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Minimum wage in France
Payroll in France
Social security in France
Other employee benefits in France
Compliant, seamless payroll and benefits in France and beyond
Payroll and benefits in France
Every country in the world has its own unique requirements for running payroll and providing benefits to employees. These include rules and regulations that employers must abide by, as well as norms and customs that shape employees’ expectations of work.
Before running payroll in France, it’s important for employers to understand exactly what that process should look like, both to ensure compliance and to meet their employees’ expectations. Employers also need to understand the various benefits that employees are entitled to, either through the social security system or directly from their employers.
In this section, we’ll discuss these mandatory benefits, plus the additional perks employers can choose to provide to their teams. We’ll also talk about the specifics of the payroll process and share what employers need to know about the minimum wage in France. Read on for everything you need to know about payroll in France.
Minimum wage in France
The minimum wage in France is known as the salaire minimum interprofessionnel de croissance (SMIC). It was first created in 1950. Since the 1980s, it’s been indexed to inflation, which means that it gives employees the same purchasing power from one year to the next.
The minimum wage in France applies to all workers aged 18 and over, as well as younger employees who have been employed by the same employer for six months or more.
Minimum wage in France in 2025
The minimum wage in France is revalued on 1 January each year based on the rate of inflation. As of 1 January 2025, the gross minimum wage is EUR 11.88 per hour. This represents a slight increase on last year’s minimum wage.
Minimum wage in France for a full-time worker
The minimum wage in France is expressed as an hourly rate. For an employee working full-time (35 hours per week), this amounts to:
- EUR 415.80 per week.
- EUR 1,801.80 per month.
- EUR 21,621.60 per year.
What counts towards minimum wage in France?
In France, minimum wage calculations can include basic salary, benefits in kind and productivity bonuses. However, other factors, such as reimbursement of expenses, overtime, and other bonuses cannot be counted.
Other minimum wages in France
Here are some other minimum wages that apply to certain workers in France, which employers should be aware of:
- Employees aged 16 and younger: EUR 9.50 per hour or EUR 1,441.44 per month.
- Employees agreed 17–18: EUR 10.69 per hour or EUR 1,621.62 per month.
- Employees in Mayotte: EUR 8.98 per hour or EUR 1,361.97 per month.
Minimum wage for apprentices in France
Here are the minimum wages for apprentices in France, which are based on the standard minimum wage:
- First year: 27% of the SMIC (EUR 486.49 per month in 2025).
- Second year: 39% of the SMIC (EUR 702.70 per month in 2025).
- Third year: 55% of the SMIC (EUR 990.99 per month in 2025).
Minimum wage in France after tax
The SMIC is the amount employees in France are paid before taxes, social security contributions and other deductions are made. After these deductions, the minimum wage amounts to EUR 9.40 per hour or EUR 1,426.30 per month.
Payroll in France
Each country has its own unique rules, requirements, and customs when it comes to payroll, which employers need to know about to ensure compliance and meet the expectations of their employees. In France, the payroll cycle is monthly, with employees typically receiving their pay by the last day of the month. The tax year is the same as the calendar year and the currency is the euro (EUR).
Employer and employee payroll contributions in France
France has a robust social security system that covers things like healthcare, maternity leave, disability, family allowances, housing benefits and occupational accidents. This system is paid for through payroll contributions from both employers and employees. Withholding social security contributions and remitting them to the relevant authorities is an important part of running payroll in France.
Employers’ contributions break down as follows:
- Health, maternity, invalidity, and death insurance: 13% or 7%.
- Autonomy Solidarity Contribution (CSA): 0.3%.
- Old age insurance: 8.55%.
- Family allowances: 3.45% or 5.25%.
- Social dialogue contribution: 0.016%.
- Unemployment insurance: 4.05%.
- Wage Guarantee Insurance (GSA): 0.25% or 0.03%.
- National housing fund (Fnal): 0.05% or 0.1%.
- Contribution to professional training fund: 0.55% or 1%.
- Apprenticeship tax: 0.59%.
Here are the contributions paid by employees:
- Old age insurance: 6.9%.
- Taxable general contribution: 2.4%.
- Non-taxable general contribution: 6.8%.
- Social security debt reimbursement: 0.5%.
Employee income taxes in France
In France, employers must also withhold income tax from their employees’ wages and remit them to the tax authorities. Income tax is paid on a progressive scale based on household income (and not individual income). Here are the tax bands for 2025:
- Up to EUR 11,509: 0%.
