In this article, we will summarise some of the most popular employee benefits offered by French companies. While not all of these benefits are mandatory, they are common in businesses that want to gain a competitive edge, particularly when it comes to hiring and retaining talented staff.
Pension (l’assurance retraite)
Companies in France and the UK must offer an employee pension scheme. However, it is important to note that while UK employees can opt out, French employees cannot.
In addition to the basic social security pension (régime de base), employers must also provide a mandatory complementary pension (régime complémentaire). Both employers and employees contribute to the complementary pension via salary-proportioned payroll taxes.
There is a third option for employees to pay into a voluntary private pension, with or without employer contributions. Some French employers do offer employer-paid private pension schemes, although these are usually reserved for high-level executives.
Profit-sharing scheme (participation)
Under France’s value-sharing law, participation is mandatory in companies with more than 50 employees. It may also be adopted in companies with 11-49 employees, as they are now required to implement at least one value-sharing option under certain financial conditions.
As participation payments are dependent on the company’s profits, they are not guaranteed. Employers may set out specific participation criteria (such as minimum length of service and payment calculation formulae) in a collective agreement, or be governed by the statutory rules set out in the French Labour Code.
Unless employees opt for immediate full or part payment of their profit share, they must wait five years to access the money, except in specific circumstances such as a major life event or termination of employment.
Employee bonus or savings scheme (intéressement)
Like participation, intéressement is a value-sharing option that allows employees to save their payments in a dedicated company savings plan or receive a bonus. Payments are based on the collective performance of the company.
Intéressement is provided for by the French Labour Code, but is not mandatory. Conditions must be clearly set out in a company agreement or DUE (décision unilatérale de l’employeur, or unilateral employer decision).
Reimbursement of commuting costs (remboursement des frais de transport domicile-travail)
French employers are legally obliged to meet part of the cost of public transport taken by full and part-time employees between their home and place of work. Eligible forms of public transport include bus, train, metro, tram, and public bicycle hire.
The employer must usually reimburse 50% of the cost of second-class travel via the shortest route, paid monthly in arrears. One-off tickets do not qualify for reimbursement, only annual, monthly, or weekly season tickets.
It is perhaps worth noting that employers are not required to reimburse any costs, including fuel, for employees who drive to and from their place of work.
Meal vouchers (titres-restaurant)
Unlike in the UK and other countries, French employees are not permitted to eat on working premises. Instead, employers must provide a dedicated room for consuming food. Under the French Labour Code, companies with 25 or more employees are obliged to offer a catering space that includes facilities for storing, refrigerating and reheating food.
Meal vouchers were introduced to compensate employees for a lack of company catering facilities (though some employers may prefer to offer a lunch allowance). They are issued by an approved provider, in the form of paper vouchers, prepaid cards, or through a mobile app. The vouchers are accepted in eligible restaurants, supermarkets, bakeries, and other food retailers.
The employer is free to determine the value of the meal vouchers offered, although they must pay 50-60% of their value. The rest is paid by the employee via payroll deductions.
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