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Payroll in France
France payroll isn't just about getting the numbers right. It's about understanding a system where social charges can reach 45% of gross salary, and where missing the monthly URSSAF declaration deadline triggers automatic penalties starting at €150.
You'll work with one of Europe's most detailed social security systems, with over 20 different contribution types split between employee and employer responsibilities. The French approach prioritizes worker protection through extensive benefits, but this means complex calculations and strict compliance requirements.
What makes France payroll distinctive
French employees expect monthly salary payments, typically on the last working day of the month. The 13th month bonus isn't legally required but it's common practice in many sectors and collective agreements.
The social charge system is particularly complex. Employer contributions alone average 42-45% of gross salary, covering everything from health insurance to unemployment benefits. These aren't optional. They're mandatory for all employees from day one.
France payroll at a glance
Collective bargaining agreements (conventions collectives) often supersede standard employment law. They affect everything from minimum wages to holiday entitlements. Most industries have specific agreements that modify base requirements.
French payslips must be in French and include detailed breakdowns of all deductions. Employees have the right to receive explanations of any payroll changes. Employers must maintain payroll records for five years.
Key employer obligations
- Monthly URSSAF social security declarations due by the 15th
- Annual social security reconciliation (DADS-U)
- Quarterly supplementary pension contributions
- Mandatory profit-sharing for companies with 50+ employees
One Global Payroll handles France's complex social charge calculations and ensures your URSSAF declarations meet every deadline. You can focus on growing your French team without compliance stress.
How does payroll work in France?
France employers must pay employees monthly. The standard pay date is the last working day of the month, though many companies choose to pay on the 25th or 30th.
Monthly payroll cycle
Payroll processing
Days 1-20Calculate salaries, deductions, and contributions
Payroll validation
Days 21-25Review and approve payroll calculations
Payment execution
Last working dayTransfer salaries to employee accounts
Reporting
By 5th of following monthSubmit social security declarations (DSN)
Payment timing requirements
French labor law requires monthly salary payments with no exceptions for salaried employees. Hourly workers can be paid weekly or bi-weekly, but monthly is standard across all employment types.
Payments must arrive by the last working day of each month. If you choose an earlier date like the 25th, you must stick to it consistently. Late payments trigger automatic penalties of 10% of the gross salary plus interest at the legal rate (3.99% in 2026).
13th month bonus
The 13th month payment isn't legally required in France, but it appears in about 85% of collective bargaining agreements. When required, it's typically paid in December or split between June and December.
The amount equals one month's gross salary, calculated as the annual gross salary divided by 12. If an employee worked less than a full year, you'll prorate the payment based on months worked.
Vacation pay calculation
French employees earn 2.5 working days of paid vacation per month worked, totaling 30 working days (5 weeks) annually. Vacation pay uses the higher of two methods: the average salary over the 12 months before vacation, or 1/10th of total gross compensation earned during the reference period.
Most employers pay vacation at the regular monthly rate and make adjustments if the 1/10th method yields more. The vacation reference period runs from June 1 to May 31 of the following year.
Payment methods and requirements
All salary payments must go through bank transfer to a French or EU bank account. Cash payments are prohibited except for amounts under €1,500 per month, and even then, bank transfer is strongly preferred.
Bank transfer mandatory
Employers must obtain employee IBAN details and process payments through secure banking channels. International wire transfers to non-EU accounts require additional documentation.
For international employees without French bank accounts, you'll need to help them open accounts or use specialized payroll banking services that meet French payment regulations.
Payslip requirements
French payslips must include specific mandatory elements in French language. Each payslip must show gross salary, all deductions itemized, net salary, employer contributions, year-to-date totals, and employee classification according to the applicable collective agreement.
| Required Element | Details |
|---|---|
| Employee information | Full name, position, classification level |
| Salary breakdown | Gross salary, overtime, bonuses, allowances |
| Deductions | Social contributions, income tax, other deductions |
| Employer contributions | All social security contributions paid by employer |
| Net amounts | Net salary, year-to-date net, take-home amount |
Electronic payslips are legal and widely used, but employees can request paper copies. You must store payslip records for 50 years. This unusually long retention period is unique to France and strictly enforced during labor inspections.
