Employees Benefits in France

Old-age pensions, elderly solidarity allowances, long-term disability pensions, short-term disability pensions, partner’s pensions, death grants, and workers’ compensation are all mandatory employee benefits in France. In addition to these statutory protections, supplemental employee benefits may include enhanced retirement and death benefits, short- and long-term disability insurance, medical coverage, career termination indemnities, and extended workers’ compensation beyond the legal minimums. Employers also often offer additional perks such as paid time off (PTO) enhancements, parental leave, and profit-sharing schemes to improve work-life balance and retain top talent. These supplemental benefits, while not legally required, are commonly included in collective bargaining agreements (CBAs) or company-specific policies to attract and support employees.

Mandatory Employee Benefits in France

Old-Age Pension

The legal retirement age is 62 years old. The age at which you are automatically entitled to a full pension is 67. The qualifying period for a full pension is determined by the month and year of the insured’s birth. For periods when the insured received unemployment benefits or a disability pension, coverage may be credited (with an assessed degree of disability of greater than 66 percent). Up to eight halves of coverage may be given to insured women for each kid, and four of these halves may be awarded to the father under specific conditions. Persons with disabilities, working mothers, those who work in difficult conditions, people who have had lengthy careers, and war veterans all have particular qualifications.

Allowance for the Elderly in Solidarity

This is paid to low-income retirees over the age of 65, as well as insured persons who have attained the legal retirement age and are deemed unable to work or have a permanent disability of at least 50%.

Pension for People With Long-Term Disabilities

A person must be younger than the regular retirement age, have a 66.7 percent estimated loss of earning capability in any occupation, and have at least twelve months of coverage before the disability occurred, as well as 600 hours of employment in the previous 12 months, to qualify for this pension. This comprises at least 200 hours in the previous three months; or having contributed based on earnings of at least 2,030 times the legal hourly minimum pay, including at least 1,015 times the legal hourly minimum rate.

Pension for Short-Term Disability

To be eligible for short-term sickness benefits, an employee must have worked a specific number of hours or accumulated a certain amount of contributions in the time leading up to the illness. The daily allowance paid during a sick leave equals 50% of the employee’s daily reference salary for the previous three months. It is based on the average gross salary taken into account, with a maximum of € 2,601.68 for the first 30 days of absence, limited to 1.8 times the monthly SMIC in effect (SMIC = Guaranteed Minimum Wage) 1/91,25th. If the employee has three dependent children, the compensation increases to 66.66 percent of the daily reference salary on day 31 of sick leave.

Pension for the Spouse

In France, employee perks include pensions for spouses. A widow(er) over the age of 55 or who is disabled is an eligible survivor (including a divorced wife who has not remarried). Even if they had a civil relationship with the deceased, unmarried surviving partners are ineligible. If the widow(er) is 55 or older and has given birth to or raised three or more children, a child’s supplement is paid.

Grant of death

If the dead were employed or receiving an unemployment benefit, a cash sickness benefit, or a disability pension (with an assessed degree of incapacity of at least 66.67 percent) at the time of death, they will be eligible for this payout.

Medical Coverage

Since 1945, all employees have been eligible for mandated medical care benefits through France’s social welfare system. PUMA also covers employees who have a very low income (Universal Protection for Medical Care).

Compensation for Employees

Company workers compensation in France is divided into two parts:

• Permanent Disability Pension – If given by the CBA, the supplementary pension amount is based on the employee’s Incapacity Rate (decided by the Social Security Referent Practitioner) and wages prior to the accident. The minimal amount is determined by the CBA.

• Survivor’s Benefits – A spouse may be entitled to a supplementary pension if the CBA provides it. The minimal amount is determined by the CBA.

Retirement

The General Scheme and Supplementary Plans are comparable to a career average defined benefit (DB) plan in that they are funded on a pay-as-you-go basis. The annuities payable to retirees in any given year are paid from active employee and employer contributions received during that year.

Indemnities for Job Termination

Employers cover termination indemnities using reserves or insurance. When the National Inter-Professional Agreement (ANI) is in effect, the Employer is required to continue to give benefits after the work contract has terminated.

An employee with at least one year of service is entitled to an indemnity, according to labor legislation. For every year of service, the compensation is 1/5th of a month’s salary, plus an extra 2/15th of a month’s salary for each year of service after 10 years (1 month’s salary after 10 years’ seniority).

According to CBA, benefits vary depending on the type of agreement in place, but in general, benefits are a fraction of the average wage for the previous 12 months, based on the duration of service.