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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

Georgia is unlike many European countries in that its minimum wage was set by presidential decree, not modern minimum-wage legislation, and it is not indexed to inflation or the cost of living. As a result, it is widely viewed as ineffective as a living-wage protection.

Private sector: GEL 20 per month (statutory minimum set in 1999; unchanged).

Public sector (executive branch): GEL 135 per month (minimum for executive-branch government employees under a later presidential order; also unchanged for many years).

Unofficial / practical minimum wage

While the legal figures above exist on paper, market wages in Georgia are far higher in practice. Employers typically set pay based on role, sector norms, and competition for talent, meaning the statutory minimum is mostly a formal legal reference rather than a realistic wage floor.

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 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.

Want to find out more?

FAQ's

How do companies run payroll in France?

Companies run payroll in France by calculating gross pay, employee deductions and employer social contributions, paying employees, and submitting the monthly Déclaration Sociale Nominative (DSN).

The DSN is central to French payroll. It sends payroll and employment information to the relevant social protection bodies and is also used to report certain employee events, such as sick leave and the end of employment. Employers also withhold income tax through prélèvement à la source (PAS), using the tax rate provided by the French tax administration.

Payroll calculations must also account for the collective agreement covering the employee. This can affect minimum salary, bonuses, overtime, allowances and other elements that appear on the payslip. Employers must provide a payslip for each pay period showing gross salary, contributions, income tax withheld and net pay.

Companies can run French payroll internally or use a payroll provider to manage these calculations and filings. Foreign employers eligible for the simplified Titre Firmes Étrangères (TFE) service may use that system instead of the ordinary DSN process.

How do you set up payroll in France?

To set up payroll in France, a company must first be registered as an employer, then complete the employee’s pre-hire declaration (DPAE) and set up the monthly DSN payroll reporting or the applicable simplified reporting procedure.

Before the first payroll, the employer also needs to identify the collective agreement (convention collective) and job classification that apply to the employee. These can affect minimum salary, bonuses, allowances and other amounts that need to be calculated through payroll.

French payroll must then account for employee and employer social contributions and prélèvement à la source (PAS), where income tax is withheld using the rate provided by the French tax administration.

A foreign company does not necessarily need to establish a French subsidiary to do this. It may be able to register as a foreign employer or use an Employer of Record that employs the worker locally and manages payroll and employment administration in France.

Do you need a legal entity to run payroll in France?

No, a foreign company can arrange payroll in France without a French legal entity. It can employ someone directly through Urssaf’s foreign employer service, or use an employer of record that employs and pays the person. Urssaf is France’s social security contributions collection body. Under the direct route, the company remains the legal employer.

A foreign company employing staff in France without a French establishment must complete the applicable registration formalities and obtain the identifiers required for French payroll and social security reporting. It may be eligible to use Urssaf’s Service Firmes Étrangères and the simplified TFE service. The company must arrange the pre-employment declaration, payslips, income tax withholding and monthly social reporting. It must also apply the relevant employment rules and keep records for each pay run. A payroll specialist can handle the processing and submissions, but outsourcing those tasks does not change who employs the worker.

With an employer of record, the provider is the legal employer and operates payroll. The client directs the person’s work. Which route fits depends on the role, who will employ the person and which employment responsibilities the company wants to manage itself.

What payroll taxes must employers pay in France?

Employers running payroll in France pay contributions for healthcare, pensions, family benefits, unemployment, workplace accidents and training. The standard employer rates include the following:

Healthcare: 13% at the standard rate, or 7% where the reduced rate applies.

Basic pension: 8.55% up to the social security earnings ceiling, plus 2.11% on all pay

Family benefits: 5.25% at the standard rate, or 3.45% where the reduced rate applies.

Unemployment insurance: 4% of covered pay up to the applicable contribution ceiling of €192,240 in 2026.

Supplementary pension: 4.72% on the first earnings band and 12.95% on the second.

Training: 0.55% of payroll for employers with fewer than 11 staff, or 1% for larger employers, subject to the rules for crossing that threshold.

Other applicable employer contributions can include the 0.30% solidarity autonomy contribution, the AGS contribution, the FNAL contribution, the apprenticeship tax and the versement mobilité, depending on the employer’s circumstances. Workplace accident insurance has no single rate. The employer’s rate depends on its activity, size and accident record. Reductions can lower contributions for eligible lower-paid employees. From 1 January 2026, employers must apply the reformed general reduction of employer social contributions (réduction générale dégressive unique), where eligible, rather than assuming that all standard contribution rates apply without adjustment. Payroll also deducts employee contributions and withholds income tax, which are separate from these employer costs.

When should companies outsource payroll in France?

Companies should outsource payroll in France when their internal team lacks the time or local knowledge to handle French calculations, monthly social declarations and employee pay queries. Outsourcing can also help when a company is adding employees, handling variable pay or coordinating payroll across several countries.