What taxes apply in France?
Before your first payroll run in France, you'll need SIRET registration with INSEE and payroll tax registration with URSSAF. Both are mandatory before paying any employee.
Income tax brackets
France uses a progressive tax system with rates from 0% to 45% for 2026. The tax-free allowance remains substantial, protecting lower earners from income tax entirely.
| Annual Income (€) | Tax Rate |
|---|---|
| €0 - €11,294 | 0% |
| €11,295 - €28,797 | 11% |
| €28,798 - €82,341 | 30% |
| €82,342 - €177,106 | 41% |
| €177,107+ | 45% |
These brackets apply to taxable income after standard deductions. The 10% standard deduction (minimum €468, maximum €13,522) reduces taxable income automatically.
Monthly withholding uses annualized calculations, so employees earning €2,400 monthly (€28,800 annually) hit the 30% bracket immediately.
Withholding requirements
You must withhold income tax from every payslip starting with the first payment. France's "prélèvement à la source" system requires real-time withholding based on each employee's tax rate provided by the tax administration.
New employees without a tax rate get the neutral rate - typically 0% for income under €1,420 monthly, scaling up to 43% for high earners.
Monthly filing deadlines
File DSN (Déclaration Sociale Nominative) by the 15th of the following month. This single declaration covers income tax withholding and social contributions.
Late filing triggers €750 penalty per employee for delays over 30 days. The penalty doubles for repeated violations within 12 months.
Critical deadline
DSN filing due 15th of each month. €750 penalty per employee for delays over 30 days.
Pay withheld taxes to URSSAF by the 15th alongside social contributions. No separate tax payment required - it's bundled with your social contribution payment.
Tax registration
Register for payroll taxes through URSSAF's online portal within 8 days of hiring your first employee. You'll need your SIRET number and employment contract details.
Required documentation:
- Company registration certificate (K-bis)
- Employment contracts for all employees
- Workplace risk assessment document
- Bank account details for direct debit setup
URSSAF assigns your payroll account number within 5 business days. You can't process compliant payroll without this number.
Special tax considerations
Non-resident employees face different withholding rules. EU residents use standard rates, but non-EU residents may need 30% minimum withholding regardless of income level.
Tax treaty benefits apply automatically for most countries, but you must verify treaty status for each non-resident employee. The US treaty provides significant withholding reductions for qualifying employees.
Regional taxes
France has no state or regional income taxes - only national income tax applies. This simplifies calculations compared to countries with multiple tax layers.
Common tax mistakes
Using wrong tax rates is the biggest error. Always use the rate from the employee's tax notice, not neutral rates, once available. Neutral rates are temporary only.
Missing DSN deadlines costs €750 per employee. Set up automated reminders for the 15th of each month.
Incorrect non-resident treatment triggers tax authority audits. Verify residency status and treaty benefits before the first payroll run, not after.
Forgetting annual reconciliation creates compliance gaps. File annual DADS-U by January 31st to reconcile all withholding for the previous year.
Employer contributions in France
The biggest employer cost in France? Social security contributions at 45.5%.
France's employer contributions are among the highest in Europe, adding significant cost to every hire. Here's what you'll pay on top of each salary.
Contribution breakdown
| Employee pays | Employer pays | |
|---|---|---|
| Social Security | 22.0% | 45.5% |
| Unemployment | 2.4% | 4.05% |
| Pension (AGIRC-ARRCO) | 7.87% | 12.95% |
| Health Insurance | 0% | 13.0% |
| Contribution Type | Employer Rate | Employee Rate | 2026 Cap |
|---|---|---|---|
| Social Security | 45.5% | 22.0% | €176,220 |
| Unemployment (Pôle emploi) | 4.05% | 2.4% | €176,220 |
| Pension (AGIRC-ARRCO) | 12.95% | 7.87% | €141,456 |
| Health Insurance | 13.0% | 0% | - |
| Work Accident Insurance | 0.68% | 0% | - |
| Family Allowances | 5.25% | 0% | - |
| Housing Fund (1%+ companies) | 0.45% | 0% | - |
The rates vary slightly by company size and sector. Companies with over 250 employees pay additional training contributions at 1% of payroll.
