Employer of Record (EOR) in France: How to Hire, What It Costs, and How to Stay Compliant

An Employer of Record (EOR) in France lets a foreign company hire French employees legally without setting up a local entity. The EOR becomes the legal employer — running payroll, withholding contributions, and filing with URSSAF — while you keep operational control. France has strong worker protections and among the highest employer charges in Europe (~40–45% of gross), but a 2026 reform sharply reduces those charges on salaries up to three times the minimum wage.

France offers a large, highly skilled workforce and a central position in the EU, but its labour and social-security rules are detailed and heavily regulated. An EOR is the fastest, most compliant way to hire — handling the CDI or CDD contract, payslips, social filings, and benefits while you focus on growth.

Key benefits of hiring in France through an EOR

• No need to register a French company
• Full compliance with the French Labour Code and collective agreements
• Simplified payroll, social security, and benefits administration
• Quick and compliant market entry
• Access to experienced local HR and legal professionals

Why choose an EOR in France?

An EOR serves as the legal employer of your staff in France, handling employment contracts, payroll, and all statutory filings, while you retain control over daily operations. It is ideal for testing the market, hiring a key individual, or building a team quickly — without incorporating and taking on French payroll and compliance directly.

How much does it cost to employ someone in France in 2026?

France’s employer social charges are high — roughly 40–45% of gross salary before reductions — funding health, pension, unemployment, family benefits, and work-accident cover. However, the general reduction (which replaced the former “Fillon” relief in 2026 and now applies up to 3× the SMIC) cuts employer charges to around 10–15% at the minimum-wage level, rising back to the full rate near 3 SMIC. The example below uses €3,000/month gross.

France at a glance

Employment framework

Employment contracts

Employment is formalised through a contract. A permanent contract (CDI) may be oral but must follow the applicable collective agreement (convention collective); a fixed-term contract (CDD) must be in writing and is limited to defined situations. Contracts cover the parties, job title, workplace, salary, hours, paid leave, and notice, and collective agreements may add clauses on probation, mobility, or non-compete.

Probation period

Standard maximums are 2 months for employees, 3 months for supervisors/technicians, and 4 months for executives (cadres), each renewable once where the collective agreement allows.

Working hours & overtime

The legal working week is 35 hours, though many employees work 39 with compensating rest days (RTT). Overtime is paid at +25% for the first 8 hours (the 36th–43rd) and +50% beyond, with an annual cap of 220 hours. Overtime pay is exempt from income tax up to €7,500 net per year.

13th-month bonus

Many companies pay a “13th month” — roughly one extra month’s salary — though it is not mandatory unless required by the collective agreement.

Minimum wage (SMIC) 2026

The SMIC is €12.31 gross per hour, €1,867.02 per month (35 hours) since 1 June 2026 — it rose from €12.02/€1,823.03 on 1 January and was uprated again mid-year when inflation passed the automatic trigger. Many collective agreements set higher sector minimums.

Payroll & taxation

Income tax 2026

Income tax is progressive and applied per household “share” (quotient familial), then withheld monthly at source (PAYE). The 2026 Finance Act raised thresholds by 0.9%:

Social contributions

Employers pay roughly 40–45% of gross (see the cost breakdown above), reduced for salaries up to 3 SMIC by the general reduction. Employees pay about 22–25%, including CSG/CRDS of 9.7% and pension contributions; there is no employee unemployment contribution (abolished in 2018). Contributions use the social-security ceiling (PASS) of €48,060 per year for 2026.

Employee benefits & leave

• Annual leave: a minimum of 5 weeks (30 working days) per year.
• Public holidays: 11 national holidays.
• Maternity leave: 16 weeks (6 before and 10 after birth).
• Paternity leave: 25 days (32 for multiple births).
• Sick leave: social security pays around 50% of salary (IJSS), often topped up by the employer under the collective agreement.
• Retirement: the legal minimum age is rising from 62 to 64 under the 2023 pension reform (about 63 in 2026, reaching 64 by 2030), with the full-rate age at 67.
• Complementary health (mutuelle): employers must offer a group health plan and pay at least 50% of the premium; executives also have mandatory prévoyance cover.
• Common extras: meal vouchers, transport subsidies (50% of public-transport passes is mandatory), and additional pension plans.

Termination & notice periods

Employment can end by mutual agreement (rupture conventionnelle), resignation, or dismissal — and every dismissal must be justified by a real and serious cause. Statutory notice depends on length of service:

Statutory severance (indemnité de licenciement) is ¼ month’s salary per year for the first 10 years and ⅓ month’s salary per year beyond, based on the higher average of the last 3 or 12 months’ pay. Collective agreements often provide more. An EOR manages notice, procedure, and severance per the Labour Code.

Work permits & immigration

EU/EEA and Swiss citizens work freely in France. Non-EU nationals generally need a work and residence permit; common routes include the “Talent Passport” (Passeport Talent) for skilled workers and the intra-company transfer permit. An EOR can support permit applications and registration with the French authorities.

NDA & IP rights

Confidentiality clauses are enforceable where reasonable. Non-competition clauses are valid only if limited in time and geography, justified by the role, and — importantly — accompanied by financial compensation to the employee. Intellectual property created during employment generally belongs to the employer.

What changed for 2026

• Higher minimum wage: the SMIC rose to €12.02/hour on 1 January and again to €12.31/hour (€1,867/month) on 1 June 2026.
• Income-tax thresholds up 0.9%: the 2026 Finance Act indexed the brackets for inflation, with the tax-free threshold now €11,600 per share.
• New employer-charge reduction: the general reduction replaced the former Fillon relief and now applies to salaries up to 3 SMIC, lowering the cost of mid-range hires.
• Retirement age rising: the legal minimum age continues its climb from 62 toward 64 under the 2023 reform.
• Social-security ceiling unchanged: the PASS stays at €48,060/year for 2026.

Frequently asked questions