How to hire and pay employees in France

Income tax is levied at a progressive rate, with family coefficient rules being applied to combine the progressive tax with the taxpaying capacity of the household. Married individuals or those under a civil union are jointly taxed based on the combined income of their household members, including dependents.

Under this system, the taxable income to which the income tax rates apply are determined by dividing it by the following number of allowances:

The final tax liability is then calculated by multiplying the tax computed for one allowance by the number of allowances claimed.

Taking into account the above allowances, the personal income tax rates for taxpayers are set as follows:

Additional Surtax

High income earners are liable to pay additional surtax, calculated on the following portion of their taxable income:

Social Surcharges

Generalized Social Contributions (CSG) and Social Debt Repayment Contribution (CRDS) apply to all resident taxpayers at the following rates:

Both CSG and CRDS are calculated based on 98.25% of income that does not exceed 4 times the annual social security wage ceiling, and 100% of income thereafter.

The information presented in this section and its sub-sections are simple estimates and does not consider the different rates that may apply for establishments in Alsace-Moselle. For a comprehensive breakdown of each contributory components and other obligations, refer to the Urssaf Portal.

The following contributions are calculated based on either the employee's total remuneration or up to the applicable social security wage ceiling (PMSS).

Employer Contributions

Additional Employer Contributions

Under the portage salarial collective agreement, employers are required to make the following contributions in addition to the aforementioned components:

Employee Contributions

In general, the payment of salary shall be made once per month. However, in the case of seasonal, temporary, intermittent or home-based employees, the payment should be made at least twice a month.

Employees in the private sector who take public transport to get to their place of work are entitled to partial reimbursement of its cost. However, do note that tickets purchased individually are non-refundable, and only subscription cards are paid for by the employer, which can be taken on an annual, monthly or weekly basis.

Generally, the coverage is at 50% of the 2nd class fare on the basis of the shortest route. More information surrounding other refund conditions and tax-related matters can be accessed here.

There is no at-will termination in France. Employers looking to unilaterally dismiss their employees must be able to justify their reasons for doing so.

Following the proper procedure for dismissal is important even if the reasons for dismissal can be duly justified. Otherwise, the dismissal will be deemed an irregular dismissal.

Employees may freely hand in their resignation without specifying any reasons, provided that their decision is clearly and unequivocally based on their own will.

Notice Period

Employers dismissing an employee shall observe the following notice period unless the dismissal is due to the employee's gross negligence, misconduct or incapacity:

Employees can request to be released from their notice period and mutually agree on a date for when the employment contract will terminate without the employer being required to make payment in lieu of notice.

Severance Pay

Permanent employees with at least 8 months of uninterrupted service who are being dismissed for personal or economic reasons are entitled to receive the following severance, provided that they are not dismissed for serious misconduct:

Probation period in France is not mandatory, but shall be binding if provided under an employment contract or letter of engagement.

The statutory maximum duration of probation period varies according to the type of employment contract (CDI, CDD, Interim), as follows:

Employment contracts can be terminated freely during probation period, provided that the following notice period is observed:

Note: The notice period for dismissal is only applicable if the employment contract includes a probation period of at least 1 week.

Standard Working Hours

Standard working hours is subject to a maximum of 35 hours per week, 151.67 hours per month and 1,607 hours per year. Any hours in excess of these standard hours are considered overtime.

Break Period

Employees are entitled to have at least 20 consecutive minutes of break for every 6 consecutive hours worked. This can be granted immediately after or during the 6-hour work period.

Furthermore, female employees are entitled to take an hour of unpaid breastfeeding break per day within a year of childbirth. This shall be divided into 2 equal portions of break time in the morning and afternoon.

Overtime

Overtime hours is subject to a maximum of 220 hours per year, provided that total working hours does not exceed the prescribed daily and weekly maximums.

Maximums daily and weekly working hours can be exceeded under certain exceptional circumstances, usually requiring the approval of the labor inspectorate. Similarly, under very limited circumstances, employees may work overtime in excess of the annual threshold.

