Employers in France will need to handle in-country compensation laws and benefits management. Not only will you need to meet the statutory minimums, but you’ll also have to understand any Collective Bargaining Agreements (CBAs) that are relevant to your employees. Since France provides a high level of benefits, it is important to budget the right amount for your team. Here are a few things to know about France’s compensation laws.
France compensation laws
France’s current minimum wage is EUR 1,747.20 gross per month (May 2023), but keep in mind that CBAs can impact this amount. The typical workweek is 35 hours, and employees cannot work more than an average of 44 hours per week for 12 consecutive weeks. A single workday cannot exceed 10 hours or 48 hours during the week unless a CBA states otherwise. Overtime is a 25% hourly increase for the first 8 hours of overtime and 50% for every hour after that.
France’s compensation laws don’t require a 13th-month bonus, but a CBA could include different terms. Always negotiate any bonuses before an employee’s start date and get it in writing in an employment contract.
Guaranteed benefits in France
Employees in France receive a variety of guaranteed benefits, including healthcare that’s mostly financed by the government. The government in France refunds up to 60% of patients’ healthcare expenses and up to 100% for costly or long-term issues. Employers must withhold social contributions (cotisations sociales) from the wages or salaries of their employees to cover health insurance.
Every employer must also provide private health insurance to complement French Social Security. CBAs determine the amount of this insurance based on the industry. In most cases, employers must pay a minimum of 50% of the base coverage for employees.
Social security also covers:
- Maternity, paternity, disability, and death insurance
- Occupational accident and illness insurance
- Government pension contributions
- Unemployment benefits
France benefits management
Part of managing benefits for employees in France includes determining what supplemental benefits to provide to bring in a greater talent pool. Since France already offers many guaranteed benefits, employers rarely add additional benefits. Further, non-discrimination rules assert that any additional benefits must be granted to all employees equally.
Restrictions for benefits and compensation
The main restrictions for France compensation laws and benefits management come from CBAs. These agreements can include stipulations for everything from wages to benefits to working hours. It’s crucial to know the specifics of the applicable CBA and talk about those benefits with potential candidates before officially hiring them.
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THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.