Total employer cost breakdown
For a €60,000 annual salary:
- Base salary: €60,000
- Social security: €27,300
- Unemployment: €2,430
- Pension: €1,440
- Health insurance: €780
- Other contributions: €450
Total employer cost: €92,400 Cost multiplier: 1.54 (you pay 54% more than the base salary)
This means every €1,000 in salary costs you €1,540 total.
Contribution caps and high earners
Good news for high earners
Most contributions cap at €176,220 in 2026, reducing your cost multiplier for salaries above this threshold.
Social security and unemployment contributions cap at €176,220 annually. Once an employee's salary exceeds this threshold, you'll only pay contributions on the capped amount.
For a €200,000 salary, your effective contribution rate drops to approximately 48% instead of 54%.
Health insurance and family allowances have no caps - you'll pay the full rate regardless of salary level.
Registration requirements
You must register with multiple French agencies before hiring:
- URSSAF (social security): Register within 8 days of first hire
- Pôle emploi (unemployment): Automatic registration through URSSAF
- Pension funds: Registration required within 30 days
- Work accident insurer: Must declare activity and risk level
You'll need your SIRET number, business registration documents, and details of your first employee to complete registration.
Payment deadlines and penalties
Strict payment deadlines
Contributions are due by the 15th of each month for the previous month. Late payments incur 10% annual interest plus penalties.
Monthly contributions are due by the 15th of the following month. For January payroll, contributions must be paid by February 15th.
Late payment penalties are severe:
- 10% annual interest on outstanding amounts
- Additional 5% penalty for payments over 30 days late
- Potential criminal charges for repeated non-payment
URSSAF accepts direct debit, which most employers use to avoid missing deadlines. Set up automatic payments when you register to prevent costly penalties.
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Leave and benefits in France
Maternity leave in France is 16 weeks at 100% pay for social security purposes. Here's how it affects your payroll.
The good news? Social security (Sécurité Sociale) covers most parental leave payments, but you'll still handle calculations and potentially top-ups depending on your company policy.
Annual leave
France guarantees 25 working days of paid annual leave (5 weeks). Employees earn 2.08 days per month worked.
Vacation pay calculation: Pay employees their normal salary during vacation. If they work irregular hours, calculate based on average earnings over the 12 months before leave.
Carryover rules: Employees can carry over unused days to May 31st of the following year. After that, days are typically lost unless your company policy is more generous.
Termination payout: You must pay out all accrued, unused vacation days at termination. Calculate using the employee's final salary rate.
Sick leave
Employees get unlimited sick days with a doctor's certificate. The payment split depends on how long they've been with you.
Payment responsibility: Social security pays the base amount after a 3-day waiting period. You're responsible for the difference to reach full salary (if your company policy provides it) and any payments during the waiting period.
Certification: Employees need a medical certificate for absences over 3 days. For shorter absences, your company policy determines requirements.
Payroll impact: You'll pay the employee normally, then claim reimbursement from social security. The process takes 2-4 weeks typically.
| Employee receives | You handle | |
|---|---|---|
| Sick pay rate | Up to 100% | Top-up difference |
| Waiting period | 3 days unpaid | May pay per policy |
| Reimbursement | Direct payment | Claim from CPAM |
Parental leave
Maternity leave: 16 weeks total (6 weeks before birth, 10 weeks after). Social security pays based on average salary over the 3 months before leave, capped at €3,864 monthly in 2026.
Paternity leave: 25 days total. The first 4 days are mandatory and paid by the employer at full salary. The remaining 21 days are paid by social security using the same calculation as maternity leave.
Your payroll role: You'll often advance the social security payments to employees, then get reimbursed. Many companies also top up payments to reach 100% of salary.
Parental leave tip
Set up advance payment agreements with social security to smooth cash flow. The reimbursement process typically takes 2-3 weeks.
