Hiring Employees in France
The minimum growth wage (SMIC) in France is set at €11.88 per hour, or €1,801.80 per month, as of 1st November 2024. This is based on the legal working time of 35 hours per week for full-time employees.
In France, individual income tax rates are calculated on a progressive scale. For the 2024 tax year, the tax rates for each band of taxable income are as follows:
PAYE Tax Rates (2025):
0% tax rate, which applies to annual earnings up to €11,497.
11% tax rate, which applies to annual earnings from €11,497 to €29,315.
30% tax rate, which applies to annual earnings from €29,315 to €83,823.
- 41% tax rate, which applies to annual earnings from €83,823 to €180,294.
- 45% tax rate, which applies to annual earnings above €180,294.
The French pension system consists of two mandatory schemes: the basic state pension and a supplementary pension scheme. Employers are required to make payments towards both and can range in costs from 40-45% of an employee’s gross salary.
In France, a standard full-time working week is 35 hours, typically working Monday to Friday between 9am and 6pm. Any hours worked over this are considered overtime and employers are legally obliged to compensate any employees working overtime, either financially or additional paid time off (RTT).
Employee’s leave consists of several types:
- Statutory time off or paid leave, which is a minimum of 25 days per year for full-time employees
- Public holidays (there are 11 bank holidays per year in France)
- Maternity, Paternity and Parental leave
- Sick leave
Termination of an employment contract in France can occur in the following ways:
- Economic reasons, such as redundancy
- Personal reasons, such as poor performance or misconduct
- By mutual consent through a settlement agreement
- Other legal or substantial reasons
All dismissals require a minimum notice period to be given, which increases according to length of service.