Hiring Employees in France
Payroll Services France
Transform your business by choosing Outsourced Payroll in France through PeoplePay Global, for assured reliability and accuracy in your management of employee salaries, tax withholdings and social security contributions.
Our expert knowledge will ensure that timely processing and precise reporting are produced aligned with the French Payroll Legislation, including URSSAF (Social Security) and Income Tax Requirements.
Outsource your French Payroll today and reduce your administrative workloads, and allow your business to focus on company growth with ease.
French Payroll Services
Streamline your business by choosing Outsourced Payroll in France through PeoplePay Global for a reliable and fully compliant management of your employees’ salaries.
With in-depth knowledge of the French Payroll Legislation, our experts can guarantee timely and accurate payments every payroll cycle, including URSSAF (Social Security Contributions), Income Tax Withholdings and Income Tax Requirements. We handle every step of the payroll process with care, from statutory deductions, bonuses and overtime, and filing and reporting to French Authorities with precision.
By outsourcing your Payroll in France, you can be assured of reducing administrative burdens and minimising costly errors, whilst staying fully compliant with frequently changing labour and tax regulation laws. Whether you are a start-up company or a multinational organisation, our team will tailor our payroll solutions to your individual business needs, ensuring trust and transparency throughout.
With strict data protection measures in place, you can gain the peace of mind that your payroll management will be improved in efficiency and accuracy, allowing you and your employees to focus on company growth and long-term success.
In France, pay and taxation are structured through a combination of minimum wages, progressive income tax, and mandatory social contributions.
France has a national minimum wage called Salaire Minimum Interprofessionnel de Croissance (SMIC). As of 2026, the gross minimum wage is €12.01 per hour. The legal full-time hours are 35 per week, with a maximum weekly hourly allowance of 48. Overtime may start after 35 hours and is typically +25% for the first 8 hours and +50% for any additional hours.
French salaries are usually paid gross, with the net salary deposited into your bank account. There are specific deductions, however, including social security contributions (typically 20%-23%), employer contributions (typically an additional 40%-45%), and income tax, which is deducted via PAYE.
France has a progressive tax system, meaning income up to €11,172 is tax-free. The rest are taxed as follows:
- 11% on income up to €18,507
- 30% on income up to €27,086
- 41% on income up to €78,570
- 45% on income above €78,571
In addition, French employees must also contribute to health insurance, unemployment insurance, old-age pensions and family benefits.
In France, pension contributions are mandatory social security contributions paid to fund the public retirement system. Both the employee and the employer must pay into the system.
The majority of France’s pension system is pay-as-you-go (PAYG), with contributions from current workers funding pensions for retirees. Contributions are split between basic pensions and complementary pension schemes for private-sector employees.
This typically looks as follows:
- Basic social security pensions:
- 6.9% from the employee
- 8.55% from the employer
- Complementary pension:
- 7-8% from the employee
- 12-13% from the employer
- Self-employed:
- 28-30%, equalling portions from both.
The employee’s contribution is deducted from their gross salary, and the employer’s contribution is paid on top of it.
Contributions are deducted monthly, and the amount that you will receive depends on the number of years you have contributed, the average salary and the accrued points in the complementary pension scheme.
The local retirement age in France is 62, with a full pension typically requiring 43-44 years of contributions. Any additional pension points from complementary schemes will be converted into retirement income.
In France, working hours are regulated by the French Labour Code (Code Du Travail) and collective agreements.
The standard working hours are typically 35 hours per week for full-time employees, with 7-8 hours per day. Overtime is provided for any hours above 35 per week.
Overtime is paid at a higher rate: +25% for the first 8 hours and +50% for any hours beyond that.
Part-time employees will work fewer than 35 hours per week and are entitled to pro rata holiday and benefits.
In France, statutory leave and time off are strictly regulated by the French Labour Code (Code du travail), and most employees enjoy generous entitlements compared with those in many other countries.
Employees are typically entitled to 5 weeks of paid annual leave. This is calculated based on days worked (typically 2.5 days earned per month). Any unused annual leave will often be carried over or paid out at the end of employment.
For any public holidays that fall on a regular workday, employees will receive a paid day off.
Employees are entitled to sick leave if it is certified by a doctor. The employer will pay them for the first 3 days of leave, after which Social Security (CPAM) will reimburse a portion of their salary for any days beyond that. This will typically be around 50-70%.
For maternity leave, employees are entitled to 16 weeks of standard paid leave, typically 6 weeks before birth and 10 weeks after. For paternity leave, employees are entitled to 28 days and are paid via social security. Parental leave is available after either maternity or paternity leave, and can be up to 3 years per child. This is typically unpaid, but allowances may be available.
For any sick or family leave, employees are entitled to paid leave for events such as the death of a close relative, marriage, or civil union.
In France, termination of employment is strictly regulated by the French Labour Code (Code du travail). Employees have strong legal protections that employers must comply with. For example:
For any termination for cause, where the employee is dismissed for misconduct or serious misconduct, they will receive reduced notice; for gross misconduct, they will be dismissed immediately without notice or severance.
Employees are generally entitled to notice based on seniority and any collective agreements:
- 1 month for less than 6 months of service
- 1-2 months for 6 months to 2 years of service
- 2-3 months for 2+ years of service
Employees terminated without serious misconduct are usually entitled to severance:
- A minimum of ¼ month’s salary per year of service for the first 10 years
- ⅓ month’s salary per year of service beyond 10 years
Under French law, a formal procedure is required for any termination. For example:
- The employer must send a letter specifying the reason for termination and inviting the employee to a meeting period, during which they may bring a representative.
- The employer will then explain their reason for termination, and the notice will be executed. This notice can either be worked or paid out in lieu.
If you’re searching for help with employee management, our payroll solutions cover everything from global payroll services to global HR and consulting services.