- Between EUR 11,510 and EUR 29,344: 11%.
- Between EUR 29,345 and EUR 83,905: 11%.
- Between EUR 83,906 and EUR 180,471: 41%.
- Over EUR 180,471: 45%.
13th salary in France
While the 13th salary is not a mandatory part of payroll in France, it is customary. It’s usually paid at the end of the year. In some industries, it’s required based on the relevant collective bargaining agreement. Depending on the agreement that applies, employers can sometimes spread out the payment and pay it in 12 instalments alongside their employees’ normal monthly wages.
Social security in France
Social security in France pays for a large number of employee benefits that would otherwise be provided directly by the employer. These are funded through payroll contributions from employers and employees.
There are also certain benefits that employers are required to provide directly to their employees. Below, we’ll list some of the most important mandatory benefits in France, whether provided through social security or by directly by employers.
Health insurance in France
French residents benefit from universal healthcare, paid for through the social security system. This system typically refunds patients 70% of healthcare costs. Employers must also provide their employees with private health insurance called a mutuelle. This covers the portion of healthcare costs that is not covered by social security in France.
Old-age pensions in France
Both employees and employers contribute to the state pension, which gives employees an income when they retire. The amount retirees can access depends on the number of quarters they worked during their working life.
In addition to the basic pension funded through social security in France, employers must provide a complementary pension called Agirc-Arrco. Contribution rates are proportional to the employee’s salary.
Unemployment benefits in France
Employees in France can claim unemployment benefits if they have been paying into the social security system for at least 122 days in the last 28 months. They must also have resigned from their role for valid reasons, had their contract terminated, or ended it by mutual agreement with their employer. The benefit employees receive is based on their income prior to losing their job.
Workers compensation in France
Employers in France are required to make contributions into a workers’ compensation fund based on the level of risk in the workplace. Employees can then receive payouts for work-related injuries. Employer contributions increase as they report more work-related injuries.
Death insurance in France
Death insurance is a type of insurance that pays out to an employee’s family members in the event of their death. It’s paid for through employer contributions to social security in France.
Life and disability insurance
Prevoyance is a type of insurance that includes life insurance and both long- and short-term disability benefits. It’s paid for in full by the employer. Employees can claim prevoyance if they lose at least 66.7% of their earning capacity due to disability before reaching retirement age.
Leave in France
Employees in France are entitled to various types of paid and unpaid leave, including annual leave, sick leave, maternity leave, and paternity leave. Some of these are paid directly by the employer, while others are funded through social security. For example, sick leave in France is not paid by the employer, but employees can access a benefit amounting to 50% of their normal earnings through social security.
Transportation allowance in France
French employers must cover 50% of their employees’ public transportation expenses to help them with the cost of commuting to work. Some employers choose to cover more than the required 50% in order to improve their offering to employees.
Profit-sharing in France
In some industries, collective bargaining agreements require employers to implement a profit-sharing plan when they employ more than 50 people.
Other employee benefits in France
Here are some other employee benefits in France that employers can choose to provide for their employees. While not mandatory, providing additional benefits can help businesses to attract and retain top talent.
Meal vouchers in France
Many French companies offer meal vouchers known as tickets restaurants. These are funded partially by the employee and partially by the employer. The employer-funded part is capped at 60% and is exempt from social security contributions up to EUR 6.50 per voucher.
Supplemental parental leave in France
Employers in France can choose to offer their teams maternity, paternity, or parental leave beyond what’s required by French labour law. This can be a valuable employee benefit for employees wanting to start families.
13th-month pay in France
The 13th salary is not mandatory in France unless stipulated by a collective bargaining agreement. However, employers can choose to provide it as an additional benefit.
Flexible work hours in France
Giving employees the ability to set their own working hours can be a valuable benefit that helps them to improve their work-life balance.
Health and wellbeing benefits in France
Health and wellbeing benefits such as gym memberships, employee assistance programs, or fitness classes are becoming more popular employee benefits in France.
Work equipment in France
One common fringe benefit in France is providing employees with equipment for work. Beyond basic items like laptops, this might include things like standing desks or ergonomic chairs to make remote work more comfortable.
Compliant, seamless payroll and benefits in France and beyond
Getting payroll and benefits right is not just a legal issue. Every country also has its own customs, norms and expectations about employee compensation. And if your operations aren’t in line with your workers’ expectations, they may not stick around for long.
Thankfully, we know what we’re doing. When you work with CXC to engage workers in France, we’ll handle everything from tax withholding to employee bonuses on your behalf.
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