Employment in France is governed by the Labour Code (Code du travail), and almost every employer is also covered by a sector collective agreement (convention collective) that often improves on the legal minimums. Here is what employers need to know about leave, pay, tax, payroll costs and ending employment.
The Labour Code sets minimum leave for all employees, whatever their contract type, and collective agreements frequently add more. Maternity, paternity and sick pay are mainly paid as daily allowances by the national health insurance fund (CPAM), with employers often topping them up.
2.5 working days (jours ouvrables) per month worked, or 30 days a year, for full-time and part-time staff alike. The standard accrual year runs from 1 June to 31 May.
After 3 waiting days, health insurance pays 50% of the daily base salary (capped). Employees with 1 year’s service also get an employer top-up to 90%, then two-thirds, of pay.
6 weeks before and 10 after the birth for a first or second child; 26 weeks from the third child and 34 weeks or more for multiple births. At least 8 weeks must be taken.
25 calendar days (32 for multiple births), on top of 3 days of employer-paid birth leave. The first 4 days must follow the birth leave immediately.
Set up each French leave type in IceHrm with its own accrual, carry forward and approval rules, including pro-rata entitlements for staff joining mid-year. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
The minimum wage (SMIC) is reviewed every 1 January and rises automatically during the year if inflation passes 2%. Collective agreements set minimum salaries by job grade, which are often higher.
€12.31 per hour for a 35 hour week, from 1 June 2026. Lower rates apply to some employees under 18 and to apprentices.
Hours above 35 are overtime. Maximums are 10 hours a day, 48 hours in a single week and 44 hours a week on average over 12 weeks.
25% for the first 8 overtime hours in a week and 50% after that, unless a collective agreement sets other rates (at least 10%).
Without a collective agreement setting a different figure, the annual overtime allowance (contingent) is 220 hours per employee. Overtime can be replaced in whole or in part by equivalent paid rest.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so the 25% and 50% overtime bands reflect what was actually worked. Time & attendance →
France taxes income by household. Taxable income is divided into “parts” according to family situation (the quotient familial), the scale is applied to one part, and the result is multiplied back. Employers withhold tax at source (prélèvement à la source) each month at a rate supplied by the tax authority.
| Taxable income per part | Rate |
|---|---|
| Up to €11,600 | 0% |
| €11,601 – €29,579 | 11% |
| €29,580 – €84,577 | 30% |
| €84,578 – €181,917 | 41% |
| Over €181,917 | 45% |
Employment income is also subject to social levies, CSG (9.2%) and CRDS (0.5%), which are deducted from pay on 98.25% of gross salary. Employees still file an annual return in spring to reconcile the tax withheld.
French payroll carries a long list of employer and employee contributions, collected mainly by URSSAF. Many are calculated on the monthly social security ceiling (PASS, €4,005 in 2026). On average the employer’s share comes to around 45% of gross salary, with a general reduction lowering the cost for salaries close to the SMIC.
| Contribution | Employer rate |
|---|---|
| Health, maternity, invalidity, death | 13% (7% reduced rate) |
| Old-age pension – on the whole salary | 2.11% |
| Old-age pension – up to the ceiling | 8.55% |
| Family allowances | 5.25% (3.45% reduced rate) |
| Unemployment insurance | 4.00% |
| Wage guarantee (AGS) | 0.25% |
| Solidarity for autonomy (CSA) | 0.30% |
| Housing (FNAL) | 0.10% (under 50 staff) / 0.50% |
| Training contribution | 0.55% (under 11 staff) / 1% |
| Apprenticeship tax | 0.59% + 0.09% |
Employees pay old-age pension contributions (6.90% up to the ceiling and 0.40% on the whole salary), CSG and CRDS, and their share of complementary pension. In total, employee contributions usually take around 22–25% of gross pay.
Build French pay the way you already structure it, with your own salary components, deductions and formula columns, such as contributions calculated on the social security ceiling. Want to know how well IceHrm handles payroll calculations for France? Contact us or see Payroll →
Dismissal of an employee on a permanent contract (CDI) requires a real and serious cause, either personal (conduct, performance, incapacity) or economic. The employer must follow a formal procedure: a letter inviting the employee to a preliminary meeting, the meeting itself, and a dismissal letter stating the reasons.
| Continuous service | Notice |
|---|---|
| Less than 6 months | Per collective agreement or custom |
| 6 months, less than 2 years | 1 month |
| 2 years or more | 2 months |
Employees on a CDI with at least 8 months’ uninterrupted service are entitled to severance on dismissal, except for serious or gross misconduct. Collective agreements often provide more.
| Years of service | Severance per year of service |
|---|---|
| Up to 10 years | 1/4 of a month’s salary |
| Each year beyond 10 | 1/3 of a month’s salary |
Final pay includes any accrued and untaken paid leave. At the end of a fixed-term contract, employees are generally owed an end-of-contract allowance of at least 10% of their total gross pay.
France has 11 public holidays. Only 1 May is a compulsory paid day off by law; whether the others are days off is set by collective agreement or by the employer. Alsace-Moselle and the overseas departments have extra days.
Alsace-Moselle adds Good Friday (in communes with a Protestant or mixed church) and 26 December. Each overseas department also marks the abolition of slavery on its own date. Employers also organise a yearly unpaid solidarity day (journée de solidarité), often on Whit Monday.
Leave groups give each office its own holiday calendar, so staff in Paris, Strasbourg and the overseas departments get the right days off automatically. Holiday calendars →
The permanent contract (CDI) is the normal form of employment. Fixed-term (CDD) and temporary contracts are only allowed for specific, temporary reasons listed in the law, must be in writing and must state their reason, or they can be reclassified as a CDI.
| Category | Initial | With renewal |
|---|---|---|
| Workers and employees | 2 months | 4 months |
| Supervisors and technicians | 3 months | 6 months |
| Managers (cadres) | 4 months | 8 months |
A CDD is generally limited to 18 months in total, including renewals. Shorter or longer limits apply to some cases, such as 9 months while waiting for a permanent recruit and 24 months for exceptional export orders.
Send contracts for e-signing, store them on the employee’s record, and track the DPAE, medical visit and other onboarding steps with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for France, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for France? Talk to us.
Start Free Trial Explore Features Contact Us