Guide to Hiring in France

Overview

France is the third-largest economy in Europe, and the seventh largest in the world in terms of GDP. It is an advanced and industrialised country and is home to a sophisticated financial market. This, coupled with France’s highly educated workforce, makes it an attractive place for business growth. 

Several industries contribute to the French economy, namely energy, transport, manufacturing, technology, tourism, and agriculture. 

Successfully expanding your business to France requires a deep understanding of the country’s laws and regulations, many of which are complex and bureaucratic. This guide provides all the information you need to successfully build a workforce in France.

Payroll and taxes

France's tax system includes four categories:

• Corporate tax
• Personal income tax
• Social levies 
• Payroll taxes

An employee is considered a resident in France if:

• Their home or main place of abode is in France
• They conduct a salaried or non-salaried professional activity in France (unless they can prove that it is a secondary activity), or
• They have the centre of their economic interest in France.

Regardless of their nationality, employees who fit any of the above criteria are taxable on their worldwide income.

Employer contributions

The standard corporate income tax (CIT) rate in France is 25% in 2026. A reduced 15% CIT rate is available to certain small and medium-sized enterprises (SMEs) with annual turnover not exceeding €10 million, provided other eligibility conditions are met. This reduced rate applies to the first €42,500 of taxable profits; profits above this threshold are taxed at 25%.

In addition, some companies are subject to a 3.3% social contribution on corporate income tax (contribution sociale sur l'IS). This contribution is calculated on the amount of CIT due after a €763,000 annual allowance and generally applies only to companies with annual revenue exceeding €7.63 million.

French employers contribute to social insurance from withholdings on employee income, in addition to their own social insurance payments. These contributions fund social programs such as:

• Pensions and supplementary pension plans
• Family allowances
• Health insurance
• Work accident insurance
• The National Housing Assistance Fund
• Unemployment insurance

Employers are required to remit payroll taxes on wages if they are not subject to VAT, or are subject to VAT on less than 90% of total sales. Rates range from 4.25% to 13.6%, depending on the employee's annual remuneration. Employers will not need to pay if the tax owed is less than €1,200 per year.

In most industries, eligible employers will need to pay apprenticeship tax, which is 0.68% of the total taxable wages and benefits. This is used to fund apprentice training.

Employee contributions

Employee income tax rates in France are adjusted according to income and family size. 

Standard income tax rate brackets are as follows:

• Up to €11,600: 0%
• €11,601 -€29,579: 11%
• €29,580 -€84,577: 30%
• €84,578 – €181,917: 41%
• More than €181,917: 45%

There is an additional surcharge of 3% to 4% on higher incomes.

Employees in France can choose a neutral rate instead, based on their monthly income. If the neutral rate is lower than the standard, the employee will need to pay the difference. If the rate is higher, they will receive a refund.

In France, taxable income includes wages, salaries and gross proceeds, such as benefits in kind. As an employer, you will need to deduct income tax from your employees’ wages and send it directly to the Directorate General of Public Finance.

Working hours

French working hours are typically 8am to 4pm or 9am to 5pm, with one hour allocated for a lunch break. However, this varies depending on the business and collective agreement.

The weekly working hours are 35 (based on seven working hours per day, five days a week). Any hours worked beyond this quota must receive overtime payment.

Minimum wage

The minimum salary in France currently stands at €12,31 per hour, amounting to €1,867.02 per month based on a 35-hour working week. Overtime is paid at a premium, with a 25% increase for the first eight overtime hours and a 50% increase for any additional hours worked.

Employee benefits

Mandatory benefits

Mandatory employee benefits in France include:

• Pension
• Solidarity allowance for the elderly 
• Spouse’s pension 
• Workers’ compensation 
• Death grant

Old age pension

The legal retirement age in France is being progressively increased from 62 to 64, with the retirement age rising by three months for each affected birth cohort.The age of automatic entitlement to a full pension is 67. The qualifying period for a full pension depends on the employee’s date of birth (month and year).

You can credit coverage for periods that your employee received an unemployment benefit or disability pension (provided that the assessed degree of disability is higher than 66%).

Solidarity allowance

The solidarity allowance for the elderly is a social benefit available to eligible low-income retirees aged 65 or older, as well as certain individuals who have reached the legal retirement age and are recognised as unable to work.

