Good to know
Local Currency: Euro (EUR)
Minimum Salary: 1,801.80 € gross/month | 1,426.30 € net/month (Source: service-public.fr).
Salary Payment: monthly
Salary Calculation: gross to net
Legal Working Hours: 35 hours/week (this may vary according to collective labour agreements).
About France
France is part of Europe. It has more than 67 million residents. The country offers excellent opportunities as the EU’s second-largest economy and export power. For an employer, there are several challenges in doing business in France because of the complex social security system. The general plan is based on a hierarchy of national, regional and local organisations, structured by nature of risk, managed on a parity basis and placed under the supervision of the Ministries in charge of social security (Ministry of Solidarity and Health and Ministry of Economy, Finance and Industrial and Digital Sovereignty). Understanding French legislation when it comes to HR and payroll is crucial to ensure compliance.
Ready to Benefit from French HR & Payroll Experts?
Income Tax in France
Since January 2019, income tax is deducted at source by the tax authorities in France. For a large majority of French taxpayers, income tax is composed of personal income tax (IRPP), the generalised social contribution (CSG) and the contribution for the reimbursement of the social debt (CRDS), the latter two forming the social levies.
To find out the amount to be deducted, the taxpayers makes their declaration in the spring of their annual income for the previous year and send it to the tax authorities. The declaration is made as follows: gross annual income minus dependants, deductible expenses, expenses giving entitlement to a tax credit, etc. Once the declaration is done, the taxpayers know their tax rate.
On January 1 of the following year, the rate is applied to the salary and appears on the pay slip. Any change in personal circumstances (marriage, birth, etc.) must be reported immediately to the tax authorities, which will change the rate of deduction. It is also possible to choose a personalised rate.
Withholding tax rates
Table of default withholding tax rates applicable to taxpayers domiciled in mainland France in 2024
Source: bofip.impots.gouv.fr
The French Social Protection System
The French social protection system is essentially composed of statutory plans:
- General plan covers employees and self-employed (non-agricultural) workers as well as other categories (students, beneficiaries of universal protection, residence-based illness).
- Plan specific to salaried and non-salaried workers in the agricultural sector, which covers these workers against all risks
- Special plans for certain non-agricultural employees provide protection against certain specific risks or all risks.
- Autonomous basic old-age plans are supplemented by compulsory supplementary plans.
- Unemployment plan covers all employed persons. It is managed by joint bodies.
- Supplementary pension plan (AGIRC-ARRCO), which is compulsory for all private sector employees covered by the general or agricultural plan and which supplements the basic plans.
Employer & Employee Contributions
Social security and unemployment contribution rates
Notes
Employer's contribution rate for health, maternity, disability and death insurance
(1) For employers eligible for the general reduction, the rate of the employer’s contribution to “health, maternity, disability and death insurance” is set at 7% for their employees whose remuneration does not exceed 2.5 times the amount of the minimum wage in force on 31 December 2023.
Social security ceiling
(2) The monthly social security ceiling in 2022 is identical to those of 2021 and 2020 (€3,428).
Accidents at work
(3) The rate varies according to the size and risks of the companies.
Family allowances
(4) The rate of 3.45% applies to companies eligible for the general reduction in contributions and for annual remuneration less than or equal to 3.5 times the minimum wage.
CRDS & CSG
Social contributions in France
(5) The Social Security Financing Act for 2018 increased the CSG rate applicable to earned income by 1.7 percentage points (from 7.5% to 9.2%) and the one applicable to retirement and disability pensions. For these pensions, law n°2018-1213 of 24 December 2018 on emergency economic and social measures introduced a new intermediate rate, bringing to 4 the different rates applicable according to the reference tax income (RFR) of the year N-2. Persons who are affiliated to the French system but who are not domiciled in France for tax purposes are not subject to the CSG and CRDS. However, they are liable to pay a health insurance contribution, employee’s share, at the rate of 5.5% on their full salary. The CSG and CRDS at the respective rates of 6.2% and 0.5% are also levied on replacement income (daily allowances, unemployment benefits, etc.).
