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Payroll in FrFrance.






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Euro (€) (EUR)

With its prime location close to the Atlantic Ocean and other European countries, France is an excellent place to scale a company. However, growth of any kind is not without its challenges. Establishing payroll, for example, is one of the most complex areas.

Taxation rules in France

France utilizes a progressive tax rate that depends on the income per “parts” in a household. Each adult counts as 1 part. Children also count as parts — an employee’s first 2 children equal 0.5, then each additional child equals 1 whole part.

Employers have to contribute to Social Security approximately 45% of the employee’s gross salary. The 5 components of compulsory coverage include social security, unemployment, pension plan, life and disability coverage, and healthcare coverage.

France payroll options for companies

You can find the best fit for your company among numerous France payroll options, such as:

  • Internally: Internal payroll is when you add more resources and employees to your France subsidiary and run payroll directly out of your office in France. This option requires more time and money than others.
  • Third-party payroll processing company: You can also choose to hire a payroll processing company in France to outsource your payroll. You’ll still be held liable for any payroll mistakes that your company makes.
  • With G-P: Our innovative technology platform automates payroll with a 99% on-time status in 150 currencies. ​

How to establish payroll in France

Once you decide on your preferred payroll option, you’ll need to gather personal information from each of your employees, including their full name, pension details, phone number, and more. You’ll also need their Social Security number.

Before you can officially hire employees and add them to your payroll, you should provide a written employment contract that spells out the job’s details. A strong employment contract can save you money down the road. It’s best to include the employee’s salary and bonuses, contract duration, probationary period, and termination terms.

Entitlement and termination terms

One of the best things you can include in an employment contract is a probationary period. That way, if an employee is terminated during that time, you won’t have the risk of a high severance package or a complicated termination process.

The notice period for a permanent contract varies, depending on the company and the length of service. The length of the notice time is determined by:

  • The Collective Bargaining Agreement (CBA)
  • The employment contract
  • Industry practices
  • Local law

The most common duration is 3 months.

The amount of severance pay an employee is entitled to also depends on the CBA and the employee’s length of service. Those employed with permanent contracts for more than 8 months are entitled to severance pay based on their salary over the past 3 or 12 months, whichever is greater.

According to the Labor Code, and if the CBA applicable is not more advantageous, severance is paid as follows:

  • 1/4 of the employee’s monthly salary for every year of employment for the first 10 years
  • 1/3 of the employee’s monthly salary for every additional year

Streamline global payroll management with G-P.

G-P streamlines each step of the payroll management process with our market-leading Global Growth Platform™. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.

Contact us to learn more about how we can support you.


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.

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