- January 24, 2019
- Posted by: Editorial
- Category: Hiring staff
Hiring employees in French companies
As of 2018, the monthly minimum wage in France is 1 498.50 €. However, France is also known for its relatively high taxes and social contributions, so how much would it actually cost to hire an employee in France?
The first thing to note is that the monthly minimum wage we gave earlier is the gross minimum wage. In other words, this is how much money you have to pay after quite a few taxes have already been paid. Here, your employee would only receive 1 188€.
Unfortunately, employer costs still have to be paid, and these have a rate of roughly 42% of the gross salary. But on salaries less than 1.6 times the minimum wage, there’s an additional reduction of over 28% of the gross salary.
So after all of this, where does this leave us?
To hire an employee at the minimum wage in France, you’d have to pay 1 714€ a month, or 20 568€ a year. In dollars, that translates to a bit less than 24 000 $!
If you want more details on how exactly employer costs are calculated, here’s how exactly to calculate employer’s costs.