Public holidays 2026
France has 11 national public holidays. Work on these days typically requires double pay or compensatory time off.
| Date | Holiday | Notes |
|---|---|---|
| January 1 | New Year's Day | National |
| April 21 | Easter Monday | National |
| May 1 | Labour Day | National |
| May 8 | Victory in Europe Day | National |
| May 29 | Ascension Day | National |
| June 9 | Whit Monday | National |
| July 14 | Bastille Day | National |
| August 15 | Assumption of Mary | National |
| November 1 | All Saints' Day | National |
| November 11 | Armistice Day | National |
| December 25 | Christmas Day | National |
Regional variations: Alsace and Moselle have additional holidays (Good Friday and St. Stephen's Day). Mayotte and other overseas territories have different holiday schedules.
Mandatory benefits affecting payroll
Meal vouchers (tickets restaurant): Not mandatory but used by 85% of companies. Employer contributes 50-60% of face value, employee pays the rest through payroll deduction. Maximum employer contribution is €6.50 per voucher in 2026.
Transport subsidies: You must reimburse 50% of public transport costs. For employees using personal vehicles, you can provide up to €800 annually tax-free.
Supplementary health insurance (mutuelle): Mandatory since 2016. You must provide and pay at least 50% of premiums. Average cost ranges from €80-150 monthly depending on coverage level.
Prevoyance insurance: Covers salary continuation during illness and death/disability benefits. While not legally mandatory for all sectors, collective agreements often require it.
Health insurance deadline
New employees must be enrolled in company health insurance within their first month. Missing this deadline can result in social security penalties.
Compliance requirements in France
France requires you to keep payroll records for 5 years. Lose them and face €3,750 fines per missing employee file during labor inspections.
French payroll compliance centers on precise monthly filings, detailed employee documentation, and strict record-keeping. The penalties escalate quickly - from €45 daily fines for late social security declarations to €15,000 for missing employment contracts.
Critical deadline alert
DSN (social security) declarations must be submitted by the 5th or 15th of each month. Late submissions trigger automatic €45 daily penalties.
Monthly filing requirements
DSN (Déclaration Sociale Nominative)
Submit your DSN through net-entreprises.fr by the 5th of each month for companies with fewer than 50 employees, or the 15th for larger employers. This replaces multiple previous declarations and covers social security, unemployment, and pension contributions.
The DSN includes individual employee data: wages, hours worked, leave taken, and contribution calculations. Missing or incorrect data triggers automatic rejection notices within 48 hours.
Late filing penalties: €45 per day until submission, capped at €4,500 per month.
URSSAF contributions
Pay social security contributions by the 15th of each month for the previous month's payroll. Use the URSSAF online portal or authorized bank transfer.
Underpayments incur 5% penalties plus 0.2% monthly interest charges.
Annual reporting
Year-end reconciliation
Complete your annual DSN summary by January 31, 2027 for 2026 payroll data. This reconciles all monthly submissions and identifies any discrepancies.
Submit individual tax certificates (certificats de salaire) to employees by January 31. Employees need these for their personal tax returns.
Audit requirements
Labor inspectors (inspection du travail) can audit payroll records without notice. They review employment contracts, payslips, working time records, and leave documentation.
Audit frequency: Approximately 8% of French employers face inspections annually, with higher rates for companies with compliance issues.
Required audit documentation
- Employment contracts in French
Must include all mandatory clauses
- 12 months of payslips per employee
With all required elements
- Working time records
Daily hours for each employee
- Leave and absence documentation
Vacation, sick leave, maternity
Employee documentation
Employment contracts
All employment contracts must be in French and include specific mandatory elements: job description, workplace location, salary details, working hours, trial period terms, and collective bargaining agreement references.
Missing contract penalty: €15,000 per employee during inspections.
Payslip requirements
French payslips must contain 43 mandatory elements, including detailed contribution breakdowns, cumulative year-to-date figures, and specific legal mentions. Use the standardized format introduced in 2018.
Provide payslips by the last working day of each month. Electronic delivery requires employee consent with secure access systems.
