Employers in France are required to pay social security contributions (cotisations sociales) covering health, family, unemployment (Pôle Emploi), work accident, and pension (retraite) insurance, which typically range from 25% to 42% of gross salary depending on the employee’s status. Statutory benefits also include a minimum of 25 paid vacation days per year, paid public holidays, and mandatory health insurance (mutuelle d’entreprise). Additionally, employers must contribute to complementary retirement schemes (AGIRC-ARRCO) and disability/death insurance.

Payroll taxes in France are comprised of employer and employee social security contributions, with employers typically paying between 40% and 45% of gross salary, and employees contributing around 20-23%. Both sets of contributions are withheld and declared monthly via the DSN (Déclaration Sociale Nominative) to URSSAF and other collecting agencies. Employers are also responsible for withholding income tax at source (prélèvement à la source) from employees’ salaries.

Beyond direct salary and statutory contributions, employers should budget for costs such as the 13th month bonus (prime de treizième mois, often included in certain sectors), statutory severance pay (indemnité de licenciement), mandatory medical checkups, and administrative fees for payroll processing. Onboarding, training, and compliance with collective agreements (conventions collectives) can further increase total employment costs. Relocation allowances and outplacement services may also be customary for certain roles.

French law mandates a national minimum wage (SMIC), which in 2024 is €1,766.92 gross per month for a full-time worker, and strict limitations on working hours (35 hours/week standard, with overtime regulated). Termination requires formal procedures, including notice periods and, in most cases, payment of statutory severance and unused leave; collective bargaining agreements may impose additional costs. Fixed-term contracts (CDD) generally require an end-of-contract indemnity (prime de précarité) of 10% of total gross pay.

The most common contract types are permanent (CDI – Contrat à Durée Indéterminée) and fixed-term (CDD – Contrat à Durée Déterminée), with probation periods (période d’essai) usually ranging from one to four months depending on the role. It is customary to provide meal vouchers (titres-restaurant), supplementary health coverage, and coverage for transportation costs exceeding 50% (for public transport commutes). Many industries follow sector-specific collective agreements, which may stipulate additional benefits or protections.