Payroll Services in France
Fully managed French payroll – URSSAF and AGIRC-ARRCO contributions, the new single degressive relief, withholding tax at source and the monthly DSN filed on time, with an English-speaking specialist a phone call away.
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What French payroll actually involves
French payroll adds up about a dozen employer contributions, each with its own base and ceiling, then applies a relief that changed completely on 1 January 2026. Everything is reported every month in a single filing, the DSN.
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Calculate Your Employee Costs in France
Enter a gross annual salary to see the employer cost of a French employee: health, family, pension, unemployment and workplace-accident contributions at the 2026 national average, plus the employer share of the mutuelle. It is shown before the single degressive relief, which lowers the cost of every salary below about EUR 65,600 a year.
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*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertFrance
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Employer Costs in France Explained
Statutory employer contributions in France come to about 44% of gross salary before relief, spread across health, family, basic and complementary pensions, unemployment and workplace accidents, plus at least half of the mutuelle. Since 1 January 2026 a single degressive relief lowers that figure for every salary below three times the minimum wage, and near the minimum wage it removes almost all of it. Here’s the breakdown.
The employer pays health, maternity, disability and death insurance at 13% and family allowances at 5.25% on all pay, basic old-age pension at 8.55% up to the monthly social security ceiling of EUR 4,005 and 2.11% on all pay, and unemployment insurance with the wage guarantee fund at 4.25% up to four times the ceiling.
Complementary pension goes to AGIRC-ARRCO: 6.01% from the employer on pay up to the ceiling and 14.78% on pay between one and eight times it, balancing contributions included. Workplace-accident insurance averages 2.08% in 2026, but the rate is set per establishment from its claims history, so it is a cost the employer can influence.
Employees pay their own share of pension and unemployment contributions, plus CSG and CRDS, which are employee charges, not employer ones.
On 1 January 2026 France merged three measures into one. The reduced health rate of 7% and family rate of 3.45% were abolished, and the Fillon reduction became the single degressive relief, known by its French initials RGDU. It is calculated after the contributions and now applies to every salary below three times the minimum wage, about EUR 65,600 a year, instead of 1.6 times.
One detail matters for 2026 budgets. The minimum wage rose to EUR 12.31 an hour on 1 June 2026, EUR 1,867.02 a month, but a decree keeps the January value of EUR 1,823.03 a month as the reference for the relief all year. Pay rises from June therefore increase the payroll cost without increasing the relief that offsets it.
Income tax is withheld from each payslip. The tax administration sends the employer a personal rate for every employee through the DSN return; where no rate is available, the employer applies the neutral rate from the official scale. The tax withheld is paid over with the social contributions.
The DSN, the monthly nominative social declaration, reports pay, contributions and withholding tax for every employee in one file. It is due by the 5th of the following month for employers with 50 or more employees who pay salaries in the month worked, and by the 15th for everyone else.
A foreign employer with no establishment in France registers with the Centre National des Firmes Étrangères, part of Urssaf, which issues a single SIRET number for its French employees. It then files the DSN like any French employer.
Above three times the minimum wage, where the relief no longer applies, the statutory employer charges are about 44% of gross pay, plus the employer’s share of the mutuelle and, in most urban areas, a mobility levy set by the local transport authority. Below that level the relief brings the cost down gradually, and at the minimum wage almost nothing is left of the employer contributions.
There is no statutory 13th month, although many collective agreements provide one. Health insurance, the mutuelle, is compulsory, with the employer paying at least 50% of the premium. Employees with a year’s service who fall sick receive a top-up from the employer on top of social security benefit: 90% of gross pay for the first 30 days, then two thirds for the next 30, after a seven-day waiting period.
The legal working week is 35 hours. Overtime is paid at a 25% premium for the first eight hours a week and 50% beyond, and managers on a days-based arrangement work at most 218 days a year. Paid leave accrues at 2.5 working days a month: 30 days counted Monday to Saturday, the same five weeks as 25 days counted Monday to Friday.
Statutory notice is one month for six months to two years of service and two months from two years, though collective agreements often set more. Statutory severance is a quarter of a month’s pay per year for the first ten years and a third per year after that, and awards for unfair dismissal are capped by a scale based on service.