Missing payslip elements: €750 per violation per payslip.
Record retention
Maintain payroll records for 5 years from the end of the employment contract. This includes contracts, payslips, time records, and leave documentation.
Store working time records separately for 3 years minimum, as labor inspectors frequently audit overtime calculations.
Penalties table
| Violation | Penalty |
|---|---|
| Late DSN filing | €45 per day (max €4,500/month) |
| Missing employment contract | €15,000 per employee |
| Incorrect payslip elements | €750 per violation |
| Late URSSAF payments | 5% + 0.2% monthly interest |
| Missing payroll records | €3,750 per employee file |
| Undeclared work | €45,000 + criminal charges |
| Incorrect working time records | €2,000 per employee |
Key 2026 compliance dates
January 31: Annual DSN summary and employee tax certificates due. Monthly: DSN by 5th/15th, URSSAF payments by 15th.
Regulatory bodies
URSSAF (Social Security)
Oversees social security contributions and employment compliance. Each region has local URSSAF offices, but most interactions happen through urssaf.fr.
Contact: urssaf.fr portal for declarations and payments Phone: 3957 (€0.12/minute)
Direction Générale du Travail (DGT)
Manages labor law enforcement through regional labor inspectors. They conduct workplace audits and investigate employee complaints.
Reporting portal: signalement.travail-emploi.gouv.fr
Service des Impôts des Entreprises (SIE)
Handles corporate tax matters and payroll tax audits. Contact your local SIE office for specific tax questions.
Business tax portal: impots.gouv.fr/professionnel
The French administration increasingly uses automated systems to cross-check data between agencies. Inconsistencies between DSN filings and tax declarations trigger automatic review flags, often leading to audits within 6-12 months.
Managing France payroll compliance in-house? See how we simplify it
Recent changes in France
Using 2025 tax brackets? You're withholding incorrectly. Here's what changed.
France updated several key payroll elements for 2026, with the most significant being tax bracket adjustments and contribution rate changes that affect every employee's net pay.
Tax bracket updates
Income tax brackets - Effective January 1, 2026
The tax-free threshold increased from €10,777 to €11,294 for 2026. This means employees earning up to €11,294 annually pay zero income tax.
| Income Range (€) | Tax Rate | 2025 Rate |
|---|---|---|
| 0 - 11,294 | 0% | 0% |
| 11,295 - 28,797 | 11% | 11% |
| 28,798 - 82,341 | 30% | 30% |
| 82,342 - 177,106 | 41% | 41% |
| 177,107+ | 45% | 45% |
Impact: Employees earning between €10,778 and €11,294 will see their income tax drop to zero. Update your payroll system immediately to avoid over-withholding.
Payroll system update required
Most payroll systems auto-updated tax brackets on January 1, 2026. Verify your system reflects the new €11,294 threshold to avoid incorrect withholding.
Social contribution changes
Health insurance contribution rate - Effective January 1, 2026
The employee health insurance contribution decreased from 0.5% to 0.4% of gross salary. This affects all employees regardless of salary level.
Unemployment contribution - Effective January 1, 2026
The unemployment contribution rate for employees increased from 2.4% to 2.5% of gross salary up to the social security ceiling (€46,368 for 2026).
| 2025 rates | 2026 rates | |
|---|---|---|
| Health insurance (employee) | 0.5% | 0.4% |
| Unemployment (employee) | 2.4% | 2.5% |
Minimum wage adjustment
SMIC increase - Effective January 1, 2026
France's minimum wage increased 2.1% to €11.88 per hour (€1,801.20 monthly for 35 hours). The previous rate was €11.65 per hour.
Action required: Review all salaries at or near minimum wage levels. Employees earning €1,766-€1,801 monthly need immediate salary adjustments to meet the new minimum.
Upcoming changes
Pension reform implementation - Effective July 1, 2026
Additional pension contribution requirements for high earners (above €100,000 annually) will increase employer contributions by 0.3%. Start budgeting for this mid-year change now.
Frequently asked questions about payroll in France
Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Regulations change frequently, so always consult with local experts and official government sources for your specific situation.