Employee benefits in France

Get the lowdown on employee benefits in France, including healthcare, retirement, and vacation policies.

Quick Overview

Notable:

  • Taxes are relatively high in France, but there are a lot of strong statutory benefits, including heavily subsidised healthcare and a strong pension system
  • Within Europe, France is one of the countries with the highest coverage of collective bargaining agreements (CBA), which means that certain companies and industries have further policy and minimum wage requirements

Statutory Benefits include:

  • Sécurité sociale is divided into supporting five branches:
    • Illness (public healthcare)
    • Old age age/retirement (state pension)
    • Family, work accidents & occupational disease (income protection)
  • This is the primary healthcare system in France, and it’s one of the strongest in the world, covering 70% of individuals’ healthcare costs, and up to 100% in the case of long term medical conditions.

Employers typically provide:

  • Additional Healthcare coverage through Mutuelles 
  • Supplemental income protection coverage
  • Meal Vouchers 

Other common benefits include:

  • Employee Assistance Programs
  • Subsidised gym membership
  • Learning & development budget
  • Health & wellness budget

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Benefits Summary

Benefits coverage standards can differ greatly across countries. The table below shows what statutory, market standard and great coverage look like for each benefit.

Statutory
Market Standard
Great
Other tax advantaged
Learn More
Statutory
  • No statutory requirement
Market Standard
  • Tax exempt commuting expenses of €500/employee/year for sustainable travel to work expenses (public transport, bicycle rental, EV fuel)
  • Meal vouchers are tax advantaged
Great

NA

Health & MedicalTax Advantaged
Learn More
Statutory
  • Sécurité sociale is the primary healthcare system in France. This system covers 70% of individuals’ healthcare costs, and up to 100% in the case of long term medical conditions. 
    • Employer contribution: 13% of employee salary
    • Employee contribution: 7% of their salary 
  • Employers must complement French Social Security with coverage through Mutuelles, for which they must pay a minimum 50% contribution.
Market Standard
  • Many employers chose to fully cover the cost of mutuelles and even family plans (above the 50% requirement) 
  • The market standard coverage includes dependents, but excludes unemployed partners. 
  • Mutuelles provide additional reimbursements for vision & dental. We’ve seen this cost our employers an average of €50 pp/pm (excluding spouse) with about €30 additional per child.
Great
  • Particularly competitive health coverage in France might include an EAP or additional mental wellness program, onsite or subsidised gym facilities, strong mental health services and counselling, healthy food options and discounts and subsidies on wellness products, services and activities. 
  • Health & wellness budget €300 - €1,000 per employee per year
Life Insurance
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Statutory
  • Sécurité sociale supports families in the event of the death or accident of a spouse
  • There is also a mandatory payout of 13% of base income paid out by the employer for disability, critical illness and to survivors of a deceased employee.
Market Standard
  • 80% of employers offer additional support in the form of assurance décès. This covers death.
    • Employee contribution: 1%
    • Employer contribution: 1% (of base salary)
  • Payout range 2x - 3x salary (additional 0.85x per dependant child)
Great
  • Especially competitive life insurance allows employees to flex up coverage to a payout of 4x - 10x salary 
  • Accidental Death & Dismemberment coverage included
Income Protection
Learn More
Statutory
  • Sécurité sociale supports families in the event of the death or accident of a spouse
  • There is also a mandatory payout of 13% of base income for disability, critical illness and to survivors of a deceased employee.
Market Standard
  • 70% of employers offer supplemental coverage for AD&D, long and short-term disability
  • Employee and employer contributions are covered by the life insurance contribution (above)
Great
  • Income protection coverage for accidental death & dismemberment is included in competitive life insurance 
RetirementTax Advantaged
Learn More
Statutory
  • The statutory retirement scheme is strong in France
  • See details in retirement section below
Market Standard
  • The French pension system is very strong, and it is not considered necessary to pay into a private pension
  • 45+% of companies provide a defined contribution (DC) supplemental retirement benefit, for which the employer contributes 70% - 100%
    • Employee contribution: 0-2%
    • Employer contribution: 1.5-4%
  • For employers, there are tax advantages to funding supplementary plans
Great
  • 10+% of employers offer a defined benefit (DB) supplemental retirement benefit. This typically requires 10-15 years seniority and that the employee retire from the company. 
  • Employer pays full cost, but it is tax advantaged.
  • Payout is life annuity at 50-65% of final salary.
  • Possibility of hybrid DC & DB plan.
Childcare
Learn More
Statutory
  • Family allowances provided by the state, per child
Market Standard
  • No standard supplementary childcare 
Great
  • Some larger companies provide on-site daycare
Learning & Development
Learn More
Statutory
  • No statutory requirement
Market Standard
  • Annual learning & development budget of €100 - €500
Great
  • Annual learning & development budget of €500 - €1,000
Socials & mealsTax Advantaged
Learn More
Statutory
  • No statutory requirement
Market Standard
  • 75%+ of companies provide meal allowances or vouchers average of €8.50, and subsidise 50%+ of the meal if in canteens
Great
  • Daily lunch, weekly happy hours. 
  • €50 - €100 / month social budgets every quarter
TransportationTax Advantaged
Learn More
Statutory
  • No statutory requirement
Market Standard
  • Tax exempt commuting expenses of €500/employee/year for sustainable travel to work expenses (public transport, bicycle rental, EV fuel)
Great
  • Commuting expenses paid in full
Statutory
  • No statutory requirement
Market Standard