Unemployment
(6) The ceiling applied corresponds to 4 monthly social security ceilings (4 x €3,864).
AGS: association for the management of the employee debt guarantee plan. Exclusively payable by the employer, it finances the wage guarantee plan which, in the event of receivership or judicial liquidation, ensures the payment of employees’ wages, notice and compensation.
Supplementary pensions (Agirc-Arrco plans)
(7) On January 1, 2019, the Agirc and Arrco plans merged. Compulsory supplementary pension contributions are now calculated on the basis of two brackets for all employees, whether executives or non-executives:
- The first bracket is between the first euro and the amount corresponding to a Social Security ceiling,
- The second bracket is between the amount of the Social Security ceiling and the amount corresponding to 8 Social Security ceilings.
The contribution call rate (127%) generates additional contributions without increasing the pension entitlement. Points are calculated on the basis of the contractual rate. For bracket 1, whose overall rate is 7.87%, only 6.20% is taken into account to calculate the employee’s pension points. The rest contributes to the financing of the plan.
In addition to the contributions indicated:
- the APEC contribution, which concerns only executive employees, on remuneration limited to 4 times the social security ceiling. Its overall rate is 0.06%.
- The CET (Contribution for technical equilibrium), which applies to executives and non-executives whose remuneration exceeds the monthly social security ceiling (employee share of 0.14% and employer share of 0.21%)
Source : The Cleiss
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in France.
Our Payroll and HR services in France
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in France
HR & Payroll in France
Good to know
Local Currency: Euro (EUR)
Minimum Salary: 1,801.80 € gross/month | 1,426.30 € net/month (Source: service-public.fr).
Salary Payment: monthly
Salary Calculation: gross to net
Legal Working Hours: 35 hours/week (this may vary according to collective labour agreements).
Ready to Benefit from French HR & Payroll Experts?
About France
France is part of Europe. It has more than 67 million residents. The country offers excellent opportunities as the EU’s second-largest economy and export power. For an employer, there are several challenges in doing business in France because of the complex social security system. The general plan is based on a hierarchy of national, regional and local organisations, structured by nature of risk, managed on a parity basis and placed under the supervision of the Ministries in charge of social security (Ministry of Solidarity and Health and Ministry of Economy, Finance and Industrial and Digital Sovereignty). Understanding French legislation when it comes to HR and payroll is crucial to ensure compliance.
Income Tax in France
Since January 2019, income tax is deducted at source by the tax authorities in France. For a large majority of French taxpayers, income tax is composed of personal income tax (IRPP), the generalised social contribution (CSG) and the contribution for the reimbursement of the social debt (CRDS), the latter two forming the social levies.
To find out the amount to be deducted, the taxpayers makes their declaration in the spring of their annual income for the previous year and send it to the tax authorities. The declaration is made as follows: gross annual income minus dependants, deductible expenses, expenses giving entitlement to a tax credit, etc. Once the declaration is done, the taxpayers know their tax rate.
On January 1 of the following year, the rate is applied to the salary and appears on the pay slip. Any change in personal circumstances (marriage, birth, etc.) must be reported immediately to the tax authorities, which will change the rate of deduction. It is also possible to choose a personalised rate.
Withholding Tax Rates
Table of default withholding tax rates applicable to taxpayers domiciled in mainland France in 2024
Source: bofip.impots.gouv.fr
The French Social Protection System
The French social protection system is essentially composed of statutory plans:
- General plan covers employees and self-employed (non-agricultural) workers as well as other categories (students, beneficiaries of universal protection, residence-based illness).
- Plan specific to salaried and non-salaried workers in the agricultural sector, which covers these workers against all risks
- Special plans for certain non-agricultural employees provide protection against certain specific risks or all risks.
- Autonomous basic old-age plans are supplemented by compulsory supplementary plans.
- Unemployment plan covers all employed persons. It is managed by joint bodies.
- Supplementary pension plan (AGIRC-ARRCO), which is compulsory for all private sector employees covered by the general or agricultural plan and which supplements the basic plans.
