What does it really cost to hire an employee in France? France is often seen as an employee-friendly country with strict employment protections. While employment law isn’t necessarily complex, employers must follow highly structured and rigorous procedures, especially particularly when it comes to termination. So how does this translate into actual costs?
In France, employer social contributions (payroll taxes) are high. On top of that, you’ll need to factor in additional mandatory benefits and insurances, such as prévoyance and mutuelle.
In this guide, we’ll break down the full cost of employing someone in France. We’ll also provide a detailed look at social contribution rates and common benefits like pensions and private healthcare, so you know exactly what to expect.
Employer Social Contributions in France
Employer social contributions (employer payroll taxes) in France are also known as “charges patronales”. They are known to be high in France, especially if employees receive a high salary, the employment costs are raising significantly due to the increased pension contribution.
Below we have outlined the components of the employer’s social contribution:
|
Component Employer
Social Contribution
|
|
|
|
Gross annual salary
|
€ 60.000
|
€ 90.000
|
|
Gross monthly salary
|
€ 5.000
|
€ 7.500
|
|
Employer Social Contribution (in %)
|
38.22%
|
38.22% |
|
Employer Social Contribution (in £)
|
€ 1.911
|
€2.867 |
|
(Sub)Total Monthly Employer’s Cost
|
€ 6.911
|
€ 10.367 |
|
(Sub)Total Annual Employer’s Cost
|
€ 82.933
|
€ 124.402
|
*This includes the supplementary pension split:
- Tranche 1 (6.22%) on the portion of salary up to €3,925/month
- Tranche 2 (14.78%) on the portion above €3,925/month
*Also includes health, family, unemployment, old age insurance (capped), accident insurance, apprenticeship tax, and life/disability.
Key benefits in France: Mutuelle and Prevoyance
Two common/key benefits in France include the Mutuelle (a complementary Health Insurance) and the Prevoyance (a life and disability insurance).
The mutuelle is a top-up health insurance that covers medical costs not fully reimbursed by the French public healthcare system (Sécurité Sociale). In France, the state system typically reimburses 60–70% of basic healthcare costs, and the mutuelle covers all or part of the remaining amount (co-payments, dental, vision, etc.).
Employers are legally required to provide a mutuelle to their employees. Employers must cover at least 50% of the cost; employees pay the rest via payroll deduction.
The prévoyance is complementary insurance for life, disability, and long-term illness risks. It provides additional income protection in situations like income loss due to long-term sick leave or temporary disability. For managers or executives, employers are obliged to provide their employees with the prevoyance. For non-cadres (operational workers, non-managers) it is not legally required but sometimes included in certain collective bargaining agreements.
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