What is a rupture conventionnelle in France?

It is a mutual termination agreed by employer and employee and approved by the labor administration. The employee receives at least the legal severance and can claim unemployment benefits. It is the most common way to end a permanent contract without a dispute.

How often does the French minimum wage change?

The SMIC is revalued every 1 January and automatically during the year if inflation passes 2%. In 2026, it rose in January and again on 1 June, to EUR 12.31 gross per hour. Check pay near the minimum after each change.

How does Good Balance Global hire employees in France?

As your Employer of Record (EOR), we employ your hire under the collective agreement that fits the role. We file the monthly DSN, withhold income tax at source, and enroll the employee in the mandatory mutuelle.

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Payroll and benefits guide

France

CapitalParis

Fiscal Year1 January - 31 December

Date Formatdd/mm/yyyy

CurrencyEUR (Euro)

Payroll FrequencyMonthly

Employer Taxesapprox. 40% – 45%

Employee Costsapprox. 22% – 25%

Overview

Languages: French
Income tax: 0% – 45%
VAT: 20%; Reduced rates: 10%, 5.5%, 2.1%

Contributions

Employer

13%

Health, maternity, and disability insuranceReduced rate for salaries up to 2.25 times the minimum wage (SMIC)

8.55%

Basic old-age pension (capped)Up to the monthly social security ceiling (PMSS)

5.25%

Family allowancesReduced rate for lower salaries

4.05%

Unemployment insurance

4.72%

AGIRC-ARRCO supplementary pension (bracket 1)

Varies

Work accident insurance, training, housing, and transport leviesSet by sector, headcount, and location

approx. 40% – 45%

Total employer costGeneral reductions lower the effective rate near the SMIC

Employee

6.90%

Basic old-age pension (capped)Up to the monthly social security ceiling

0.40%

Basic old-age pension (uncapped)

3.15%

AGIRC-ARRCO supplementary pension (bracket 1)

9.70%

CSG and CRDSApplied to 98.25% of gross salary

approx. 22% – 25%

Total employee costIncludes AGIRC-ARRCO balance contributions (CEG and CET) and other items not itemized above

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

URSSAF

Paid To

Social security contributions

Due Date

5th of the following month (50+ employees) or 15th (under 50 employees)

Method

Monthly social declaration (DSN) and direct debit

Authority Payment

Tax authority (DGFiP), via the DSN

Paid To

Income tax withheld at source (PAS)

Due Date

Same deadline as the DSN

Method

Declared in the DSN and collected by direct debit

Minimum Wage & Working Hours

Minimum wage: EUR 1,867.02 / Monthly; Gross SMIC for 35 hours a week (EUR 12.31 per hour), effective 1 June 2026
Standard working hours: 35 hours per week; Maximum of 10 hours per day and 48 hours in any single week
Overtime: +25% for the first 8 overtime hours per week and +50% after that, unless a collective agreement sets other rates (minimum +10%)

Leave

Annual leave5 weeks (30 working days)Accrues at 2.5 working days per month
Sick leaveFor the length of certified illnessSocial security pays a daily allowance after a 3-day waiting period; the employer tops up pay after 1 year of service
Maternity leave16 weeks26 weeks from the third child; paid by social security up to a daily cap
Paternity leave28 days3 days of birth leave paid by the employer, then 25 days paid by social security
Parental leave1–2 months of paid birth leave per parent, plus unpaid leave up to the child's 3rd birthdayThe supplementary birth leave applies from 1 July 2026. It follows maternity or paternity leave, must start within 9 months of birth, and is paid by social security at 70% of salary in month 1 and 60% in month 2, capped at the social security ceiling. The longer job-protected parental leave is unpaid by the employer
Public holidays11 days

Leave type	Duration	Notes
Annual leave	5 weeks (30 working days)	Accrues at 2.5 working days per month
Sick leave	For the length of certified illness	Social security pays a daily allowance after a 3-day waiting period; the employer tops up pay after 1 year of service
Maternity leave	16 weeks	26 weeks from the third child; paid by social security up to a daily cap
Paternity leave	28 days	3 days of birth leave paid by the employer, then 25 days paid by social security
Parental leave	1–2 months of paid birth leave per parent, plus unpaid leave up to the child's 3rd birthday	The supplementary birth leave applies from 1 July 2026. It follows maternity or paternity leave, must start within 9 months of birth, and is paid by social security at 70% of salary in month 1 and 60% in month 2, capped at the social security ceiling. The longer job-protected parental leave is unpaid by the employer
Public holidays	11 days

Termination

Probation period: Up to 2 months for workers and employees, 3 months for supervisors and technicians, and 4 months for executives; renewable once if the collective agreement allows
Notice period: 1 month (6 months–2 years of service); 2 months (2+ years); collective agreements often set 3 months for executives
Severance pay: At least one-quarter of a month of salary per year for the first 10 years, and one-third per year after that, for employees with 8+ months of service
13th salary: Not statutory, but required by many collective agreements
Notes: Dismissal requires a real and serious cause and a formal procedure; mutual termination (rupture conventionnelle) is common

Benefits

Complementary health insurance (mutuelle)Mandatory
Employer must offer it and pay at least 50% of the premium
Meal vouchersCommon
Tax-advantaged lunch benefit, often split 50–60% employer
Transport reimbursementMandatory
Employer pays 50% of public transit passes
Profit-sharing (participation)Common
Mandatory only for companies with 50+ employees

Visas & Work Permits

Talent Passport
Duration
Up to 4 years
Requirements
Qualified role meeting the salary threshold, such as the EU Blue Card category
Covers highly skilled employees, intra-company transfers, and other categories
Salaried employee residence permit
Requirements
Work authorization approved by the authorities
Standard route for non-EU workers

FAQ

Sources

Last updated: November 1, 2026

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