Our guide to Payroll in France

Doing Business in France

Investing in France

The French Government welcomes inward investment in France, with various incentives particularly in markets that have been subject to hardship during the global recession. State and local governments encourage economic development. Foreign and local investors are treated equally, and are both eligible for investment incentives.

Basic Facts about France

Full Name: French Republic

Population: 67.75 million (World Bank, 2021)

Capital: Paris

Major Language(s): French

Major Religion(s): Christianity

Monetary Unit: Euro

Main Exports: Machinery and transport equipment, agricultural products, including wine

GNI Per Capita :US $45,180 (World Bank, 2023)

Internet Domain: .fr

International Dialing Code: +33

How to say:

Hello: Bonjour

Good Morning: Bonjour

Good Evening: Bonsoir

Do you speak English? Parlez-vous anglais

Goodbye: Au revoir

Thank you: Merci

See You Later: à plus tard

Registrations and Establishing an Entity

The company is not required to have a legal entity established in order to process a payroll. Some conditions however may be required when processing payroll (CNFE registration or a liaison office set up); the main is the “Unions de Recouvrement des Cotisations de Sécurité Sociale et d'Allocations Familiales” (URSSAF) registration which handles social security deductions.

The timescale for completion of this process is four weeks.

Banking

It is not mandatory to make payments to employees or French authorities from an in-country bank account. Generally, banks are open from Monday to Friday 09.00AM to 6.00PM. Some banks are open from Tuesday to Saturday 09.00AM to 5.00PM.

Working Week

The working week in France is Monday to Friday. The legal duration of work is 35 hours per week. The duration can be annualized to 1607 hours or 218 days. In that case, the time at work can be modulated depending on high or low seasons. In counterpart of these annual rules, employees are granted RTT (working time reduction days), extra hours are paid or “recovery days” are granted. It depends on the collective agreement or a corporate agreement.

Employment Law

As of 1st January 2026, the minimum interprofessional gross hourly wage is €12,02 (monthly : €1,823.03 and annually : 21 876). Current rates can be checked at SMIC (salaire minimum de croissance).

Holiday Accrual / Calculations

Employees are entitled to up to 5 weeks of annual leave per year. Generally, the 'holiday' year runs from 1 June - 31 May unless the employer has another fixed period year, but adjustments can be done for some clients who requires from 1st January to 31st December. When annual leave entitlement is not a whole number, it should be rounded up to the nearest whole number.

Annual leave payment is due on the same date as wage payments and the allowance used must appear on payslips.

Maternity Leave

Employees are entitled to at least 16 weeks of maternity leave. Female employees must take maternity leave for at least 8 weeks before and at least 6 weeks immediately after the birth date.

The duration of maternity leave is dependent on the number of expected births and number of children in the household. For a:

• Single 1st birth, 16 weeks maternity leave with 6 weeks to be taken before, and 10 weeks to be taken after the birth date.
• 2nd or 3rd birth, 26 weeks maternity leave with 8 weeks to be taken before, and 18 weeks to be taken after the birth date.
• Twin birth, 34 weeks maternity leave with 12 weeks to be taken before, and 22 weeks to be taken after the birth date.
• Triplet birth or more, 46 weeks maternity leave, 24 weeks to be taken before, and 22 weeks to be taken after the birth date.

Employees cannot be dismissed during pregnancy, maternity leave and ten weeks thereafter. Employers are obligated to pay maternity leave. Legislation on maternity leave is set out in the Labor Code (Code du Travail).

Paternity Leave

The duration of paternity leave is dependent on the number of expected births. For a:

• Single birth, 28 days of paternity leave.
• Twin birth or more, 32 days of paternity leave.

Employees must take 3 working days of birth leave commencing on the birth date, paid by the employer. Employees must then take 4 consecutive calendar days of paternity leave immediately after birth leave, paid by Social Security. During these periods, it is forbidden to employ employees.

Employees are entitled to a further, optional, 21-day or 28-days of maternity leave, respectively. This is paid by Social Security. During paternity and birth leave, the employment contract is suspended. Legislation on paternity leave is set out in the Labor Code (Code du Travail).

Sickness

An employee is obliged to notify their employer of their absence with a medical certificate within 48 hours. An employee must also provide a medical certificate for an extension of their absence. It is recommended that the employee sends their medical certificate by registered letter with acknowledgement receipt.

During sick leave, an employee's employment contract is suspended. Sick leave allowance is paid by daily social security allowances and the employer simultaneously determined from a collective agreement.

Social security allowance is paid after the third day of sick leave. Employees must pay:

• 90% of gross salary for the first 30 days of sick leave.
• 66% of gross salary from the 31st day and beyond.

The duration of sick allowance increases by 10 days every 5 years after an employee has worked 5 years of service. For example, from 6 years of service, an employee will receive 90% of gross salary for the first 40 days.

National Service

There are no national service obligations in France.

Income Tax

The French Ministry of Economy and Finance is responsible for tax administration. From January 2019, personal income taxes are withheld on pay slips.