French employer contribution rates, 2026
| Contribution | Employer rate | Applies to |
|---|---|---|
| Health, maternity, disability and death | 13% | All gross pay |
| Family allowances | 5.25% | All gross pay |
| Old-age pension, capped | 8.55% | Pay up to EUR 4,005 a month |
| Old-age pension, uncapped | 2.11% | All gross pay |
| AGIRC-ARRCO, bracket 1 | 6.01% | Pay up to EUR 4,005 a month, balancing contribution included |
| AGIRC-ARRCO, bracket 2 | 14.78% | Pay between one and eight times the ceiling |
| Unemployment and wage guarantee fund | 4.25% | Pay up to four times the ceiling |
| Workplace accidents | 2.08% | 2026 national average; set per establishment |
Withholding tax and filing dates, 2026
| Item | Rule | Note |
|---|---|---|
| Withholding tax at source | Personal rate per employee | Sent through the DSN; neutral rate if none |
| DSN, 50 or more employees | By the 5th | Where salaries are paid in the month worked |
| DSN, all other employers | By the 15th | Of the following month |
| Mutuelle | At least 50% employer | Compulsory for all employees |
| Foreign employer without an establishment | Registers with the CNFE | Single SIRET, files the DSN |
Key French payroll thresholds, 2026
| Threshold | Amount | What it drives |
|---|---|---|
| Minimum wage from 1 June 2026 | EUR 12.31 an hour, EUR 1,867.02 a month | Minimum pay for 35 hours a week |
| Minimum wage for the relief | EUR 1,823.03 a month | Frozen at the January value for all of 2026 |
| Social security ceiling | EUR 4,005 a month, EUR 48,060 a year | Caps on pension and unemployment |
| Relief exit point | Three times the minimum wage, about EUR 65,600 a year | Above it, no relief applies |
| Paid leave | 2.5 working days a month | Five weeks a year |
Employer rates only, before the single degressive relief. Employees also pay pension, unemployment, CSG and CRDS. The mobility levy, set by each transport authority, and smaller training, housing and apprenticeship contributions are not shown.
Rates, ceilings and statutory amounts shown are for 2026 and were verified on 21 September 2026. The social security ceiling and relief parameters are reset every January, and the minimum wage can rise during the year. This page is general information, not tax or legal advice.
How our French payroll service works
Why TopSource for French Payroll
TopSource for payroll, Employer of Record or any other of our services represents a simpler, more reliable and transparent option.
We don’t hide fees or sneak price increases. We run French payroll in-house and file under your own registrations rather than a bureau’s, so the same team that files your DSN answers your calls, in English. You get a named account manager, one consolidated monthly invoice covering salaries, contributions, taxes and fees, and one live Portico view of France beside every other country we run for you. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified.
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French payroll FAQs
Statutory employer contributions come to about 44% of gross salary before relief in 2026: 13% health, 5.25% family allowances, basic and AGIRC-ARRCO pensions, 4.25% unemployment and wage guarantee, and workplace-accident insurance averaging 2.08%. The employer also pays at least half of the mutuelle. Salaries below three times the minimum wage receive a relief.
From 1 January 2026 the Fillon reduction and the reduced health and family rates were merged into a single degressive relief. It applies to salaries below three times the minimum wage, about EUR 65,600 a year, and is largest at the minimum wage, where it removes almost all employer contributions.
The minimum wage has been EUR 12.31 an hour since 1 June 2026, EUR 1,867.02 a month for 35 hours a week. For the 2026 relief, however, the January value of EUR 1,823.03 a month stays the reference all year, so the June increase raises costs without raising the relief.
The monthly DSN is due by the 5th of the following month for employers with 50 or more employees who pay salaries in the month worked, and by the 15th for all other employers. Contributions and withholding tax are paid on the same dates.
Employers deduct income tax from each payslip at a personal rate that the tax administration sends for every employee through the DSN. Where no personal rate is available, the employer applies the neutral rate from the official scale. The tax withheld is paid over with the monthly contributions.
Yes. A foreign employer with no establishment in France registers with Urssaf’s Centre National des Firmes Étrangères, receives a single SIRET number and files the DSN like a French employer. A branch or subsidiary registers as a French employer in the usual way. TopSource can run payroll for any of these set-ups.
Yes. Every private-sector employer must offer employees a complementary health insurance plan, the mutuelle, and pay at least 50% of the premium. Collective agreements often set the level of cover and a higher employer share.
Employees accrue 2.5 working days of paid leave for each month worked: 30 days a year counted Monday to Saturday, which equals five weeks or 25 days counted Monday to Friday. Collective agreements can add more.
Statutory notice is one month for employees with six months to two years of service and two months from two years. Collective agreements and contracts often set longer periods, especially for managers.
Yes, after eight months of service. Statutory severance is a quarter of a month’s pay for each of the first ten years and a third of a month for each year after that. Collective agreements can provide more, and unfair dismissal awards follow a statutory scale.
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