NA

Great
  • Multinational companies often offer supplemental Business Travel Accident insurance. 
  • Mobile phones often provided to executives
  • Housing allowances are not common
  • 5+% of companies offer loans

Policies Summary

Policy coverage standards can differ greatly across countries. The table below shows what statutory, market standard and great policy coverage look like for each benefit.

Statutory
Market Standard
Great
Holiday
Learn More
Statutory
  • 2.5 days per month of work, which totals 30 days. Plus 11 bank holidays.
Market Standard
  • Statutory is market standard
Great
  • Some companies give vacation days as a reward for years of service
Statutory
  • Daily sick pay is paid by state social security at differing rates and for differing periods of time, dependent on various eligibility criteria.
Market Standard
  • Statutory is market standard
Great
  • France has a higher than average volume of collective bargaining agreements (CBA) by which industries and companies may have additional wage and sick pay/policy requirements.
Maternity
Learn More
Statutory
  • Minimum 16 weeks
Market Standard
  • Leave is typically paid at full salary
  • 30%+% of employers maternity leave above the statutory.
Great
  • CBAs can require additional payments and support from employers of some industries and companies
Paternity
Learn More
Statutory
  • 28 days
Market Standard
  • Leave is typically paid at full salary
  • 30%+ of employers paternity leave above the statutory
Great
  • CBAs can require additional payments and support from employers of some industries and companies
  • To be competitive in the modern workforce, many employers are choosing more equitable maternity/paternity policy
Flexible working
Learn More
Statutory
  • No statutory requirement
Market Standard
  • 90%+ of employers offer flexible working
  • 1 day/week minimum
Great
  • Fully Hybrid/Remote and the option of a “Work from Anywhere” scheme in line with tax-residency requirements 

Benefits

1. Healthcare / Private Medical Insurance

The French government refunds patients 70% of most health care costs, and 100% in case of “ALD” conditions (long term medical problems such as cancer and diabetes).

Every worker is entitled to access an additional, company subsidised plan, These are managed by non-profit mutuelles, and employers must pay at least 50% of the cost of these.  Mutuelles can cover various out-of-pocket expenses, including co-payments, dental care, vision care, prescription medications, and other services not fully reimbursed by the statutory system.

It’s worth noting that mutuelle health insurers are bound by a non-discriminatory code of practice, and they cannot refuse health coverage or charge extra premiums based on health conditions or to perceived high-risk individuals.

Mutuelle costs are dependent on the type of policy you take out and costs vary according to income, age, chosen level of cover, status as employee/self-employed, and living situation. Many employers chose to fully cover the cost of mutuelles and even family plans (above the 50% requirement). The market standard coverage includes dependents, but excludes unemployed partners. We’ve seen this cost our employers an average of €50 pp/pm (excluding spouse) with about €30 additional per child. 

Some popular mutuelle providers include:

  • Alan
  • AXA Santé
  • MGEN (Mutuelle Générale de l'Éducation Nationale)
  • MAAF Santé
  • Harmonie Mutuelle
  • MACIF Santé

Click here to view our catalogue on private medical insurance providers in France.

2. Life Insurance, Income Protection & Disability

Sécurité sociale supports families in the event of the death or accident of a spouse. In the event that an employee can no longer work, they receive a daily allowance. There is also a mandatory payout of 13% of base income for disability, critical illness and to survivors of a deceased employee. However, 80+% of employers offer additional support in the form of assurance décès. And 70+% of employers offer further accidental death and dismemberment (AD&D), long and short-term disability insurance (assurance prévoyance). 