The current system of income tax collection is replaced by a withholding tax “PAS” (“prélèvement à la source”). It covers most incomes: salaries and wages, pensions, replacement income, self-employment income and property income.

Therefore, the employer will become a collector and third-party payer of personal income taxes.

Social Security

The social security ceiling for 2026 is €4,005 per month, and consequently to €48,060 a year.

There are several different social security institutions on behalf of whom the employer may have to deduct contributions. These institutions administer the following:

Payroll

An employer must provide a pay slip (legal obligation); paper or electronic pay slips are very common in many workplaces. From January 2017, electronic pay slips were authorized in France, unless the employee is disagree.

Reports

Payroll reports must be kept for at least five years. The records can be kept electronically as long as the records can be printed out on request.

Payslip Example

Reporting

Employers are required to file monthly DSNs (Nominative Social Declaration) to the DGFIP (Public Finances General Directorate). The DSN return can be filed using payroll software or directly online. A DSN submission can be issued up to 1 month in advance and up to 3 months late, but late submissions attract penalties. Employees must be formally told that their personal data is transmitted via DSN.

The DSN return is a consolidated return which covers the following:

• DUCS Urssaf - summary statement of contributions and annual summary
• DUCS for Agirc and Arrco complementary pension funds
• DUCS for pension funds and contribution slips for Health and insurance companies
• UAD-DADS — substitution was effective from January 2018 for companies issuing DSNs from January 2017 salary slips)
• DMMO / EMMO - the declaration and investigation of labour movements
• Salary certificate for the payment of 'daily allowances' in the event of sickness maternity, paternity, accident at work and occupational disease (IYDD)
• Employer certificate for France Travail (AE)
• Cancellation of collective agreements for supplementary health, welfare and supplementary pension organizations
• the formalities of the special schemes: IEG, SNCF civil aeronautics, etc.
• Monthly Mission Statement (MMR) for temporary employment agencies (ETTs)
• MSA contribution declarations

The DSN return includes a periodic return of pay and social security contributions data known as the “Déclaration Unifiée de Cotisations Sociales” (DUCS return). The DUCS return acts as one unified return for all the social insurance organisations to which the contributions are paid. The return covers the following:

• Number of employees
• Contribution base for each deduction for each employee
• Amount of employee contribution
• Amount of employer contribution

New Employees

A new starter that has a social security number will require a Hiring Declaration (DPAE). A social security number is mandatory for anyone starting any employment. The “Déclaration Préalable à l'Embauche” (DPAE) is a key document that all employers must file for each new hire in the 8-day period before the employee commences work.

The purpose of the DPAE is to:

• Declare that the employee is about to work for the company
• Apply to register the employee for general social security
• Apply to register the employee for unemployment insurance
• Apply to register the employee with the occupational health service (DDTEFP)
• Prompt the arrangement of the compulsory medical examination required on commencing employment
• Add the employee to the expected list of records on the annual DADS (“Déclaration Annuelles des Données Sociales”) return.

The DPAE can be submitted electronically, either from payroll software or by direct input.

Leavers

There is no specific timescale for leavers to receive their final payment. Final documents must be returned at the end of the following month.

No specific notification must be made to authorities in the event of a leaver; however, a France Travail wage certificate must be filled in on the website of the unemployment agency.

Employee Benefits

Expenses

General expenses should be refunded only on receipt and are not subjected to social charges. If a company car is also for private use it must be considered as a benefit in kind, subjected to social charges and income taxes.

Benefits In Kind

The luncheon vouchers called “Ticket Restaurant “entitles the beneficiary to purchase, in whole or in part a meal or, food preparation. These are supported partly by the employer and can be used during the calendar year of issue. The amount of the luncheon vouchers is freely determined by the employer and the company funds 50% of their value at least and 60% maximum.

According to French law, the part paid by the company may be exempted from social security contributions- but only if the distribution of vouchers is strictly justified (no double payment with reimbursement of expense report, etc.).

The distribution of luncheon vouchers by the employer is not mandatory for the companies who have catering premises at their employee’s disposal.

Any employee (including temporary workers) can receive one luncheon voucher per meal included in their daily work schedule. Part-time employees whose daily work schedule does not include the lunch hour are not entitled to luncheon vouchers. This quantity of vouchers may be reduced if the employee is on sickness leave or if he is having a business lunch and being refunded through expense report.

Visas & Work Permits

Individuals who are citizens of a country within the European Union (EU) or European Free Trade Association (EFTA) do not require a work permit.

SHORT-TERM VISA OR VISA DE COURT SEJOUR

• This type of visa is for tourist trips, business trips or for family visits.
• This visa allows its holder to participate in short training courses, internships or conferences, company meetings, or carry out a paid activity.
• Duration does not exceed 90 days.

LONG-STAY VISA OR VISA DE LONG SEJOUR

• This visa is for an extended tourist trip, carry out professional activity, purse education or to join family members.
• The duration of this visa must be between three months and one year.

None listed beyond regulatory agency names and minor process differences already included in other sections.

Further Information

For more information, or assistance with France Tax enquiries please contact: gi@activpayroll.com

About This Payroll and Tax Overview

Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.