Taxes paid when you are hired?

One of the reasons why French employers hesitate to hire foreigners, in addition to the additional administrative procedures as we have explained here, is the payment of a special tax. In short, to be hired in France, an employer must pay an additional and significant tax, which can go up to hundreds or even thousands of euros. This tax has nothing to do with you, the employee, so it is not deducted from your salary. It is an obligation only for the employer. Note that the foreign employee must pay taxes on income received in France, like any other resident working in this country of the European Union.

How is the amount of this tax calculated and in which case is it paid?

First of all, the duration of the employment contract is taken into account (which, in any case, must be greater than 3 months). For example, in the case of contracts of more than 12 months, the tax can go up to more than 2 thousand euros.

 Second, the tax depends on the salary itself: the higher the salary, the higher the tax. More precisely, the higher your salary is compared to the gross minimum one, the higher the tax. The minimum wage in France is called shortly SMIC (Salaire Minimum Interprofessionnel de Croissance) and is simply pronounced SMIK. Whatever the nature of your contract, the employer cannot pay you less than it. Its amount? The gross minimum wage per hour rose to € 10.15, on January 1, 2020 (compared to € 10.03 previously). It is therefore 1,539.42 € gross per month (or 1,219 € in cash), for 35 hours of work per week in France.

For job contracts of 3 to 12 months:

The employer who recruits a foreign worker for a period longer than 3 months and less than 12 months, must pay a tax to the French Office for Immigration and Integration (OFII).

The amount of this tax varies according to the salary paidhttps://www.service-public.fr, November 2020):

• 74 € for a salary that is less than or equal to the minimum wage;
• 210 € for a salary greater than the minimum wage and less than or equal to one and a half times the minimum wage;
• € 300 when the salary is greater than one and a half times the minimum wage;
• 72 € if the recruitment is carried out within the framework of a bilateral agreement for the exchange of young professionals.

For employment contracts of more than 12 months:

The tax is significantly higher for contracts longer than 12 months. In this case, employers must pay the OFFI a tax equal to 55% of a gross monthly salary, within the limit of 2.5 minimum wages (€ 3,848.54). In figures, for salaries below € 3,848.54, the tax is 55% of the average gross salary. For salaries equal to or greater than € 3,848.54, the tax is € 2,116.70.

Precisely, the highest tax that the employer can pay in this case is 1539.42 x 2.5 x 55% =

2,116.70 euros. If your gross monthly salary is less than 3,848.54 euros, the tax your employer will pay, will be less.

 When must the tax be paid?

The employer must pay the tax within 3 months of issuance of:

• the documents required when the worker first enters France;

• the work permit from the first admission to stay as an employee.

* Cet article est produit dans le cadre du projet « Migration, jeunesse et internet ». Il a été rédigé par Elda Spaho Bleta, bénévole au sein du groupe local Oxfam de Nancy, qui a porté la plus grande attention aux informations données. Les sources des informations sont citées, et lorsqu’un avis personnel est donné, il n’engage que la rédactrice. Si malgré son attention, une erreur s’était glissée dans le document, n’hésitez pas à le lui signaler en écrivant à [email protected]. Cet article est publié avec l’appui des fonds de l’Agence française du Développement et du Grand Est Solidarités et Coopérations pour le Développement et avec le soutien d’Oxfam France. Le contenu des articles n’engage pas les structures précédemment nommées.