France is a developed country that ranks the world's 7th largest economy by nominal GDP and 9th largest regarding PPP. The country consistently performs well in international rankings of education, healthcare, life expectancy, and human development. This has made it a preferred place for employees and employers worldwide to expand their businesses in France. The leading sectors that are known to significantly contribute to the country's GDP include agriculture, tourism, energy, transport, science and technology, fashion design, education, and art.
France is expected to experience higher demand for professionals in the following industries: Information Technology, Finance, Supply Chain & Procurement, tax, Legal & Compliance.
Below are the average salaries of some jobs in France for 2021. Please refer to Salary Explorer for more information.
An employee working in France on average earns about 49,500 EUR per year.
The minimum wage in France is €10.03 per hour or €1521.22 per month on a 35 hour working week.
Employees are usually paid their salary per month
13th month salary
It is customary but not mandatory to pay the 13th month bonus at the end of December.
Employee Stock Options
Only listed companies may grant stock options or free shares as defined by the French Commercial Code.
For corporate officers who do not have an employment contract, the French Commercial Code provides for some limits in the event of free shares or options awards. The incentive plan must comply with those limits in order to benefit from the favorable tax and social regime.
Read more on ESOP taxation here.
The standard work hours in France is 35 hrs a week but collective bargaining agreements may set a different standard.
The maximum working hours are :
The companies are entitled to compensate employees for overtime hours worked in the following structure:
The list of public holidays can be found here.
An employee who has worked for 12 months in continuance, is entitled to 5 weeks of paid leave annually.
The social security health system in France pays an employee on sick leave a daily benefit, and the employee is legally required to only make up the difference between that benefit and the employee's normal compensation.
Employees are entitled to 3 working days of leave for the birth of their child. In addition to this, they are further entitled to 11 days of paid leave.
The termination process is moderately simple.
A valid reason is necessary for termination accompanied with a reasonable notice period unless termination is due to misconduct in which no notice is required.
It is mandatory for employers to provide insurance benefits to employees with a minimum of 1 year of service. The contribution must be 1/5th of one month's salary for each year of service plus an additional 2/15th of one month's salary for every 10 years of service (1 month of salary after 10 years' seniority).
Contribution = ⅕(1 month salary)(every 1 year) + 2/15(1 month salary)(every 10 year)
Companies are required to maintain health, life, and disability coverage for their former employees up to 9 months when the work contract termination happens.
The standard VAT in France is 20%. However, the reduced rates for certain sectors and industries are 10%, 5.5%, 2.5%, 0% respectively.