When hiring employees, companies must plan for more than just salaries. Social charges are a key part of their budget and compliance obligations. Here is a quick overview of the most common charges for an employer in France:
1. Social security contributions
Employers typically pay approx. 40% of each employee’s salary to fund state benefits such as healthcare, pensions and unemployment insurance. Such payments are made directly to French state funds on a monthly basis.
2. Private health insurance
These schemes supplement state pensions. In France, employers must provide private health insurance (including life and death hazards) for their employees. Such scheme is partially paid for by the employer with the employee also making contributions from their salary.
3. Expense reimbursement
Employers must cover the costs of expenses made by employees when performing their duties. This includes train or plane tickets, reimbursement of meals. When employees work remotely, their costs, such as internet, equipment, or electricity, must also be paid by the employer.
France offers strong social protection and it comes with substantial employer costs. Properly budgeting for social charges and complying with legal requirements is essential when hiring in France.
Need help navigating French employment law? Feel free to contact MGG Legal for tailored advice.