HR Software for France
Leave Policy
Maternity Leave
Pregnant employees are entitled to 16 weeks of paid leave. Six weeks must be taken before the birth of the child. During this period, the employee receives the average salary of the last three months before taking the vacation, up to a maximum of EUR 3,428.
The employer is responsible for this payment and it is reimbursed by social security.
The employee cannot extend the vacation, but is entitled to parental leave if he or she has worked for the same employer for at least one year.
You can use the leave module in IceHrm to manage maternity leave in France
Paternity Leave
Employees are entitled to 25 calendar days of paid paternity leave. Four days must be taken after the birth of the child. The remaining days can be divided into two periods of at least 5 days each before the child reaches the age of six months.
The employee receives the average salary of the last three months before the vacation, but no more than EUR 89 per day. During this period the employer is responsible for payment.
The employee cannot extend the vacation, but is entitled to parental leave if he or she has worked for the same employer for at least one year.
Parental Leave
Employees are entitled to up to one year of parental leave. The employee can either take all of the vacation, where the contract is suspended, or part of the vacation, where he must work at least 16 hours per week.
In the second option, the employee can determine the working hours himself, but they must be agreed with the employer. If parental leave is taken in full, it is unpaid. If the employee takes part of the vacation, he or she receives the pro-rata salary.
Parental leave can be extended until the child reaches the age of three.
Sick Leave
Employees are entitled to different lengths of sick leave and different pay rates depending on their classification in a particular occupational group, the number of years of service with their current employer and the number of sick days they take. The employer, social security and any life insurance are jointly responsible for paying for sick leave.
Employers are required to pay between 10% and 100% of the employee’s regular salary depending on the above factors.
| Period | Pay | Payer |
|---|---|---|
| 0 – 3 days | 0% | N/A |
| 4+ days | 50% of base salary | Social Security |
Pay & Tax
Minimum Wage Requirements
The basic minimum wage is €1,776.90 per month and is based on the company’s collective agreement.
The following minimum wages apply to employees hired under the EOR model:
- Basic and junior positions: €2,704.80 per month
- Management position: €3,284.40 per month
- IceHrm’s collective agreement is the Portage collective agreement and the minimum salary is based on the Social Security cap.
Individual Income Tax
Individual income tax is up to 45%. Income tax is calculated at progressive rates. Several additional factors can affect overall rates, such as: the household status and the number of children.
| Gross Annual Income | Tax Rate (%) |
|---|---|
| Up to EUR 10,777 | 0% |
| From EUR 10,778 to EUR 27,478 | 11% |
| From EUR 27,479 to EUR 78,570 | 30% |
| From EUR 78,571 to EUR 168,994 | 41% |
| Over EUR 168,995 | 45% |
Payroll Cost
Depending on the employee’s salary, special calculations may be made, and the estimated employer costs can be up to 50+%.
- Illness, maternity, disability, death:
1. Additional insurance for disability and death – 0.89% for salaries below EUR 3,666.00*.
2. Accidents at work-occupational diseases – 0.75%. - Social security capped – 8.55% up to a maximum salary for the contribution of EUR 3,666.00
- Social insurance without cap – 1.90%
- Family benefits:
1. Unemployment insurance – 4.20% up to a maximum salary for the contribution of EUR 14,664.00
2. Retirement pension – 6.26% for salaries below EUR 3,666.00* - Other contributions (apprenticeship levy, training levy, promotion of paritarianism) – 2.906%**
- Housing benefit FNAL – 0.10% up to a maximum salary for the contribution of EUR 3,666.00
- Occupational medicine – 0.41% + flat fee of EUR 9.53 up to a maximum salary for the contribution of EUR 3,666.00
- Additional contribution for permanent contracts – 1%
- Complementary health services – EUR 42.50 (the exact costs will be determined when starting the activity)
- Fee for medical visits – Monthly fee: EUR 4.90
- Fee for mandatory electronic safe – EUR 3.46
- Costs for time recording software – EUR 3.00
*The rate varies for salaries above EUR 3,666.00.
