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.
* This article is produced as part of the “Migration, Youth and Internet” project. It is written by Elda Spaho Bleta, volunteer of the local group Oxfam in Nancy, who paid close attention to the information given. The sources of the information are cited, and when personal advice is given, it is the sole responsibility of the editor. If, despite her attention, an error had slipped into the document, please report it to her by writing to [email protected] This article is published with the funds of the French Development Agency, Grand Est Solidarités et Coopérations pour le Développement (GESCOD), and with the support of Oxfam France. The content of the articles does not engage the structures previously named.