1. French citizens and residents have access to a wide range of mandated and supplementary employment benefits in France which make sure employees can enjoy a good work/life balance.
2. French employees have the right to many mandated leave entitlements, while only having to work a maximum of 35-hour a week. During any given year, full time employees can have either 2.5 paid days off a month, or 5 weeks paid holiday leave.
3. Employers are mandated to pay part contributions towards an employee’s health insurance and old-age insurance. They can also offer voluntary private health insurance packages to attract the best talent.
4. One way for international companies to remain competitive in the French market is by offering optional benefits including meal vouchers, an extra month’s salary, wellness extras, or payments for work equipment.
5. Whether you are looking to diversify your team, or just try out a new market, a Global EOR/PEO can help you hire French employees support your entrance into French market quickly and compliantly.
Workers enjoy a wide range of mandatory and non-mandatory employment benefits in France, with all benefits as an addition to their regular wage or salary. Employers looking to hire employees in France must be aware of what their minimum obligations are in terms of employee benefits, so they can be compliant with French employment law and know the costs around hiring in France. Knowing the benefits can also help employers know if they need to offer extra benefits on top to attract and procure top talent in France and remain competitive in their field.
This article is an employer’s guide that goes through the mandatory employee benefits in France.
What are employee benefits in France relating to working hours and overtime?
The French labour code stipulates several mandatory benefits that French citizens working within French jurisdiction are entitled to. The first block of important mandatory benefits relates to working hours, overtime, and minimum wage.
The French enjoy much shorter working weeks than many other countries as a government mandated benefit. There are also strict daily hourly limits and overtime rules that employers must adhere to. Some of these mandated rules are discussed below.
What are the employee benefits in France relating to leave?
French employees get a lot of paid time off in comparison to many other countries. Under French law, this time off includes annual, sick, and parental leave.
Employee healthcare contributions in France
French residents enjoy universal health care which is contributed by the French Government. However, employers and employees also contribute through payroll taxes at a rate of 80% by employer and 20% by employee. As some medical costs are not covered by the state, there is also an additional private health insurance as an extra safety net. Employers are only required to pay half of this insurance, but many offer it as an added benefit to each of their remote or onsite employees, and can extend coverage to an employee’s family members.
Pension contributions in France
As part of the French Social security scheme, old-age insurance or pension contributions are contributed to by both employers and employees across three different methods. Two of these are mandated by law and one as a voluntary supplementary contribution. Pension contributions are made by both employer and employees, and all businesses hiring employees in France must be aware of these obligations.
The mandated minimum rate that is contributed monthly by employers as part of the basic scheme is 0.4% of total earnings and by employees 0.6% of total earnings. Employees must have worked for a minimum 42 years and be born before 1952 to be eligible to collect their pension.
On top of this basic scheme, employers and employees also contribute to a complementary retirement pension. Those looking for executive-level employees may offer a private-pension fund contribution on top of both these schemes, but most private pension funds are voluntarily contributed to by employees to boost their retirement savings.
Oversee employee benefits in France with Horizons
If you are looking to diversify your team by including French employees in your workforce, but are not sure how to go about it, Horizons can help. As a leading France PEO, Horizons are experts on French employment law and can help you procure top talent, manage your French payroll and ensure that you offer all mandatory employee benefits in France.
We can also go through some extra benefits that you can offer so your company remains competitive, while helping you enter the French market quickly and in full compliance with the law.
Frequently Asked Questions (FAQ)
French employees enjoy many benefits which helps them maintain a good work life balance. There are mandated rules for working hours, overtime payments, minimum wage, specific leave entitlements, health insurance and pension contributions.
On top of the mandated benefits, some companies like to provide optional or discretionary benefits to their employees to remain competitive and ensure they are procuring the best talent. On top of added voluntary contributions to health and pension plans, many top companies in France offer wellness benefits, meal vouchers, an extra month’s salary, and stipends for attaining and maintaining work equipment, which is slowly becoming more popular for remote positions.