Article
4 min read
Employer Costs for an Employee in France (2026 Guide)
Employer of record
Global hiring
Author
Jemima Owen-Jones
Last Update
February 04, 2026
Quick answer: What is the total employer cost for a $105,000 salary in France?
For an employee earning $105,000 USD annually in France, employers can expect mandatory employer costs of approximately $48,262 USD per year, bringing total compensation costs to $153,262 USD.
Hiring in France can be a great way to access highly skilled talent—whether you’re expanding into Europe, building a remote team, or hiring your ideal candidate locally.
But even when two employees earn the same salary, the total employer cost varies by country due to statutory contributions, healthcare requirements, and mandatory payroll charges.
This guide provides a ballpark estimate of the mandatory employer cost of hiring an employee in France, using an example salary of $105,000 USD per year.
What’s included in this estimate?
This estimate includes mandatory employer-side statutory costs that may apply when hiring an employee in France, such as:
- Workplace accident and occupational illness insurance
- Mandatory employee medical visit fees
- Social security contributions (capped and uncapped)
- Contributions for sickness, maternity, invalidity, and death
- Unemployment insurance contributions
- Family benefits contributions
- Retirement pension contributions
- Housing benefit fund (FNAL) contributions
- Occupational medicine fees
- Other mandatory contributions (apprenticeship tax, training tax, etc.)
- Complementary health benefit (estimated; may depend on onboarding)
- Administrative/payroll tooling fees (where applicable in this estimate)
What’s not included in this estimate?
This estimate generally does not include additional costs such as:
- Paid annual leave (vacation)
- Sick pay beyond statutory/insured coverage
- Employer-provided benefits beyond those listed
- Bonuses, equity, or commissions
- Equipment and onboarding expenses
- Costs that vary by employee category, industry, or collective agreements
- Additional private insurance coverage beyond the estimate
Why employer costs vary in France (and globally)
Employer costs can differ depending on:
- Income thresholds and contribution caps
- Capped vs uncapped social security contribution rules
- Industry-specific requirements and collective agreements
- Whether additional benefits apply at onboarding (e.g., complementary health coverage)
- Changes in regulation year to year
- Currency exchange rate fluctuations (if you pay in a different base currency)
Estimated employer cost breakdown for France
Below is an estimated breakdown of mandatory employer costs for hiring an employee in France earning $105,000 USD/year.
Example salary used in this estimate
- Annual gross salary: $105,000 USD
- Annual gross salary (approx.): €101,922 EUR
Employer mandatory costs (estimated)
| Employer Cost Category | Estimated Annual Cost (EUR) | Estimated Annual Cost (USD) | Notes |
|---|---|---|---|
| Workplace Accidents – Occupational Illnesses | €764 | $787 | Workplace accident/illness insurance |
| Medical Visit Fee | €59 | $61 | Employee medical visits/consultations |
| Mandatory Electronic Safe Fee | €42 | $43 | Fixed monthly cost |
| Software cost | €36 | $37 | Time-tracking software cost |
| Other contributions (apprentice tax, training tax, etc.) | €2,962 | $3,051 | Mandatory employer contributions |
| Medical fee | €600 | $618 | Medical services cost |
| Sickness Maternity Invalidity Death | €13,250 | $13,650 | Social security contribution |
| Unemployment Insurance | €4,281 | $4,410 | Unemployment insurance contribution |
| Family Benefits | €5,351 | $5,512 | Family benefits system contribution |
| Supplementary Incapacity Invalidity Death | €1,218 | $1,255 | Supplementary coverage contribution |
| Social Security Capped | €3,964 | $4,084 | Capped social security portion |
| Housing Benefit FNAL | €46 | $48 | Housing benefit fund contribution |
| Occupational Medicine | €304 | $314 | Occupational medicine services |
| Complementary Health Benefit (estimated) | €775 | $799 | Depends at onboarding |
| Social Security Uncapped | €2,059 | $2,121 | Uncapped social security portion |
| Retirement Pension | €11,136 | $11,472 | Retirement pension contribution |
| Total Estimated Employer Costs | €46,847 | $48,262 | Total mandatory employer cost estimate |
Total compensation cost (salary + mandatory employer costs)
| Total | EUR | USD |
|---|---|---|
| Gross Salary | €101,922 | $105,000 |
| Mandatory Employer Costs | €46,847 | $48,262 |
| Total Compensation Cost | €148,769 | $153,262 |
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FAQs
How much does an employee cost beyond salary in France?
For employers in France, total hiring cost is typically higher than gross salary due to mandatory social contribution requirements (including employer social security, unemployment insurance, and retirement contributions). These employer social costs can add a significant percentage on top of salary, especially for long term hires.
Do employers in France have to provide health insurance?
Yes. Employers in France typically provide health insurance through mandatory complementary health coverage (often called a “mutuelle”), which complements the French Social Security system. The cost can vary depending on the plan and what’s agreed at onboarding.
What paid leave entitlements should employers plan for in France?
France has statutory paid leave entitlements, including paid annual leave and other protected leave types. Employers should budget for paid leave as part of total employment cost, even if it isn’t shown as a separate payroll contribution line item.
How does sick leave work in France?
Sick leave in France is supported through the social security system and may involve employer obligations depending on the employee’s situation and applicable rules. Employers should plan for sick leave costs and coverage requirements as part of workforce planning.
What notice periods apply in France?
Notice periods in France vary depending on the employee’s contract type, seniority, and role. Notice requirements can affect termination timelines and total employment cost planning, so they should be clearly defined in the employment agreement.
What is the minimum wage in France and does it affect employer costs?
France has a statutory minimum wage (SMIC). Employers must ensure salaries meet or exceed the minimum wage under French employment laws, which impacts budgeting—especially for hourly or entry-level roles.
Do collective bargaining agreements affect employer costs in France?
Yes. Collective bargaining agreements (CBAs) can set minimum salary levels, job classifications, and benefits. Depending on the employee’s sector, CBAs may increase total employer cost beyond statutory minimums.
Which employment laws influence employer costs in France?
French employment laws cover payroll contributions, working time rules, protected leave, termination processes, and mandatory benefits. Following employment laws is essential for legal compliance and accurate cost forecasting.
Why are employer social costs high in France?
France has a broad social protection system funded through employer and employee contributions. Employer social contribution costs often include capped and uncapped social security payments, unemployment insurance, and retirement pension funding—making employer costs higher than in many other countries.
How should companies approach long term workforce planning in France?
For long term hiring, companies should plan beyond base salary by budgeting for employer social contributions, paid leave, health insurance, sick leave obligations, and potential CBA requirements. This helps improve workforce planning accuracy and reduces compliance risk.
Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.