Spouse’s pension

Mandatory benefits in France include pensions for widow(er)s aged 55 or older or who are disabled. Unmarried surviving partners or partners who had a civil partnership do not qualify.

If the widow(er) is aged 55 or older and has raised three or more children, they are eligible for a child’s supplement.

Death grant

This grant is provided if the deceased was employed or received an unemployment benefit, sickness benefit or disability pension at the time of death.

Supplementary benefits

Bonuses

Bonuses may be offered as a benefit, but they are not mandatory. If provided, they must be included in collective agreements or the employment contract (for example, as year-end premiums).

Employers can also pay performance bonuses, the extent and conditions of which should be set out in the employment contract, under “bonus plans”.

Medical insurance

Medical insurance is a competitive employee benefit in France. All employees qualify for medical care benefits through the National Inter-Professional Agreement, which offers a minimum care basket.

However, companies can choose to provide greater coverage as part of their benefits package.

Additional perks

Optional benefits vary depending on the company. However, when considering supplementary benefits for your employees, think about what would be most helpful to their needs and how you can help them create the best possible sense of work-life balance.

Doing so will result in a more productive and engaged workforce, thus having a positive impact on your bottom line.

Additional benefits could include:

• Flexible and remote working options 
• Transportation allowance 
• Profit sharing 
• Additional holiday allowance 
• Fitness schemes (such as gym memberships or cycle to work incentives)

Types of leave available

Annual leave

Full-time employees in France are entitled to two-and-a-half days of holiday for every month they work. This equates to five full weeks of annual leave per year, as Saturdays are classed as working days).

Annual leave is generally accrued between June 1 and May 31, although some employers may use a different reference period through a collective agreement. Employees accrue leave from the start of employment and may be able to take accrued leave before the end of the accrual period, depending on company policy and applicable agreements. However, you can be flexible on this as an employer when negotiating the contract.

The holidays in France are traditionally taken in July and August, the main holiday period. During these months, some organisations choose to shut down entirely.

According to French employment law, there are some limitations on how leave can be taken:

• Employees cannot take leave for more than 24 working days at a time
• The employee must take at least 12 working days of annual leave at one time 
• Vacations lasting more than 12 working days can be split up by the employer, in agreement with the employee
• The fifth week of leave must be taken separately from the main holiday period 

Employees can also receive some extra time off if a portion of the main holiday has been taken outside of the period of May 1st to October 31st. This should be one extra day if the portion lasts three to five days, or two extra days if the portion lasts for six or more days.

Some organisations manage the 35-hour working week by introducing longer vacations. The company decides when this leave is to be taken, but it is typically in August or the last week of December. Otherwise, this leave is applied when the workload in the company is low due to seasonal fluctuations.

It is also possible for companies to provide additional annual leave depending on how many years an employee has worked for the organisation. 

Public holidays

France observes the following public holidays:

• New Year’s Day
• Easter Monday
• Labour Day
• WW2 Victory Day 
• Ascension Day 
• Whit Monday
• Bastille Day
• Assumption of Mary
• All Saints Day
• Armistice Day
• Christmas Day 

Sick leave

Employees can claim sickness benefits from France’s social security system from the fourth day of absence, following a three-day waiting period. Depending on the applicable collective bargaining agreement or company policy, employers may also provide additional compensation during sick leave.

Employees must obtain a medical certificate from their doctor and submit it to the relevant social security body within 48 hours of the start of the absence.

France's social security system provides financial support to employees who are unable to work due to a serious or prolonged illness. To be eligible for sick leave of up to six months, the employee must:

• Have worked for at least 150 hours in the last 90 days (or three calendar months) prior to taking ill
• Have paid social security contributions based on gross earnings equivalent to 1,015 times the minimum hourly wage (SMIC) during the previous six months

For sick leave lasting longer than six months, employees must:

• Have been registered with the French social security system for at least 12 months before the start of the sick leave, and have worked at least 600 hours during the previous 12 calendar months (or 365 days preceding the stop)
• Have paid social security contributions based on earnings equivalent to at least 2,030 times the hourly minimum wage (SMIC) during that period

The amount of sickness benefit paid by the social security system is generally calculated based on the employee’s previous earnings and is subject to statutory limits. Additional employer-paid compensation may apply depending on the employee’s length of service and the terms of any applicable collective agreement.