Social contributions in France
Employer & Employee Contributions
Social security and unemployment contribution rates
Notes
Employer's contribution rate for health, maternity, disability and death insurance
(1) For employers eligible for the general reduction, the rate of the employer’s contribution to “health, maternity, disability and death insurance” is set at 7% for their employees whose remuneration does not exceed 2.5 times the amount of the minimum wage in force on 31 December 2023.
Social security ceiling
(2) The monthly social security ceiling in 2024 is 3,864€.
Accidents at work
(3) The rate varies according to the size and risks of the companies.
Family allowances
(4) The rate of 3.45% applies to companies eligible for the general reduction in contributions and for annual remuneration less than or equal to 3.5 times the minimum wage.
CRDS & CSG
(5) The Social Security Financing Act for 2018 increased the CSG rate applicable to earned income by 1.7 percentage points (from 7.5% to 9.2%) and the one applicable to retirement and disability pensions. For these pensions, law n°2018-1213 of 24 December 2018 on emergency economic and social measures introduced a new intermediate rate, bringing to 4 the different rates applicable according to the reference tax income (RFR) of the year N-2. Persons who are affiliated to the French system but who are not domiciled in France for tax purposes are not subject to the CSG and CRDS. However, they are liable to pay a health insurance contribution, employee’s share, at the rate of 5.5% on their full salary. The CSG and CRDS at the respective rates of 6.2% and 0.5% are also levied on replacement income (daily allowances, unemployment benefits, etc.).
Unemployment
(6) The ceiling applied corresponds to 4 monthly social security ceilings (4 x €3,864).
AGS: association for the management of the employee debt guarantee plan. Exclusively payable by the employer, it finances the wage guarantee plan which, in the event of receivership or judicial liquidation, ensures the payment of employees’ wages, notice and compensation.
Supplementary pensions (Agirc-Arrco plans)
(7) On January 1, 2019, the Agirc and Arrco plans merged. Compulsory supplementary pension contributions are now calculated on the basis of two brackets for all employees, whether executives or non-executives:
- The first bracket is between the first euro and the amount corresponding to a Social Security ceiling,
- The second bracket is between the amount of the Social Security ceiling and the amount corresponding to 8 Social Security ceilings.
The contribution call rate (127%) generates additional contributions without increasing the pension entitlement. Points are calculated on the basis of the contractual rate. For bracket 1, whose overall rate is 7.87%, only 6.20% is taken into account to calculate the employee’s pension points. The rest contributes to the financing of the plan.
In addition to the contributions indicated:
- the APEC contribution, which concerns only executive employees, on remuneration limited to 4 times the social security ceiling. Its overall rate is 0.06%.
- The CET (Contribution for technical equilibrium), which applies to executives and non-executives whose remuneration exceeds the monthly social security ceiling (employee share of 0.14% and employer share of 0.21%)
Source : The Cleiss
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in France.
Our Payroll and HR services in France
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: Euro (EUR)
Minimum Salary: 1,801.80 € gross/month | 1,426.30 € net/month (Source: service-public.fr).
Salary Payment: monthly
Salary Calculation: gross to net
Legal Working Hours: 35 hours/week (this may vary according to collective labour agreements).
Ready to Benefit from French HR & Payroll Experts?
About France
France is part of Europe. It has more than 67 million residents. The country offers excellent opportunities as the EU’s second-largest economy and export power. For an employer, there are several challenges in doing business in France because of the complex social security system. The general plan is based on a hierarchy of national, regional and local organisations, structured by nature of risk, managed on a parity basis and placed under the supervision of the Ministries in charge of social security (Ministry of Solidarity and Health and Ministry of Economy, Finance and Industrial and Digital Sovereignty). Understanding French legislation when it comes to HR and payroll is crucial to ensure compliance.
Income Tax in France
Since January 2019, income tax is deducted at source by the tax authorities in France. For a large majority of French taxpayers, income tax is composed of personal income tax (IRPP), the generalised social contribution (CSG) and the contribution for the reimbursement of the social debt (CRDS), the latter two forming the social levies.
To find out the amount to be deducted, the taxpayers makes their declaration in the spring of their annual income for the previous year and send it to the tax authorities. The declaration is made as follows: gross annual income minus dependants, deductible expenses, expenses giving entitlement to a tax credit, etc. Once the declaration is done, the taxpayers know their tax rate.
