France Payroll Solutions

Contractors in France can be set up in 2 ways, Employed and Self Employed.

Contractors can be employed in France by a Portage company. The French system is complex and a Portage is not the
exact equivalent of an Umbrella company in the UK but it is the nearest France has available.

Truly independent contractors can be engaged under the self-employed model. However French nationals often do prefer employment over self-employment and it is not rare for contractors to approach the authorities directly to request a reclassification of their status. As a result the type of service being offered should be clearly explained and agreed by all parties before proceeding.

Tax year – The tax year is the calendar year for individuals

Immigration – Nationals of other EU/EEA and Switzerland must register their residence with the municipal office
(Prefecture) within three months of arrival.

Workr Fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions

Employment Summary

Registration – The SS authorities (URSSAF) must be informed of the hiring of a new employee prior to the commencement of the assignment.

Registration with the relevant pension and welfare funds must also be completed prior to the start of employment. – the Workr service assists with this process.

Contract – Open-ended contracts (CDIs) are the norm.

Fixed-term contracts (CDDs) can be used in specific circumstances (i.e.: replace a permanent employee who is absent,
workload peaks, to carry out specific projects or work that is temporary in nature)

Employers Social security – Due to the complexity of the French system, employer’s SS contributions are being considered at the rate of 45% of the gross salary (actual contributions can vary a lot depending on the level of the worker – managerial/professional or clerical and a number of other factors). So this is just a ball park figure.

Employees social security system is very intricate, with various rates applying to different funds based on varying income ceilings, so for guidance only, it can be assumed an average of 20-23% of the gross salary will be paid as SS contributions.

Tax – Progressive rates from 0% to 45% – at the brackets set by the French government.

Benefits – Holidays: 30 days/5 weeks per year (2.5 working days per month of service with the employer, excludes
Sundays and public holidays)

There are 11 public holidays and only 1st May is guaranteed by law; the remainder may be provided as a day off if this is stipulated by the relevant CBA (Collective Bargaining Agreement)

Sick leave: after one year of service, employer needs to top up the sick pay paid by the SS system up to 90% of normal
earnings from day 8 for the next 30 days of absence, then up to 66.66% for the subsequent 30 days. CBAs may improve

Severance: fixed-term contracts will attract an end-of contract accrual of approx. 10% of total cost.
Notice period: one month for employees between six months’ and two years’ service; two months’ notice after two

Self-Employment Summary

Registration – Social security, Tax and VAT are all registered for under the self-employed option.

Contract – Fixed-term and open-ended contracts can be used in France.

Social Security – SS: for guidance only, 45% applied to the net profits (up to a ceiling – of €39,732 per annum or €3,311
per month).

Tax – Progressive rates from 0% to 45% – at the brackets set by the French government.

Benefits – Allowable expenses include subsistence and hotel accommodation during business trips, cost of a second home and other expenses associated directly with the running/carrying out of the business activities. Strict rules apply so all need to be documented (original receipts) and limits can apply.

Workr International Services Map