**Other contributions cover the following:
- Apprenticeship Tax – Tax to facilitate equal access to apprenticeships and to contribute to the development of training programs.
- Training Tax – Tax to support training programs for employees and job seekers
- Promoting paritarianism – financing employee unions and employers’ associations
Please note that according to the collective agreement, a mandatory business allowance of 5% of the employee’s salary is payable. The salary on the basis of which the costs are calculated includes the gross monthly salary + 5% compulsory business allowance.
Annual costs
Annual medical fee – EUR 50
Overtime Pay & Maximum Hours
The standard working hours are 7 hours per day and 35 hours per week. The normal working week lasts from Monday to Friday.
Overtime pay is mandatory for part-time employees. Employees who are hired under the “day pass” contractual condition are not entitled to overtime pay. Hours worked outside of normal working hours are considered overtime. Part-time employees can work a maximum of 1/10 of the weekly hours, which are paid at 110% of the hourly rate.
Termination
Termination Requirements
Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.
Notice Period
The notice period is at least 1 day and increases depending on the length of employment.
- 24 hour notice period for periods of service of less than 8 days
- 48 hours notice period for employees with employment between 8 and 30 days
- 14 days notice period for employees with employment between 30 and 90 days
- 30 days’ notice if you have been with the company for more than 90 days
After the probationary period:
- Up to 6 months of employment: The notice period depends on the applicable collective agreement, the employment contract or the practices of the profession
- 30 days notice period for seniority between 6 months and 2 years
- 60 days notice period if you have been with the company for more than 2 years.
Severance for Employees
In France, severance payments are mandatory in the event of dismissal, breach of contract or mutual termination of employment. The amount of the severance payment depends on the employee’s length of service and the collective agreement. In France, it is common for employers and employees to agree on a severance payment that is above the prescribed minimum.
- In the first 10 years of employment: 1/4 of the monthly salary per year.
- After 10 years of service: 1/3 of the monthly salary per year.
In order to protect you from unforeseen financial risks arising from the termination of an employment relationship, IceHrm applies a severance pay provision in all employment contracts in this country. IceHrm has extensive expertise in managing litigation risk around the world and our severance provision calculation is based on prevailing common law or statutory requirements and best local practices. If your employee resigns or is not entitled to severance pay, you will receive a refund of any unused amounts.
Statutory Time Off
Paid Time Off
Both full-time and part-time employees are entitled to 25 days of paid time off (PTO) per year. PTO is credited monthly for 2.08 days per month. The vacation cannot be carried over to the following year.
Employees cannot take all 25 days together, but must take at least 5 days individually. Employees must take PTO from May 1 through October 31.
During this period, PTO should be at least 12 days and must be agreed upon with the employer.
Public Holidays
In France there are 11 national and 2 regional holidays, which depend on the employee’s place of residence.
National holidays include:
- New Year’s Day
- Easter Monday
- Labour Day
- Ascension Day
- Victory Day
- Whit-Monday
- French National Holiday
- Assumption Day
- All Saint’s Day
- Armistice Day 1918
- Christmas
Regional Holidays
- Good Friday
- St. Stephen’s Day
Onboarding
Onboarding
2 working days after signing the SOW
Additional Info
Employment Contract Details
The contracts must be drawn up in French and can be bilingual. They must be in writing and signed by both parties.
A contract must contain:
- Name
- Start date
- Length of the employment
- Job description
- Termination conditions
- Collective bargaining agreement
Probation Period
In France, a probationary period is required. The minimum probationary period depends on the company’s collective agreement and the employee’s area of work. For employees hired under the EOR model, the minimum probationary period is:
- 3 months for technicians, extendable for another 3 months
- 4 months for senior employees and can be extended for a further 4 months