On January 1 of the following year, the rate is applied to the salary and appears on the pay slip. Any change in personal circumstances (marriage, birth, etc.) must be reported immediately to the tax authorities, which will change the rate of deduction. It is also possible to choose a personalised rate.
Withholding Tax Rates
Table of default withholding tax rates applicable to taxpayers domiciled in mainland France in 2024
Source: bofip.impots.gouv.fr
The French Social Protection System
The French social protection system is essentially composed of statutory plans:
- General plan covers employees and self-employed (non-agricultural) workers as well as other categories (students, beneficiaries of universal protection, residence-based illness).
- Plan specific to salaried and non-salaried workers in the agricultural sector, which covers these workers against all risks
- Special plans for certain non-agricultural employees provide protection against certain specific risks or all risks.
- Autonomous basic old-age plans are supplemented by compulsory supplementary plans.
- Unemployment plan covers all employed persons. It is managed by joint bodies.
- Supplementary pension plan (AGIRC-ARRCO), which is compulsory for all private sector employees covered by the general or agricultural plan and which supplements the basic plans.
Social contributions in France
Employer & Employee Contributions
Social security and unemployment contribution rates
Notes
Employer's contribution rate for health, maternity, disability and death insurance
(1) For employers eligible for the general reduction, the rate of the employer’s contribution to “health, maternity, disability and death insurance” is set at 7% for their employees whose remuneration does not exceed 2.5 times the amount of the minimum wage in force on 31 December 2023.
Social security ceiling
(2) The monthly social security ceiling in 2024 is 3,864€.
Accidents at work
(3) The rate varies according to the size and risks of the companies.
Family allowances
(4) The rate of 3.45% applies to companies eligible for the general reduction in contributions and for annual remuneration less than or equal to 3.5 times the minimum wage.
CRDS & CSG
(5) The Social Security Financing Act for 2018 increased the CSG rate applicable to earned income by 1.7 percentage points (from 7.5% to 9.2%) and the one applicable to retirement and disability pensions. For these pensions, law n°2018-1213 of 24 December 2018 on emergency economic and social measures introduced a new intermediate rate, bringing to 4 the different rates applicable according to the reference tax income (RFR) of the year N-2. Persons who are affiliated to the French system but who are not domiciled in France for tax purposes are not subject to the CSG and CRDS. However, they are liable to pay a health insurance contribution, employee’s share, at the rate of 5.5% on their full salary. The CSG and CRDS at the respective rates of 6.2% and 0.5% are also levied on replacement income (daily allowances, unemployment benefits, etc.).
Unemployment
(6) The ceiling applied corresponds to 4 monthly social security ceilings (4 x €3,864).
AGS: association for the management of the employee debt guarantee plan. Exclusively payable by the employer, it finances the wage guarantee plan which, in the event of receivership or judicial liquidation, ensures the payment of employees’ wages, notice and compensation.
Supplementary pensions (Agirc-Arrco plans)
(7) On January 1, 2019, the Agirc and Arrco plans merged. Compulsory supplementary pension contributions are now calculated on the basis of two brackets for all employees, whether executives or non-executives:
- The first bracket is between the first euro and the amount corresponding to a Social Security ceiling,
- The second bracket is between the amount of the Social Security ceiling and the amount corresponding to 8 Social Security ceilings.
The contribution call rate (127%) generates additional contributions without increasing the pension entitlement. Points are calculated on the basis of the contractual rate. For bracket 1, whose overall rate is 7.87%, only 6.20% is taken into account to calculate the employee’s pension points. The rest contributes to the financing of the plan.
In addition to the contributions indicated:
- the APEC contribution, which concerns only executive employees, on remuneration limited to 4 times the social security ceiling. Its overall rate is 0.06%.
- The CET (Contribution for technical equilibrium), which applies to executives and non-executives whose remuneration exceeds the monthly social security ceiling (employee share of 0.14% and employer share of 0.21%)
Source : The Cleiss
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in France.
Our Payroll and HR services in France
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure