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Guide

A Guide to Running Payroll in France

Global payroll

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France is an attractive market for international expansion, boasting one of the largest economies in the EU, a highly skilled workforce, and a central location that makes it a strategic gateway to European markets.

However, navigating payroll and employment compliance in France can be challenging, particularly for companies unfamiliar with local regulations and procedures. The country's labor laws are among the strictest in Europe, with sector-specific collective agreements, limits on working hours and overtime, and a progressive social contribution system.

As an employer, you must adhere to multiple administrative and legal obligations from the moment you start operations and begin building your teams. Understanding when and how legislation applies is essential to running compliant payroll and avoiding penalties.

Deel Payroll operates in over 130 countries, enabling growing businesses to hire and pay employees compliantly, with centralized control and no added overhead, even as they scale. Our state-of-the-art platform reduces payroll processing time by up to 60% and delivers an estimated 67% ROI in only three years. With in-house experts dedicated to tracking local legislation and employment regulations, Deel ensures your payroll remains accurate, compliant, and future-proof.

In this guide, we draw on our experience supporting businesses in France and across Europe to explain the core requirements and decision points involved in payroll setup and execution.

Scale with confidence, without the hassle, risks, and potential setbacks associated with entering a new market. Download Deel's guide to payroll in France today.

This guide covers:

  • The key labor laws and regulatory bodies that govern French payroll
  • France-specific legal requirements to look out for
  • Registrations and procedures that need to be carried out to start hiring in France
  • Tax, social security, insurance, and pension obligations for employers and employees
  • A step-by-step process for setting up and executing payroll compliantly
  • Options for running payroll in France (in-house vs. outsourcing)

Who is this guide for?

This guide is intended for:

  • Business owners looking to expand into the French market
  • HR professionals seeking to understand local labor laws, compliance requirements, and employee obligations
  • Payroll and finance teams researching the French regulatory landscape and payroll processes
  • Anyone who needs a practical, up-to-date overview of how payroll and employment law work in France

Disclaimer: The payroll insights included in this guide are based on information available at the time of publishing (2025) but are subject to change. Always seek legal advice to confirm the latest regulations and requirements before running payroll.

FAQs

In France, full-time employees are entitled to 25 days of PTO. In addition, 11 public holidays are commonly observed, though May 1 (Labor Day) is the only paid holiday mandated by law.

Employers operating in France are not legally required to use a payroll provider. Those with small or less complex teams may be able to run payroll manually. However, the French payroll system is one of the most intricate in Europe, involving dozens of mandatory contributions, real-time reporting through the Nominative Social Declaration (DSN) system, and strict payslip requirements. As a result, running payroll manually can expose businesses to costly errors, compliance risks, and administrative burdens.

As of July 2025, the minimum wage in France is €1,801.80 gross/month.

Generalized Social Contribution (CSG) is paid by employees, not employers. It's deducted directly from the employees’ gross salary and contributes to various social welfare programs, including health insurance, family benefits, and pensions.