France is a major destination of tourists and expatriates. The beautiful cities, art and rich history serve as a big attraction. The cost of living in France is relatively low but this will depend on where you live in France. Paying rent is relatively more expensive than buying your own house in France.
If you are looking to move to France permanently or to work temporarily, this article can help you assess the cost of living in France based on salaries paid and taxation. It is advisable to also consider the exchange rates for your local currency to euros.
The average salary in France in 2020 is 60,800 euros. There is a range of the lowest salary at 8,200 euros and the highest at about 270, 000 euros. The paid salary varies depending on many factors like the level of education and work experience, the location, career and gender. People working in the public sector in France earn 5% more than those in the private sector.
Some tips of surviving in France with your income include; budget and plan your money well, if you can afford to buy a house, please do because renting can be expensive, don’t spend more than you can afford and ensure that you can access your money from anywhere in France.
It is important to learn about how much salary you will make while in France and the taxation policies. France has a minimum wage which helps to create equality and protect the vulnerable people in society. Also if you are an engineer hoping to work in France, you can learn more about how much salary you will earn in this article.
THE AVERAGE SALARY IN FRANCE
Most salaries in France are paid monthly for 12 months in one year but some employers may pay extra 1or 2-month salaries in one year. The legal working hours per week is 35 hours. While working in France, you can benefit from two and a half leave days per month and 11 annual public holidays.
Work experience is considered the most significant factor in determining the amount of salary paid. Persons with a working experience of above 2 years but less than 5 years can earn about 30% more money than beginners in France. An experience of more than 5 years can attract 35% more earnings.
Persons with different levels of experience earn different salaries in France. A degree holder can earn approximately 23% more than a diploma holder. While a post-graduate employee can earn about 29% more than a person with an undergraduate.
Salaries depend on the career type. The following are the 20 top paying jobs in France;
Job Average salary/ per annum
- Cardiothoracic surgeon 237,000 euros
- Cardiologist. 223,000 euros
- Urologists 202,000 euros
- General surgeon. 189,000 euros
- Chief of psychology 181,000 euros
- Interventional radiologist 174,000 euros
- Neurologist 171,000 euros
- Radiotherapist. 167,000 euros
- Gastroenterologist 161,000 euros
- Hematologist/ oncologists. 159,000 euros
- Forensic pathologist 157,000 euros
- General physician. 147.000 euros
- Dentist. 142,000 euros
- Nutritionist. 137,000 euros
- Clinical director. 134,000 euros
- CEO 129,000 euros
- Chair of board. 124,000 euros
- Bank manager 120,000 euros
- Finance director. 114,000 euros
- Finance president 110,000 euros
There has been a 7% reported gender pay gap with female employees earning an average of 58,000 euros while their male counterparts earn an average of 62,000 euros per year. It is reported that fluent English speaking in some industries like banking and sales can increase the salary earned.
People working in France earn lower salaries than those earned while working in other countries like the USA and this has been attributed to the social charges that are deducted from the salary. These social contributions aid in provision of affordable public education and healthcare and retirement.
Salaries in France also vary depending on the location. People in larger cities earn a higher average salary than those in smaller cities. For instance, the average salary in Paris is about 54,000 euros while that in Lille is 49,600 euros.
It is reported that there is higher job security in France than in other countries. Vulnerable workers in France are protected by the labour law which requires the payment of a minimum wage per hour.
WHAT IS THE MINIMUM WAGE IN FRANCE PER HOUR?
France is among the countries that have a minimum wage and has the 3rd best wage after Luxembourg and Australia but with better rates than the Us, UK and Germany. Minimum wage is the minimum amount of money that a worker can be paid in France for work done in one hour.
This minimum wage is determined by the labour law since 1950 therefore it is illegal for any employer to pay below this amount and can face punishment or fine from the French government. The payroll managers help to check compliance with this law. It was set to avoid exploitation of people who were working in sweatshops and were underpaid.
The minimum wage in France per hour for the year 2020 which took effect on 1st January is 10.15 euros or 11.34 dollars per hour. The legal working hours in France is 35 hours therefore this total minimum wage for the month add up to 1,539.42 euros or 1,720.40 dollars.
