What is the average salary in France
INSEE statistics put the average net salary for full-time work at around €2,600 per month. Gross, that is about €3,300-3,400 per month, close to €40,000 a year over twelve payments.
The average is sensitive to the few very high salaries. The median salary, the one earned by the worker right in the middle of the table, is around €2,300 net, and is a more realistic reference for any standard role.
The SMIC and the average: two different references
The French minimum wage (SMIC) is around €1,800 gross per month, about €1,400 net. The average is close to 85% above the minimum, a huge range that is worth understanding before setting a salary.
For entry-level contracts, hospitality, retail or logistics, the SMIC and collective agreement bands are the real reference. For technical or management profiles, the national average falls short and you have to look at the sector.
Differences by sector and city
Paris and the Île-de-France region pay between 25% and 30% more than the rest of the country, especially in technology, finance, consulting and engineering. Lyon, Bordeaux and Nantes sit in the upper-middle range.
The same role can vary by 20-30% depending on the city. If you are going to hire remotely or open the office in a mid-sized city, location is a cost lever as important as the sector.
Gross, net and cost to the company
The employee does not see the gross: between social contributions and personal income tax, net pay is around 75-78% of gross for average salaries. Personal income tax has been withheld at source since 2019, with the prélèvement à la source.
What it really costs the employer is gross plus employer contributions, which in France exceed 40% and can go higher on low salaries if reductions are not applied. A salary of €3,000 gross costs the company around €4,200-4,400 per month.
Using the average to plan the subsidiary
The average salary is useful for budgeting, not for setting payroll: each contract is negotiated within its salary band, and sector collective agreements set minimums by category.
Complete the calculation with Social Security contributions and your French company's local taxes, such as the CFE, to determine the real cost of each position in the business plan.
