When it comes to hiring remote talent, exploring outside your country’s borders offers countless benefits. European countries like France have a large talent pool of highly educated and skilled workers. Hiring in France is particularly desirable for employers looking to expand operations in Europe.
Keep reading to learn more about the cost of hiring remote workers in France, including wages, taxes, benefits, and more.
The Benefits of Hiring Employees in France
As an employer, expanding your recruitment efforts in France offers numerous advantages.
Access to European Markets
France is centrally located among Spain, Switzerland, Belgium, and Italy – some of Europe’s most important economies. France also has one of the largest economies in Europe.
Having a team that’s familiar with the French and neighboring markets can be a stepping stone for companies looking to establish or expand their presence in Europe.
The Language
French is the official language of France and is spoken by the vast majority of the population. French is also an official language in the neighboring countries of Belgium, Luxembourg, Monaco, and Switzerland. Again, if you have business in these countries, having workers in France can be an advantage.
Highly Educated Workers
France’s education system is renowned for its rigor and emphasis on academic excellence. University admissions can be highly competitive and many schools have rigorous entrance exams.
This results in a vastly skilled talent pool, ready to tackle the challenges of today’s rapid market changes.
The Cost of Hiring Employees in France
Every country has unique and complex labor laws. As such, you should familiarize yourself with the specific costs of hiring in France.
We have summarized the main factors that contribute to the overall cost of hiring employees in France.
Wages
In France, the minimum hourly wage as of 2023 is €11.52, and the minimum monthly wage is €1,747.20 based on a 35-hour work week. However, certain professions have their own minimum wage set out by sector-specific regulations or collective bargaining agreements.
There is also overtime pay. If an employee works more than 35 hours in a single workweek, they will receive no less than 110% of their regular wage as per their contract.
If overtime pay is not included in the employment agreement, the employee is entitled to 125% of their regular pay for the first eight hours worked above the usual 35-hour workweek, and 150% for any additional hours.
Payroll and Corporate Taxes
In France, the standard corporate tax rate is 25%. This only applies to companies that have established an entity in France.
Employers must also pay payroll taxes at a rate of 31.3%. This includes:
- 13%: Health, Maternity, Disability, Death
- 8.55%: Old Age Insurance (ceiling of €3,311)
- 5.25% or 2.45%: Family Benefits
- 4.05%: Unemployment (ceiling of €13,244)
- 0.3%: Autonomy Solidarity Contribution
- 0.15%: AGS (Wage Guarantee Insurance)
Mandatory Benefits
Workers in France are entitled to certain benefits from their employer, such as:
- Old-age pension
- Solidarity allowance for the elderly
- Long-term disability pension
- Short-term disability pension
- Spouse’s pension
- Death grant
- Workers Compensation
The cost of these benefits will vary depending on the specific package offered.
Supplemental Benefits
In France, the government provides universal health insurance coverage for all residents. However, it’s commonplace for employers to provide supplemental coverage.
Other supplemental benefits that are optional but typically expected by employees in France include:
- Retirement and death benefits
- Short-term and long-term disability
- Career termination indemnities
- 13th-month bonus
Paid Leave
In France, all employees are entitled to 30 days of paid leave annually regardless of whether they work part-time or full-time.
French residents are also entitled to a paid day off on all of France’s 10 national public holidays.
This includes:
- January 1: New Year’s Day
- April 7: Easter Monday
- May 1: Labor Day
- May 8: Victory Day 1945
- May 18: Ascension Day
- May 29: Whit Monday
- July 14: Bastille Day
- August 15: Assumption
- November 1: All Saints' Day
- November 11: Armistice Day
- December 25: Christmas Day
Severance Pay
Terminating employees in France incurs a severance pay. France’s labor laws require employers to pay one-quarter of a month's salary per year of employment, up to ten years. Beyond ten years of employment, one-third of a month's salary must be paid per year of employment.
How an Employer of Record Can Help You Manage Your Team in France
Thinking of hiring remote workers based in France? Consider partnering with an Employer of Record (EOR). Without an EOR, you would need to set up a legal entity in France, which can be an incredibly long and difficult process.
An Employer of Record is a legal entity that employs global hires on your behalf. The EOR will act as the legal employer on paper, helping you navigate the process of hiring workers in France while ensuring compliance with local tax and employment laws.
Borderless can help you hire and pay employees in over 150 countries, including France. Our platform helps companies grow, hire, pay, and manage their teams across the world. Contact our team today to book a demo.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
