Introduction to French Payroll
A French employment contract must contain; employer and employee names and address, starting date of work, job description, working hours, salary, date of payment and annual leave entitlements. Depending on the contract type, the trial period varies from 1 day to 5 days for short time employment for up to two months. After three months of employment, the minimum probation period is a month. The minimum wage in France is €10.15 an hour from January 2020. The work duration is 35 hours a week.
The sick pay is calculated based on the last three-month salary; the employee receives from CPAM (Caisse Primaire d’Assurance Maladie) around 50% then 2/3 of his daily salary after 31 days of sickness. Sick entitlement is paid from the 4th day of illness. The exception, however, is in the case of COVID-19 period where the payment will start from day one and employers could compensate up to 90% of the salary based on the collective agreement. The maximum daily rate is €45.55 and €60.75 for sickness period over 30 days. The employee must inform their employer if they are too ill to work as soon as possible, and after three day’s absence, a Doctor’s note must be provided.
In the Public Sector, the minimum holiday entitlement is 25 days paid leave at full remuneration. For employees in the Public Sector, they have the right to other holidays on top of the annual leave depending on their service sector. In the Private Sector, the holiday entitlement depends on the company policy; the employee seniority, and it is usually calculated based on 2.5 days per every month worked, i.e. 30 days in a full year. The calculation starts from June 1st of the previous year to May 30th of the current year.
Maternity leave in the French Public and the Private Sectors has a maximum of 16 weeks entitlement (6 weeks prenatal and ten weeks postnatal) with imperatively eight weeks to be taken. The maternity leave could be extended under medical prescription or other circumstances like the birth of a third child or twins. There are particular cases, such as giving birth to a premature child or delayed delivery. For example, the available prenatal time is added to the postnatal leave while the extended period for overdue baby in prenatal will not affect the pending postpartum leave time. CPAM will pay maternity leave based on daily indemnity calculated from the last three months’ salaries. The minimum daily reimbursement can’t be lower than €9.63 and not more than €89.03 paid every 14 days.
The father or the partner has a right to 11 days leave within four months following the birth of the child. The CPAM pays the daily indemnity to the father/partner based on his last three months’ salaries and calculated in the same way as the maternity leave.
Since January 27th 2020, the French government is still discussing retirement changes. However, the actual average age to retire currently is 63 years old with a target of 65 in 2025. The retirement conditions depend on; the public or private sector, the type of work, length of the employee work career and whether the employee is disabled or not. Private sector employees receive their pensions from the social security pension branch. The basic retirement pension may not exceed 50% of the social security ceiling applicable in the year of retirement. For example: in the event of leaving in 2020, the mandatory superannuation cannot exceed € 1,714.00 per month.
Severance, Redundancy & Accidents
Employees are entitled to severance pay, or redundancy compensation if the dismissal is based on operational grounds. The statutory reward is calculated from the gross remuneration received by the employee before the termination of his employment contract. The severance indemnity is calculated based on; the employee seniority, and the total paid of the last 12 months and other legal dispositions.
It is the employer’s responsibility to pay for accident insurance. Statutory accident insurance covers accidents on the way to and from work as well as at work. And it will also cover funeral costs in cases of death.
So if you’ve enjoyed reading about French Payroll and you’d like to learn more you can sign up to our weekly 2-hour bite size course. Or our advanced one-day online course where you can currently save 60% off. All of our courses are CPD certified and accredited. View our training course page today for more information about each course. Or sign up on Eventbrite or Ticket Tailor today. Alternatively, you can contact us about French Payroll training or French Payroll Management.