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%
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
|GROSS INCOME||PROGRESSIVE TAX RATE|
|Up to €10,225||0|
|€710,226 - €26,070||11%|
|€26,071 - €74,545||30%|
|€74,546 - €160,336||41%|
|More than €160,336||45%|
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
While the person is in France, 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.
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.
As with every other country, there are certain costs associated with employing a worker in France that come on top of the gross salary you are offering. In France those are Social security, Work accident insurance, Forfait Social, and Transportation tax. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.
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:
In France, both employers and employees have to pay taxes. For employers, these include Social security, work accident insurance, forfait social, and transportation tax and for employees, they include income tax, social security, supplemental pension, and Contribution d’Equilibre Général. To get a clear overview of both employee and employer taxes, use our salary breakdown calculator, submitting any additional data needed and get a downloadable pdf like this one.