Maternity and paternity leave

Maternity leave

Employees are entitled to a minimum of 16 weeks of paid maternity leave. Up to six weeks of this allowance can be taken as prenatal leave. Employees are entitled to shorten their maternity leave, but it is compulsory to take eight weeks minimum.

Prenatal leave is automatically extended if the birth date takes place after the estimated due date. However, postnatal entitlement does not change in this instance.

During maternity leave, the social security office pays a portion of an employee's salary. However, many collective agreements guarantee full salary payment. The employer needs to provide an annual salary certificate to the social security agency to allow the employee to receive social security benefits.

Employees can request for extended maternity leave if they have three or more children. After the third child, they are eligible for eight weeks of maternity leave before the date of birth and 18 weeks after.

Paternity leave

New fathers in France are entitled to 25 calendar days of paternity leave and childcare leave (increasing to 32 days for multiple births). In addition, employees also have three working days of employer-paid birth leave.

The leave must be taken within six months of the birth, and seven days are mandatory, comprising the three-day birth leave and four days of paternity leave taken immediately after the birth.

Employees must inform employers at least one month in advance, and employers may need to provide a salary certificate to the social security authorities to enable the employee to claim benefits.

Types of employment contracts

In France, employment contracts are based on the nature of work required by the employer. There are four common types of employment agreements that include:

• Contrat à Durée Indéterminée (CDI)
  These are permanent contracts with no end date and is subject to mandated labour laws and collective bargaining agreements (CBA) where applicable.
  
  
• Contrat à Durée Déterminée (CDD)
  Fixed term contracts with a pre-determined end date for when a task is completed by the employee.
  
  
• Apprenticeship
  These types of contracts are put in place when the objective is for the employee to obtain a professional certificate. It must be in written form with terms stipulating the training and employment activity.
  
  
• Single integration contracts
  An employment contract for when an employer will receive financial aid while facilitating the employment of an employee who is facing difficulty in securing a job. This contract can be for temporary or permanent period of employment and requires a minimum of 20 hours of work per week.  

Attracting talent

When it comes to recruiting employees in France, employers can advertise vacancies through France Travail, the national public employment service, but are free to use other recruitment channels.

However, most recruiting in France is done on a word-of-mouth basis, so it’s essential to consider local networking if you are looking to expand your business in the region.

Regardless of your recruitment methods, you need to ensure that you're offering appeals to the right workforce amidst an increasingly competitive job market. Consider the following when attracting top talent in France:

Training and development

Employers in France must cover the cost of employee vocational training. This means that all French employees are entitled to training, and qualifying employees are able to take leave to pursue training that will help them improve their qualifications or even change their careers.

Qualifying employees can attend a career development interview every two years with their employer. This approach to progression is an excellent opportunity for organisations to provide designated training programs designed to improve staff skills and boost their career prospects.

This will help businesses to retain and attract goal-oriented employees.

Employee wellbeing

As a result of the COVID-19 pandemic, attitudes towards work have changed significantly around the world. French employees now expect more from their employers, and those organisations that listen to their staff’s needs are more likely to attract and retain satisfied, committed workers.

Businesses should review the ways in which they help employees achieve a strong work-life balance. This could include introducing flexible working hours, offering access to mental health support networks and creating a safe space for workers to express any concerns or suggestions they have for improvement within the business.

Termination of employment

France has strict regulations for the termination of an employment contract, so it is advisable to seek legal advice to make sure your organisation follows the legal guidelines and that you are fully aware of what the termination process involves.

An employment contract can be terminated without restrictions during the probationary period unless there is a collective bargaining agreement, or the employment contract states otherwise.

If an employee has passed their probationary period, set notice periods should be adhered to, in line with the collective bargaining agreement or contract of employment.

Termination at the employee’s request

If an employee wishes to terminate their employment relationship during the trial period, they must inform the employer via registered mail or letter, delivered by hand. The employer should then add the date they received the letter and sign it. The employee must provide a prior notice period, which will depend on how long the company has employed them.

