Employment Cost Calculator for France
Calculate the total cost of employing someone in France, including taxes, benefits, and our management fee.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Social Security Contributions | Approx. 45% (Employer average) | Gross Salary |
| CSG (Contribution Sociale Généralisée) | 9.2% (Employee) | Gross Salary |
| CRDS (Contribution au Remboursement de la Dette Sociale) | 0.5% (Employee) | Gross Salary |
| Taxe sur les Salaires (Payroll Tax) | Progressive rates: 4.25% - 20% | Employee's Income |
Filing & Compliance
- Monthly DSN (Déclaration Sociale Nominative):
- Companies with 50+ employees: By the 5th of the following month.
- Companies with fewer than 50 employees: By the 15th of the following month.
- Event-based DSN: Within 5 days for events like work stoppage or contract termination.
- New Hire Declaration (DPAE): At least one day before employment starts.
In France, employers deduct various taxes and social security contributions from employee salaries. These deductions fund social programs like healthcare, pensions, and unemployment benefits, and contribute to the individual's income tax liability.
Income Tax
- Progressive System: France's income tax system is progressive, with rates increasing based on income levels. Tax residents are taxed on worldwide income, while non-residents are taxed only on French-sourced income.
- Standard Deduction: A standard 10% deduction is applied to employment income, capped at a specific amount (the cap for 2022 income was €13,522. The cap amount for 2025 needs to be confirmed). Employees can opt to deduct actual professional expenses instead, but this requires detailed record-keeping.
- Additional Tax for High Earners: High-income earners (single taxpayers with household income above €250,000, or couples above €500,000) might face an additional tax to ensure a minimum effective tax rate of 20%. This complex calculation considers various factors and is applicable for income received between 2024 and 2026.
Social Security Contributions
- Comprehensive System: France's social security system covers healthcare, work accidents, retirement, family allowances, and unemployment.
- Employer and Employee Contributions: Both employers and employees contribute to social security. Employer contributions average around 45%, while employee contributions range from 20% to 23%. Actual rates depend on several factors, including company size, industry, and collective bargaining agreements.
- Specific Programs: Social security contributions fund various specific programs, each with its own contribution rate and calculation method.
Other Deductions
- Tax Credits and Reductions: Employees might benefit from tax credits or reductions for certain expenses, such as home care, childcare, donations, and union dues. A 60% advance payment of these credits is typically issued in January, based on the previous year's expenses. Any overpayment needs to be reimbursed later in the year. Adjustments to this advance can be made before a specific deadline (December 12th of the preceding year in some cases).
- CSG and CRDS: The Contribution Sociale Généralisée (CSG) and Contribution au Remboursement de la Dette Sociale (CRDS) are social security contributions deducted directly from salaries. While most social security contributions are deductible when calculating income tax, CSG and CRDS are partially non-deductible.
Reporting and Deadlines
- Annual Income Tax Return: All residents and non-residents with French-sourced income must file an annual tax return. Deadlines for online filing typically fall between late May and early June, varying by department, with paper return deadlines usually in mid-May.
- Payslips: Employers must provide monthly payslips (electronic or paper) detailing salary, deductions, and contributions.
- DSN (Déclaration Sociale Nominative): Employers must submit a monthly DSN declaration to social security organizations. Deadlines vary based on company size: the 15th of the following month for companies with fewer than 50 employees, and the 5th for companies with 50 or more employees.
- Share Plans: For employee share plans, specific reporting requirements and deadlines apply, typically by March 1st of the following year, with accompanying documentation for the employee's annual tax return.
It's crucial to remember that this information is current as of today, February 5, 2025, and might be subject to change. Consulting official government resources or a qualified tax advisor is always recommended for personalized advice.
