How Social Security Contributions Work in France: A guide for Overseas Employers


If you are planning to hire in France, you may be looking for more information on social security contributions there. You should ensure that you budget is sufficient for these, as social security contributions are one of the biggest expenses to be faced when running a business in France. Independently whether you run a company employing staff or are self-employed.

Social Security Registration process in France

It is employer’s responsibility to complete all the necessary formalities to ensure that their employees are covered by social security. In order to register the staff, you must provide Union de Recouvrement des Cotisations de Sècurité Sociale et d’Allocations Familliales (URSSAF) with the document unique d’embauche up to a week before they are due to start.

What is the Employee contribution?

The employees’ portion of social security contributions comes to around 25% of gross salary. All contributions are withheld from their pay checks, so no action is required.

What is the Employer contribution?

As an employer, you are entitled to pay 35% of their gross salary. Moreover, it is your responsibility to ensure that your staff have an adequate insurance. Should you hire somebody on a casual basis, make sure they are registered as self-employed.

Any failure to comply with the local social security law will result in the fine of €3,269 (2017). Or double the amount in case a new infringement occurs within two years of notification.

Employer and Employee Social Security Rates 2018

Charge

Employer

Employee

Family benefits

5.25%/3.45%*

0.00%

Health/Sickness

13.00%

0.00%

Social Charges

0%

9.70%

Accident at work

3%

0%

Unemployment Benefit

4.05%

0.00%

Main Pension

10.45%

7.30%

Complementary Pension

17.00%

11.20%

Total

50%

28%

*Lower rate payable up to salaries 3.5 times minimum wage.

French labour legislation is notoriously complicated and allows little space for negotiation. Not mentioning that trying to manage everything on your own can be overwhelming.  However, it should not stop you from doing business there. Contact Bradford Jacobs today to get all the necessary help from our experts.