This is a 1.2% rise from 2019 where the hourly minimum wage was at 10.03 euros / $ 11.21. This rate is adjusted per year at a growth rate of about 1% every year but the government can change it as many times as it wishes. The rate is adjusted depending according to the cost of living, the level of economic growth and inflation.
This minimum wage is uniform in all of France except in the overseas department of Mayotte whose rate is at 7.66 euros.
WHO IS EXEMPTED FROM RECEIVING THE MINIMUM WAGE?
· Employees who are under 17 years with less than 6 months experience can receive up to 80% of the minimum wage.
· Interns who have worked for 2 consecutive months are supposed to be given an allowance of
· Employees who are 17-18 years but have experience should be paid 90% of the minimum wage
· Apprentices can receive 27-100% of the minimum wage depending on their working experience and age
· Part time workers are not exempted from receiving the minimum wage.
The advantages of having a minimum wage include fair and equal treatment of both part-time and full-time workers. Protecting vulnerable workers from poor pay and it helps them to supplement their other wages.
The French government also has other ways of correcting inequality among its citizens for example by providing affordable public education and healthcare and creating an enabling environment for businesses.
WHAT IS THE AVERAGE SALARY IN FRANCE FOR ENGINEER?
Engineering is a relatively well paying job in France. According to the salary explorer, the average salary in France for engineer is 54,000 euros per year. The lowest paid engineer earns about 29,000 euros while the highest paid engineer earns about 72,000 euros.
The salary that an engineer earns depends on the type of engineer career that he specializes in. For instance, an acoustics engineer can earn an average of 54,000 euros while an Autocad engineer can make an average of 41,000 euros per year.
The salary of an engineer is likely to rise by about 10% per year. Engineers in France are also likely to earn 5% performance bonuses but this varies depending on the employers. About 40% engineers do not receive performance bonuses in France.
Higher education levels and working experience are likely to earn an engineer a higher salary. Male engineers also earn more salaries than female engineers. The average salary of a male engineer is 54,000 euros while that of a female engineer is 52,000 euros.
The salary also varies depending on location and the employer. Engineers earn approximately 10% less average salaries for other occupations.
HOW MUCH INCOME TAX DO YOU PAY IN FRANCE?
The income tax paid in France depends on multiple factors for example, the amount of income that one receives, whether you are single or married, whether you have kids or not and if you do, how many kids, whether you are self-employed. The income tax rate in France is determined by that is an annual budget that is passed by the French parliament.
WHO IS ELIGIBLE TO PAY INCOME TAX?
· Any person whose permanent residence or home is in France even if he/she works abroad but his family permanently resides in France
· Any person who has lived in France for more than 183 days in a calendar year even if they were not consecutive days
· Any person whose main job is in France
· Any person whose most assets are in France
WHAT ARE THE INCOME TAX RATES FOR THE YEAR 2020?
Personal income Tax rate
Up to 10,064 0%
10,065- 25659 11%
25659- 73,369 30%
73,369- 157,806 41%
Above 157,806 45%
The rate is charged depending on the household parts. For example if a couple has total earnings of 50,000 euros, there are 2 parts of 25,000 euros. Therefore the first 10,064 euros will be subjected to 0% tax rate. Then whatever is above 10,064 euros is subjected to the appropriate tax rates.
There are various tax adjustments made on the income tax by the French tax authority include: flat tax, reductions, discounts and the less than 75 euros liability. Non-residents are subjected to 20-30% flat tax and other social charges reductions.
Self-employed persons have simplified taxes unless they own large businesses that can be subjected to normal rates. Exceptions from income taxes include: income from some investments like life insurance, non- French income and few other capital gains.
So, this should answer your question how much income tax do you pay in France. .
About the author: Marta Kovachek is the author of this article. She graduated from the University of Chicago with a master’s degree in Economics. Marta enjoys writing about the current economic situation and loves helping our readers to find their next "destination". From places to live to complex social and economic topics, we always enjoy Marta's work. Please contact us in case of any questions.