For supplemental coverage, the employee and employer contributions are both typically 1% of employee base salary, and the payout range is 2x - 3x salary, with an additional 0.85x per dependent child. If the employer is including assurance prévoyance, it is included in this contribution. 

While companies are not required unilaterally to take out prévoyance, there are collective agreements by which it is compulsory to offer this type of insurance for employees of a sector of activity or a professional branch.

Employers have the obligation to pay a death in service benefit to executives (Cadres). In addition, a death allowance may be paid by the National Sickness Insurance Fund (CNAMTS)

Leading providers in assurance décès and prévoyance include:

  • Axa France
  • MMA
  • Allianz
  • MACIF

Click here to view our catalogue on insurances in France.

3. Retirement

The retirement scheme in France is complex and in some ways politically contentious. It is also considered one of the strongest in the world, and private pensions are not considered essential in the way they are in the UK and the US, for example (in the UK, state pensions equate just 28% of a person’s salary at the time of retirement, while France boasts an average of 74%). That said, it is very common for employers to offer an additional workplace pension scheme. 

France’s state pension or l’Assurance Retraite is compulsory, meaning that all workers, whether employed or self-employed, must pay contributions to a pension fund. The French pension scheme is made up of two parts, both of which are compulsory and set by the state (i.e. you cannot opt out of either scheme, or choose the type of  complementary regime – it depends upon your profession):

  • Régime de base: basic state pension
  • Régime complémentaire: based on a points system, this is a complementary pension, which varies depending on the type of job you do and your salary

The French pension system is very strong, and it is not considered necessary to pay into a private pension. However, 45+% of companies provide a defined contribution (DC) supplemental retirement benefit, for which the employer contributes 70% - 100%

  • Employee contribution: 0-2%
  • Employer contribution: 1.5-4%

10+% of employers offer a defined benefit (DB) supplemental retirement benefit. This typically requires 10-15 years seniority and that the employee retires from the company. The employer pays full cost, but it is tax advantaged, and payout is life annuity at 50-65% of final salary.

For employers, there are tax advantages to funding supplementary plans

Click here to view our catalogue on insurances in France.

4. Meal Vouchers

Meal vouchers are a popular tax-advantaged benefit in France. There are 3 conditions with which the employer must comply in order to be exempted from tax contributions on the value of the vouchers:

  1. The employer contribution must not exceed the indexed limit. As of May 2023 that limit is €6.91
  2. The employer contribution must be 50% - 60% of the voucher value
  3. An employer can only give one voucher per employee per lunch break within the daily working schedule.

5. Other tax advantaged benefits

  • Assurance vie is a popular tax advantaged savings plan. This financial investment is free from French income and capital gains tax during the investment stage.

Policies

1. Annual Leave

Employees are entitled to 30 days of annual leave (jours ouvrables), accrued at a rate of 2.5 vacation days per month. Vacation days are still accumulated if a worker is on paid leave, leave to compensate for overtime, leave for family reasons, absence from work due to occupational accidents or illnesses, maternity or paternity leave, adoption leave, training leave, and military service periods.

Employment law indicates that employees should not take more than 24 days off at once, but at least 12 consecutive working days must be taken at one time.

If an employee gets sick during the holiday leave, they are not entitled to additional days. (In the UK, these days are “refundable”).

Some companies give additional vacation days to reward years of service.

2. Sick pay

Social Security covers up to 50% of an employee's daily earnings from the fourth day of illness onwards. The employer may be required to contribute, depending on the relevant provisions of the collective bargaining agreement. In some instances, the pay is as high as 90%.

There are requirements an employee must meet in order to be eligible for the first 6 months of sick pay, and another set of requirements in order to be paid for 12 months.

3. Maternity & Paternity

Maternity leave of 16 weeks is covered by social security. This includes up to 6 weeks before birth, and a minimum of 8 weeks after birth

The first 3 days of paternity leave are covered by the employer, and 25 days covered by social security. This is extended to 32 days in the case of multiple births

To be competitive in the modern workforce, many employers are choosing more equitable maternity/paternity policy.

Adoption leave length is dependent on the number of children in the household prior to adoption

Parents are entitled to additional unpaid leave at the end of the maternity and paternity leave, to be taken between 6 months and 3 years after the birth. The unpaid leave lasts for one year but can be extended until the child's third birthday and divided between both parents. The parents may take it simultaneously or alternate.

Employers may not refuse this parental leave if the employee has been with the company for at least one year before the birth of the child.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

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