Copyright 2023 – Azure Global. All Rights Reserved.
Good to know
In France, employees are granted a monthly home working allowance of EUR 100. This allowance is designed to compensate for the necessity of utilizing a portion of the employee’s residence for work-related tasks and not intruding their personal life.
Currency
Euro (EUR)
Capital
Paris
Employee Costs
16.10%
Local Language
French
Employer Taxes
45%
Public Holidays
13 Days
Payroll Frequency
Monthly
Tax Year
1st Jan – 31st Dec
Are you ready to hire in France?
In France, most individuals are proficient in both French and English (or other pertinent languages). This proficiency is vital for ensuring effective communication with local customers, partners, and authorities.
Additionally, the country boasts a workforce that are both diverse and highly skilled. Opting to hire locally provides an opportunity to access this talent pool, potentially uncovering individuals with distinctive abilities and backgrounds that can be advantageous to your business.
Want to know more?
Call us today at: +44 (0) 333 034 1068
Minimum Wage
The national minimum wage in France is an hourly rate of 11.27 EUR, which equates to a monthly rate of 1,709.03 EUR.
Working Hours
Standard Working Hours
The working week for all companies is set at 35 hours, and the working day should exceed 10 hours. The standard working week is Monday – Friday.
Overtime
Any work exceeding the standard 35 hours per week is considered overtime and must be compensated accordingly, following regulations laid out in collective agreements and contracts.
Furthermore, overtime pay rates typically calculate an additional 25.00% per hour for each of the first 8 hours of overtime and an additional 50.00% per hour for each subsequent hour beyond the initial 8 hours of overtime.
Payroll
The payroll cycle in France is generally a monthly cycle, and salaries must be paid by the last working day of each month. Additionally, 13th Salary is not mandatory, but is customary and generally paid at the end of the year at the employers discretion.
Leave
Paid time off
Once employees have completed at least 1 month of work during the reference period, they are entitled to paid leave. For each month worked thereafter, workers have the right to 2.5 working days of leave, totaling 5 weeks of paid leave for each year of work.
Sick Pay
Sick leave payments are dependent on the length of employment with the company, and the length of the period of absence.
Social Security usually covers up to 50% of the employee’s daily earnings, capped at €48.69 per day. However, this is from from the 4th day of illness onwards. Additional compensation from the employer is common and is detailed within the collective/company agreements.
Maternity Leave
Employees are entitled to a minimum of 16 weeks of fully compensated maternity leave. Throughout this period, employees receive payments from the social security system.
Paternity Leave
Fathers are entitled to 100% paid paternity leave for 28 days after the birth of a child.
Termination
Termination of Employment
Termination of employment can occur by mutual consent or dismissals due to economic factors, such as structural, or technological shifts within the company. Alternatively, employees might choose to resign by providing written notice in accordance with the stipulated notice period outlined in the employment contract. In urgent cases, employees could face immediate dismissal, particularly in instances of severe misconduct or theft.
Severance pay in France depends on several factors, including the terms in the employment contract/collective bargaining agreement, the position/role of the employee, the reason for termination, and the goodwill between the company and the employee, all of which can affect the amount due substantially.
Notice Period
The notice periods are dependent on the employees length of service. In the initial 6 months of service, the notice period aligns with the terms specified in the relevant collective agreement or employment contract. For employees leaving after completing 6 months up to two years of service, one month’s notice is required. This extends to 2 months after 2 years of service with an employer.
Probation Period
The probation period’s maximum duration varies depending on the type of contract (fixed term or indefinite term) and the professional category of the team member. During the probation period, the employment contract may be freely terminated by the employee or by the employer. This is without the need to state reasons, and without compensation (unless otherwise provided for in the agreement).
Visa
Visa rules in France vary depending on the purpose of the visit and the nationality of the traveler. Generally, travelers from countries within the European Union (EU) or the Schengen Area do not require visas for short stays. However, for visitors from other countries, a Schengen visa is typically required for short visits (up to 90 days) for purposes such as tourism, business, or family visits.
For longer stays or other purposes like work or study, specific visas and residence permits are necessary. The application process involves providing documentation, proof of financial means, and travel insurance.
VAT
The standard rate of VAT in France is 20.00%.