French payroll can be difficult to manage internally because calculations are affected by more than salary and statutory deductions. The employee’s collective agreement and job classification can influence minimum pay, bonuses, overtime, allowances and other payroll items.

Outsourcing can also reduce the burden of managing France’s monthly DSN reporting, social contributions and prélèvement à la source (PAS) income tax withholding. It can be particularly useful for foreign companies with a small French payroll that do not have an in-house team familiar with these requirements. For companies operating in several countries, outsourcing can also reduce the need to manage a separate payroll process and provider in every market.

How much does payroll administration cost in France?

Administering payroll in France through an external provider may cost approximately USD 20–55 per employee per month as an indicative commercial estimate. This range is not a statutory tariff or a verified market-wide average and should be confirmed against current provider quotations. . The fee depends on headcount, service scope and the complexity of each pay run. Basic processing sits near the lower end, benefits administration and employee support cost more.

Providers may charge per employee or set a monthly minimum. Setup and corrections can cost extra. France’s collective agreements can set sector minimum pay, bonuses and benefits. A provider must apply those terms to payroll, so handling several agreements or frequent pay changes can raise the fee.

A quote should say whether it includes payslips and the monthly social declaration (DSN), which reports wages and contributions to French social security bodies. Employers also need to check whether off cycle runs and employee questions are covered. The provider’s fee is separate from wages, employer social contributions and benefits.

What employee benefits must employers provide in France?

Mandatory employee benefits in France include group health insurance, supplementary pension contributions, paid annual leave and reimbursement of eligible public transport passes. Employers pay at least 50% of the group health premium and 50% of an eligible transport subscription. Employees receive five weeks of paid annual leave. The statutory annual leave entitlement is generally 2.5 working days per month worked, equivalent to 30 working days or five weeks per year.

Other protections include sick pay and maternity, paternity and adoption leave, subject to eligibility rules. Employers must also arrange death or disability cover where required, including death cover for eligible managers. Profit-sharing becomes mandatory once a company has met the 50-employee threshold for five consecutive years.

The applicable collective agreement may add stronger insurance cover, extra paid leave or other benefits. Employers need to check which agreement covers each role and pay the correct share. Meal vouchers and other perks are generally optional unless an agreement or company policy requires them.

What is the minimum wage in France?

The minimum wage in France, called the Smic, is 12.31 EUR gross per hour as of October 2026. That is 1,867.02 EUR gross per month for a standard 35-hour week. These are national mainland rates for an adult employee. Different rules can apply to some younger workers, apprentices and employees in Mayotte. These amounts have applied since 1 June 2026. In Mayotte, the corresponding minimum is €9.56 gross per hour or €1,449.93 gross per month.

The applicable collective agreement may set a higher minimum for the role or job grade. Where its minimum exceeds the Smic, the employer pays the higher amount. Paying above the statutory floor does not necessarily mean the proposed salary meets the collective agreement’s pay scale.

The Smic can change, including during a year if the legal inflation threshold is reached. Employers should check the current rate when setting a salary and whenever payroll rates are updated. Part-time employees must receive at least the applicable hourly minimum, even though their monthly pay reflects shorter hours.

What are the salary expectations in France?

Professional salaries in France may fall within indicative ranges such as €35,000–€50,000 gross per year for junior to mid-level roles, €50,000–€80,000 for experienced specialists and managers, and €80,000+ for senior and leadership positions. Salaries can be higher in Paris and for roles requiring scarce technical or specialist skills.

Candidates usually discuss salary as gross annual pay, but the overall package can include a performance bonus, 13th-month payment, profit-sharing or employee savings schemes, depending on the employer and sector.

Common benefits include supplementary health insurance (mutuelle), meal vouchers (titres-restaurant), employer support for public transport and additional leave or benefits provided through the applicable collective agreement. Some employers also offer remote-working allowances and supplementary retirement or insurance benefits.

Employers should also check the minimum salary under the applicable collective agreement, as this may be higher than France’s statutory minimum wage.

What payroll services does CXC provide for businesses in France?

CXC provides managed payroll in France as part of its global payroll service, helping businesses pay employees and workers locally while managing payroll across 100+ countries.

For businesses operating across several markets, CXC can bring payroll payments into a more consistent global process. Workers can be paid in local currency, while businesses can consolidate payments into a single invoice in their preferred currency. CXC can also support different payment cycles, including weekly, fortnightly and monthly payroll.

Our payroll specialists provide local support when there are questions or discrepancies, rather than leaving HR and finance teams to resolve French payroll issues themselves. Online timesheet submission and approval can also be used for hourly, daily and monthly paid workers. This can be particularly useful for businesses managing teams across France and other countries that want fewer payroll providers and less administration across markets.

Speak to our team to learn more about paying workers in France and across 100+ countries with CXC.

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