French Republic or for short France is a country known for its rich culture, fine cuisine and breathtaking landscapes, is not only a hot tourist spot, but also a place where people from all over the world choose to work and live. Whether you’re considering moving to France or just curious about the country’s economic landscape, this blog will provide you with valuable information about salaries, the cost of living and the tax system in France.
France is located in Western Europe and is known for its diverse regions, from the glamorous streets of Paris to the picturesque countryside of Provence. It is the sixth largest economy in the world with a strong focus on technology, tourism, manufacturing and agriculture. The country boasts a high standard of living, a stable social safety net and a well-developed infrastructure.
Minimum wage
In France, as in many other European countries, there is a minimum wage. The minimum wage in France, known as the minimum interprofessional wage, is indexed annually, usually in January. Minimum wages in France correspond to the principle of ‘equal pay for equal work’, which means prohibiting discrimination on grounds of sex, age or other grounds.
According to the French government, the official minimum wage in France in 2023 is 1,709.28 euros per month before taxes. After the mandatory tax and social deductions, EUR 1,353.07 remains at the disposal of the local official. The cost per hour is 11.27 euros. The annual income of a full-time French specialist may not be less than EUR 20 511 or EUR 15 762 after tax.
The right to receive the minimum wage in France, as mentioned above, is guaranteed to every employee, regardless of nationality, race, sex and other factors. This provision is fixed in the collective agreement. Even if the employment contract provides for a smaller amount, the employer is obliged to pay the difference. The minimum wage in France is revised every year on 1 January. In addition, the government can decide to increase this indicator at any time.
Average salary
The average salary for a language job in France is not regulated at the state level. The optimal amount of remuneration is established in the form of negotiations between the employee and the employer, after which it is fixed in the employment contract. National minimum rates, overtime, various bonuses and allowances have been taken into account.
In addition, the income of the specialist is influenced by education, experience and qualifications. Much depends on the sector of the economy, the profession, the capabilities of the company and the region. For example, a job in Paris will provide a higher salary than in many other cities, about 2,500 euros net. Overall, the average salary in France in 2023 is 3,085 euros per month. After paying taxes and social security contributions, about 2,400 euros remain.
Wages by region
Salaries in France vary by region due to differences in the cost of living, economic activity and demand for certain occupations. Here’s an overview:
Paris: The French capital offers the highest salaries in the country, with professionals in finance, technology and the corporate sector earning significantly more than the national average.
Ile de France (except Paris): This region, which surrounds Paris, also offers competitive salaries, mainly due to its proximity to the capital.
Lyon: Lyon is another major economic centre, especially for industries such as pharmaceuticals and biotechnology, offering competitive wages.
Marseille and South: While the south of France is known for its quality of life and beautiful landscapes, wages here are usually slightly lower compared to Paris and its surroundings.
Rural areas: Wages in rural areas are generally lower than in urban centres, but the cost of living is often more affordable.
Salaries by occupation
Salaries in France can vary greatly depending on your profession. Here are a few examples:
IT and Engineering: Professionals in these fields tend to earn above-average salaries due to the high demand for their skills.
Healthcare: Doctors and nurses are well compensated and benefit from the country’s stable healthcare system.
Teaching: Teachers in France receive competitive salaries and the country places a strong emphasis on education.
Hospitality: Workers in the hospitality and tourism industry may receive lower wages, especially in entry-level positions.
Payroll taxes in France
France has a progressive scale of income tax. That is, the higher the salary, the greater the amount will have to be given to the state. The French joke that in France it is not profitable to be rich, it is better to remain middle class. The minimum amount of annual income that is not subject to tax is 10,777 euros. The remainder is taxed from 11 to 45%. Therefore, the real amount of income tax decreases.
In addition, payroll taxes in France have been reduced due to dependent children, and the law provides for a number of benefits for people on low incomes.
Income tax in France in 2023
Today, the progressive scale of income tax rates looks like this:
Up to EUR 10 777 – 0%.
From 10,777 to 27,479 euros – 11%.
From EUR 27 479 to EUR 78 571 – 30%.
From 78,571 to 168,994 euros – 41%.
More than 168,994 euros – 45%.
In general, due to all types of relief and subsidies, about half of the inhabitants of France do not pay income tax at all, and the rate of 45% applies to less than 1% of citizens.
Cost of living
The cost of living in France also varies depending on your location. Large cities such as Paris and Lyon are more expensive, while rural areas and smaller cities offer a more affordable lifestyle. The main costs include housing, transportation, health, education and groceries. It is essential to make the appropriate budget and take into account your personal circumstances when assessing the cost of living in France.
Conclusion
France offers a diverse range of opportunities and experiences for residents and expats alike. Although salaries and the cost of living vary greatly across regions and occupations, the country’s strong social safety net, quality healthcare and high standard of living make it an attractive destination for many. It is essential to research and plan your finances carefully when considering moving to France, but with the right preparation you can enjoy all that this beautiful country has to offer.