Payroll and HR in France

Payroll and HR in France

Local Information

Local Time (LIVE):6:29 PM
Local Currency:$1 = €0.83
Business Language(s):French (recommended), English
Tax Year Dates:1st January – 31st December

 

For companies looking to expand internationally, France offers up huge opportunities as the second-largest economy and exporter in the EU. The country continues to maintain its status as a world leader in trade and tourism as well as research and development. Its main exports include machinery, such as for aircraft, spacecraft, and vehicles.

In addition to the economic opportunities in France, business owners can enjoy the added benefit of the country’s strategic position. Part of the reason behind France’s trade success throughout history is due to its location close to other wealthy countries. It’s bordered by Belgium, Luxembourg, Germany, Switzerland, Italy and Spain. Not forgetting the UK to the north, and the Atlantic Ocean to the west – historically offering advantageous links to the Americas. Travel in and around France is simple, with extensive public transport networks as well as 50 airports. The largest international airport, Paris-Charles de Gaulle Airport, offers flights to almost 300 destinations in 113 different countries.

Despite the strategic advantages and opportunity for growth, there are a number of challenges to overcome when doing business in France, none more so than payroll and HR. With unique social security systems in place, high corporate rates and naturally, a language barrier, it’s vital to understand the ins and outs of French legislation, payroll and HR compliance. This is where IRIS FMP’s HR and payroll services will help.

Working & Living in France

For information on what it’s like to work and live in France, check out our Living & Working in France Guide.

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Details correct at time of publication. You should not rely on these details without first seeking professional international advice.

Employer Must-Dos

In France, the following reports must be submitted to strict deadlines

  • Shares & BIK (Benefit in kind)
  • Declaration Annuelle des Donnees Sociale (DADS)
  • Fiche Fiscal/Employee Summary of Earnings
  • ASSEDIC
  • URSSAF
  • Declaration Nominative Annuelle (DNA)
  • Gras Savoye

Payroll in France

Payslips

In France, employees must receive a payslip even if they are paid through bank transfer. Payslips should be issued in electronic form.

What tax considerations are there?

Personal Income Tax (PIT)

There is no monthly personal income tax deducted in France, this is deducted yearly. Unlike other European countries, the French social security system is funded through social security contributions. To remain payroll compliant at all times, employees and employers must contribute a specified amount to the social insurance system whilst ensuring other mandatory processes are implemented.

Corporate Income Tax (CIT)

Both resident and foreign companies are subjected to income tax on all income derived from France. There are different rates of tax depending on the income of the business. Those earning between €0 – €500,000 in profits must pay 28% tax for the 2019 and 2020 financial years, 26.5% for the 2021 financial year, and 25% for the 2022 financial year. Companies earning more than €500,000 in profits are subjected to 31% tax, and those earning more than €250 million are subjected to 33.33%.

HR in France

What are the regular working hours in France?

In France, the regular working hours are 35 hours a week. Overtime is calculated differently depending on the hours worked after regular working hours. There are exemptions for those in particular roles.

Vacation, maternity and sickness

Employees in France are entitled to a generous five weeks of annual leave. The holiday year usually runs from 1st June to 31st May, and holiday days are accumulated at a rate of 2.5 days per month. Employment law in France also dictates how these days should be taken. For example, an employee cannot take more than 24 days of leave at one time, they must take at least 12 days for their main holiday period, and the fifth week of leave must be taken separately to the main holidays.

Pregnant employees in France are entitled to a minimum of 16 weeks of paid maternity leave. Up to six weeks of this can be taken before the birth, and the remainder should be taken afterwards. It is possible to reduce maternity leave to eight weeks if preferred (two weeks prior and six weeks after the birth are compulsory.

Employees who have given a minimum of one year’s service are entitled to up to 90 days of paid sick leave. A medical certificate must be provided within the first 48 hours of sickness, and the employee must have made social security contributions to qualify for benefits.

Termination

Like other European countries, an employee cannot be terminated unless for a reason under the ‘Code Du Travail’. This includes gross misconduct.

If either party wishes to terminate the employment, the appropriate notice must be given. The notice period differs according to length of service and is usually between one and three months.

business in lyon

 

HR and Payroll in Paris

The capital of France has acted as a business hub for Europe for centuries. There are business, political, and cultural links with the rest of Europe, Africa, and the Arab world, as well as international transport links. The city is perhaps surprisingly small, at just over 105km², and yet is the home of many reputable, international companies including Cartier, Europcar, and EDF energy.

As well as 218km of Paris Metro tracks, the city has European-wide railway links, and Paris Charles de Gaulle Airport is the second busiest airport in Europe. This makes it an ideal location for international businesses to settle in.

HR and Payroll in Lyon

After Paris, Lyon is the biggest economic hub in France. There are more than 100,000 companies working in a variety of sectors. It’s home to Sanofi-Pasteur, the world’s largest producer of human vaccines, and Renault Trucks which was founded in 1978. Excellent education establishments in Lyon attract almost 150,000 students, and 10% of these are international. This makes Lyon an ideal location for finding the right talent for your business.

Business properties in Lyon are around 30% less expensive to rent than those in Paris, and the city’s focus on sustainable development means that investment is made on innovative services and experiments. The Lyon-Saint Exupery airport offers flights to 115 destinations, and rail infrastructure allows quick transportation to some of Europe’s biggest cities.

Want to know more?

If you would like to know more about international payroll and the implications and considerations that come along with it, download our free guide to international payroll today.

Download Our Guide

IRIS FMP’s HR & Payroll Services for France

IRIS FMP is dedicated to providing tailored, cost-effective HR and payroll services that meet your company’s individual requirements. Whether in Paris or Marseille, with a single point of contact and in-country teams, you have the guidance you need, whenever you need it. Whether you need information on company formation, tax compliance, visas or general payroll and HR, we can help. Our services include:

  • French Employment Contracts
  • Payroll Processing
  • Handling of social charges
  • Handling of payments (salaries & social charges)
  • Annual declarations (lodging, apprenticeship & training taxes for concerned companies)
  • Relations with social bodies
  • Regulatory Compliance
  • Tax and Labour Law Consulting
  • Assisting in payroll audit (or payroll department audit)
  • Assistance for URSSAF audit
  • Handling of confidential payroll
  • Assistance in company restructuring plan
  • Assistance in implementation of procedures
  • Assistance with start-up (in link with lawyers)

Stay Compliant - Payroll and HR Services in France

If you need a global HR and payroll partner, look no further than IRIS FMP. We’re experts in French payroll and HR compliance, legislation and employment law - helping you to grow your business internationally. We’ll help give you peace of mind by dealing with the complexities while you get on with the important stuff.

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