as the French government, tax, and employment authorities are concerned. We are responsible for:

  • informing you about any pre-employment requirements
  • ensuring their employment is compliant with Irish employment law
  • informing you about the length of the maternity leave, paternity leave, public holidays, illness benefits, medical benefits
  • providing a locally compliant employment contract
  • processing local payroll
  • filing employment-related tax returns
  • issuing payslips to the employee
  • distributing salary payments
  • payments to the local tax authorities
Customers that work with Portage Salarial are responsible for:
  • sourcing and recruiting their own workers
  • managing the employee’s day-to-day work load
  • contributing to the personal / professional development of the employee through their work
  • following any guidance we give on employment and HR best practices or legal obligations in France, such as the employment contract, public holidays, annual leave, sick leave, maternity and paternity benefits, probationary periods, overtime pay, statutory redundancy payments, liability insurance and many others
  • ensuring that payroll bills relating to their team are paid to Boundless before the cut-off point in each pay cycle

Who is responsible for filing and paying employees' taxes and social insurance contributions in Ireland if employing through an Employer of Record (Portage Salarial in France)?

Boundless as the Employer of Record France (Portage Salarial) files all pertinent taxes and social security contributions as they relate to the compliant employment of an individual in France.

How does Boundless as an Employer of Record (Portage Salarial in France) ensure HR compliance in France?

We carefully choose employment lawyers or advisories to partner with in each country we operate in, including France. They ensure the France employment contracts, and any other relevant documents required for new employees comply with the local jurisdiction. We have thorough discussions on specific norms such as payroll services, social protection, data protection, notice period or work-from-home regulations. Whenever a potentially sensitive issue arises in France, our internal team contacts the relevant firm to ensure all steps are taken to resolve it promptly.

What are the legal responsibilities of a company when they use an Employer of Record (Portage Salarial) service like Boundless in France?

The company remains responsible and informs employees of the day-to-day management of the people and teams that are employed through Boundless, including any disciplinary or performance issues.
 
Boundless ensures compliance with French-specific procedures, practices and labour laws while employing people and teams on behalf of the company.

Do employees get all their rights and benefits when employed through an Employer of Record (Portage Salarial) in France?

Any new employee that is locally employed through an Employer of Record (Portage Salarial in France) gets full employment rights and benefits as specified in Irish employment law. They get a locally compliant employment contract, statutory maternity leave, annual leave, illness benefits, any relevant tax credit, and many more. All France-based employees receive healthcare through the public healthcare system.
Choose Boundless as your employment partner in France
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info@boundlessHQ.com
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