Employees who want to leave the company after their probationary period is over must send their resignation letter by registered post or hand deliver it. They must also respect the notice period that is listed in the collective agreement. This type of registration doesn’t provide rights to unemployment insurance.

Termination at the employer’s request

If an employer wishes to terminate an employee’s contract during their trial period, they must let the employee know via hand-delivered letter of dismissal or registered mail. The employee must add the date of receipt to this, along with their signature. The employer must comply with the applicable notice requirements during the probationary period, which vary depending on the employee's length of service.

Once an employee has successfully completed their probationary period, a dismissal must be based on a real and serious cause (cause réelle et sérieuse). In France, dismissals generally fall into two categories:

• Dismissal for personal reasons – relating to the employee, such as professional inadequacy, failure to perform duties, misconduct, or a breach of company rules.

• Dismissal for economic reasons – resulting from business-related circumstances such as economic difficulties, organisational changes, or the cessation of business activity.

Unless the dismissal is for serious or gross misconduct, the employee will generally be required to serve a notice period in accordance with the law, their employment contract, or the applicable collective bargaining agreement.

Employers can exempt employees from giving prior notice, but they must remunerate them unless serious misconduct or gross negligence has occurred. In this case, the employment will end as soon as the notice of dismissal has been given.

Redundancy

Redundancy on economic grounds is reserved only for employers who are experiencing economic difficulties that do not enable them to continue employing staff.

In this instance, employers need to propose a professional security contract (CSP). In some cases, they will also have to propose a reclassification for their employees ahead of the procedure.

Following up after a contract termination

Once the contract has been terminated, the employer will need to submit the employee’s final payslip, along with a work certificate that details the dates of employment, position and classification in balance, and a receipt for the balance of all accounts of amounts paid on the last payslip to the France Travail. This enables the employee to receive unemployment insurance.

In the event of a contractual termination or ground for dismissal, the employer needs to propose the portability of the pension and mutual insurance benefits. This requires completing a form to be sent to the insurer.

Probationary period

Probation periods are not mandatory in French employment contracts, but they typically last between two to four months.

Notice period

Notice periods in France vary depending on the type of termination and the applicable collective bargaining agreement. For dismissals, the statutory minimum notice period is generally one month for employees with between six months and two years of service and two months for employees with at least two years of service.

For resignations, notice periods are typically determined by the employment contract, collective bargaining agreement, or established practice.

Employees who have been employed for more than two years usually must provide two months' notice, and those in executive positions may need to provide a three-month notice.

Total taxable income is divided into the number of shares (‘parts') that reflects the taxpayer's marital status and the number of dependents.

Severance pay

Employers are generally required to provide statutory severance pay to employees who meet the eligibility requirements, except in cases of serious misconduct or gross misconduct.

Are background checks compulsory?

Background checks are limited to strictly necessary verifications of an employee’s references, qualifications, and experiences. Criminal background checks are only carried out in professions that require security responsibilities or involve working with children or sensitive materials and information.

What are my options for hiring?

Airswift offers a range of employment solutions for businesses looking to hire in France. These services make it easy for you to hire employees efficiently and within full compliance with French labor laws.

Our expertise and knowledge allow us to minimise risk while taking on the administrative responsibilities of hiring and onboarding candidates, allowing you to focus on growing your business.

Talent acquisition

Working with an in-country talent acquisition specialist helps you to source high-quality candidates in a competitive landscape.

Our contract hire services can help you fill temporary roles and provide your business with the agility to respond to shifts in needs and market demand.

For long-term hiring needs, Airswift’s professional search can help you discover talented candidates for permanent roles within your business.

Employer of record

For businesses that want to hire remote employees without setting up a physical entity, partnering with an Employer of Record in France simplifies the process of hiring with minimal compromise on time and expense.

An experienced Employer of Record lets you bypass the complications of physical entity setup and focus on growing your business. Tasks an EOR can help you manage include overseeing locally compliant payroll and managing statutory benefits.

*Although the information provided has been produced from sources believed to be reliable, no warranty, express or implied, is made regarding the accuracy, adequacy, completeness, legality or reliability of any information. For the latest information and specific queries regarding particular cases, please contact our team.