Overtime are paid at 125% of the employee's gross salary for the first 8 hours in the week and 150% for any hours thereafter unless otherwise provided in a collective agreement. This may be replaced, in whole or in part, by compensatory rest equivalent to the increased remuneration.

Weekly Rest Days

Employees are entitled to at least 11 hours of rest in between work days and to at least 35 consecutive hours of rest per week, effectively meaning that they shall not work more than 6 days a week.

In most cases, employees are given both Saturdays and Sundays off, though Sunday is the legal rest day. These rest period can generally be postponed, reduced or abolished if certain conditions are met.

Public Holidays

Employees who have completed at least 3 months of service shall not see any loss of salary for their absence during public holidays. There are 11 days of public holiday in France for 2025.

Out of all the public holidays, only Labor Day is a mandatory day-off, while the rest are determined by the relevant collective or company agreements, or by the employer. Moreover, a bridge day preceding or following a public holiday may be scheduled by the employer, though this practice is not mandatory.

Employees may be required to work on mandatory public holidays if the nature of their work does not allow interruptions, provided that the employee is paid double.

Note: Public holidays may be different in Alsace-Moselle and Overseas France territories. More information on the dates can be accessed here.

Annual Leave

All employees shall be entitled to paid annual leave that accumulates at 2.5 working days per month of actual work during the reference period (June 1–May 31), which corresponds to 30 working days of annual leave for a complete year of service.

Furthermore, additional leave days may be granted depending on the employee's age and whether they have dependent children under their care.

Annual leave that has been accrued must generally be taken during a leave period that includes the span from May 1 to October 31, and cannot be carried over to the following periods.

Employees who fail to use up 24 working days of their annual leave entitlement during the abovementioned interval shall be entitled to additional leave days, as follows:

In any case, the employee must take at least 12 consecutive days of leave between May 1 and October 31, and they cannot ask to take more than 24 consecutive days of leave unless otherwise permitted by the Law.

The calculation of the annual leave pay shall be based on either the 1/10e calculation method or the maintenance of wages calculation method, whichever yields the higher pay.

Sick Leave

Employees who falls sick may take sick leave and receive daily allowances from the relevant social security body. More information on the eligibility requirements to receive this allowance, how they are calculated and other associated matters can be accessed here.

In addition to the above, employees who have been employed for at least a year and have fulfilled their reporting obligations may also receive supplementary allowances from their employers. This is only applicable to employees who also benefits from the social security allowances.

In any case, the supplementary allowances from employers generally commences after a 7-day waiting period, and is calculated as follows, minus any social security allowances the employee is also entitled to:

Maternity Leave

Employees are entitled to the following maternity leave, provided they have fulfilled their reporting obligation to both their employers and the relevant social security body:

Maternity leave may be extended in the event of multiple births, pathological pregnancies, premature births, late delivery and the birth of a sick child or a child who dies at birth.

Employees on their maternity leave shall have their employment contract suspended and be paid an allowance by the relevant social security body if they are eligible.

Paternity Leave

Employees are entitled to 25 calendar days of paternity leave, provided they have fulfilled their reporting obligation to both their employers and the relevant social security body. This leave shall be distributed as follows:

Paternity leave may be extended in the event of multiple births or if the child is hospitalized at birth.

Employees on their paternity leave shall have their employment contract suspended and be paid an allowance by the relevant social security body if they are eligible.

Parental Leave

Employees who have completed at least a year of service by their child's arrival shall be entitled to the following parental leave:

Parental leave may be extended for up to another year in the event of the child's illness, serious accident or severe handicap.

In the case of adoptions, parental leave shall be as follows:

This leave shall go unpaid by the employer, though employees may still receive a range of allowances from the relevant social security body.

Other Leave

Employees may be entitled to receive a range of social security allowances during their absence for the leave listed below. More information on the specifics of each leave can be accessed through the respective links attached to each leave type.

Other unconventional leave types that may be of interest: Création ou reprise d'entreprise | Exercice d'un mandat politique local | Congé sabbatique | Congés et absence pour formation

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