🇫🇷 Hiring in France

💡 Everything you need to know to hire and manage employees in France through Toku. Toku handles payroll processing, tax withholding, social contributions, and statutory compliance. This guide covers what you need to plan costs and manage your team.

At a Glance

Onboarding a New Hire

Plan for 6-8 business days between submitting a new hire and their start date. France requires a pre-hire declaration (DPAE) filed at least 48 hours before the start date, and Toku asks for 5 business days to complete it. Toku also enrolls the employee in mandatory supplementary health insurance (mutuelle) at hire, and arranges the required medical exam before the end of probation; the employee just needs to attend.

Submit your new hire through the Toku platform and we take it from there: local employment agreement, statutory registrations, and payroll setup. See Onboard Contributors as a Client Admin in Toku for the step-by-step process, and the Country Readiness Live Tracker for lead times across all countries.

Employer Costs

France has one of the highest employer contribution burdens in Europe. On top of each employee's gross salary, you pay:

As a rule of thumb, total cost of employment is roughly 142-147% of gross salary. A 13th month salary is not required by law, but some collective agreements (for example banking and insurance) mandate one; Toku will confirm whether your employee's agreement does.

Employees pay their own contributions of roughly 20-23% (pension, social charges such as CSG and CRDS, and supplementary pension), plus income tax withheld at source. These come out of gross salary, not on top of your costs. Toku calculates and remits all of the above.

Compensation & Payroll

Toku runs one payroll per month in France, and employees receive a detailed payslip (bulletin de paie) each cycle. The minimum wage (SMIC) is EUR 12.31 gross per hour as of 1 June 2026, which is EUR 1,867.02 gross per month for a 35-hour week; many collective agreements set higher sector minimums. Where a 13th month applies, it is typically paid in December or split between mid-year and year-end.

Employment Contracts & Probation

• Toku issues a compliant local employment agreement for every hire, drafted in French as the law requires (a bilingual version can be provided).
• The indefinite-term contract (CDI) is the default. Fixed-term contracts (CDD) are only allowed in specific circumstances and are generally capped at 18 months including renewals.
• Probation is 6 months under Toku's employment agreement, in line with the renewal rules of the Labour Code and applicable collective agreement.

Working Hours

The standard legal working week is 35 hours. Hours beyond 35 count as overtime: 125% pay for hours 36 through 43 and 150% from hour 44, with an annual cap of 220 overtime hours (collective agreements can vary this). The absolute maximum is 48 hours in any week. Autonomous managers can instead work under an annual working-day arrangement (forfait jours, typically 218 days per year). France also has a mandatory right to disconnect outside working hours.

Leave Entitlements

Annual leave accrues at 2.08 days per month over a reference year running 1 June to 31 May, and employees must take at least 12 consecutive working days during the main summer period. Maternity, paternity, and most sick pay are funded by Social Security, with the employer topping up sick pay after a waiting period.

Public Holidays (2026)

France has 11 national public holidays in 2026. Only 1 May is a mandatory day off by law; for the others, time off depends on the collective agreement and company practice. The Alsace-Moselle region observes two additional holidays (Good Friday and 26 December).

Benefits: Required vs. Common Extras

Statutory (included in employer costs above): universal healthcare through Social Security, a state pension plus the mandatory Agirc-Arrco supplementary pension, unemployment insurance, and fully employer-funded workplace accident coverage. On top of this, French law requires employer-provided supplementary health insurance (mutuelle) covering at least 50% of the premium, and income protection insurance (prevoyance) for managerial employees.

Toku enrolls every French hire in a compliant mutuelle as part of onboarding. See France Supplementary Health Insurance for plan details and coverage.

Common extras in the French market include meal vouchers (titres-restaurant, with the employer typically funding 50-60% of face value), the mandatory 50% subsidy of public transit passes, company savings plans, and profit-sharing schemes. Toku can advise on the cost impact of any extras you want to offer.

Ending Employment

France does not recognize at-will employment: every dismissal needs a "real and serious cause" and must follow a strict procedure of convocation, preliminary interview, and formal notification, so involve Toku early, before any termination conversation happens. For the process, see How to Terminate an Employee or Contractor and the France Termination Process Guide.

Statutory severance applies after 8 months of service (except for gross misconduct): one quarter of a month's salary per year of service for the first 10 years, and one third per year after that, with many collective agreements providing more. A mutual termination agreement (rupture conventionnelle) is a common alternative and requires at least the statutory severance amount plus approval by the labor authorities.

Hiring Someone from Overseas?

EU, EEA, and Swiss nationals can work in France without a permit. Other nationals generally need both a work permit and a residence permit: the Passeport Talent (up to 4 years, no labor market test) is the main route for highly skilled hires, while standard salaried permits require showing that no suitable local candidate is available. Processing takes roughly 2 to 4 months, so talk to Toku before extending an offer to a candidate who needs sponsorship.

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Last verified July 2026. This guide is for general information and doesn't constitute legal or tax advice. Your Toku account manager can confirm specifics for your situation.