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France to make tips paid by card tax free

French President Emmanuel Macron has announced that customer tips in cafés and restaurants will no longer be subject to tax, in an effort to make the industry more attractive to potential employees.

France to make tips paid by card tax free
Photo: RANK PERRY / AFP.

The tax exemption will come into effect “in the coming months”, Macron announced on Monday while visiting the Salon international de la restauration, de l’hôtellerie et de l’alimentation in Lyon.

“The idea is that in a restaurant you can leave a tip with a bank card, rounded up or more, because we’ve seen coming out of the crisis that people are using less and less cash.”

He added that businesses would not need to pay insurance contributions on tips, and employees would not be taxed, thus boosting their spending power.

Macron said the measure was partly a response to complaints from business owners in the hospitality industry that they are unable to find sufficient numbers of staff to fill gaps.

“It’s also what’s going to allow you to attract more people – both young and old – by telling them, you can earn a lot more than the salary and bonuses I’m paying you,” he said.

In June, the President called on job seekers to look towards the restaurant industry, where he said there were 110,000 jobs available which needed filling.

READ ALSO How much should you tip the waiter or waitress in France?

The policy was proposed last week by MP Jean-Noël Barrot from the centrist Modem party. He told Les Echos the measure would make the trade more attractive “at a moment when the restaurant industry is restarting but businesses are running into serious difficulties recruiting, which could restrict the economic recovery”.

Geoffroy Roux de Bézieux, president of employers federation Medef, welcomed the announcement. “With the disappearance of cash, there are fewer and fewer tips,” he told franceinfo earlier this year.

“It’s excellent news, because tips are part of the attractivity of our trade,” Didier Chenet, president of the GNI union representing independent hospitality businesses, told AFP. “But now everyone pays by card or using apps, very often they don’t have any change to add €3 or €5 for the service.”

READ ALSO Terraces to tipping: The etiquette for visiting a French café

Until now, tips paid by card were automatically declared, and therefore taxed, while most waiters do not declare cash tips.

Many visitors to France are surprised to learn that tipping is not considered to be a requirement, since restaurants and cafés already add a 15 percent service charge to the bill, but it is common to leave whatever change is left over when paying by cash.

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WORKING IN FRANCE

How to get a summer job in France

As the summer holidays approach in France, many employers are looking for seasonal workers - so if you're looking for a summer job, here's how to go about it.

How to get a summer job in France

There are thousands of employment offers in France – a simple internet search for jobs d’été came up with numerous jobs boards offering work in France, while the government-backed Centre d’Information et de Documentation pour la Jeunesse (CIDJ) offers advice and information on all aspects of life for young people in France, including finding seasonal work and summer placements.

Sectors including agriculture, hospitality and tourism are always recruiting in the summer, seeking fruit-pickers, holiday camp workers and serving/hotel staff.

But what are the rules for people seeking summer jobs?

READ ALSO Vendange: What you really sign up for when you agree to help with the French wine harvest

Age

Children from the age of 16 (under certain circumstances, the age limit drops to 14) who are legally resident in France can work as long as they have written authorisation from their parents or legal guardians. A model authorisation letter is available here

Those under the age of 18 cannot undertake certain jobs for health and safety reasons.

In the following circumstances, children as young as 14 or 15 can work during school holidays.

  • The holidays must last at least 14 days;
  • The child must work no more than half the days of the holiday – so, if a vacation period is two weeks, they can work for no more than one of those weeks;
  • The child is given ‘light duties’ that offer no risk to their safety, health, or development;
  • From the age of 15 and if the child has completed their troisieme education, a minor can register for an apprenticeship. 

Salary

Salary is usually paid monthly and will have a payslip. For those aged 18 and over, pay will be at least equal to the minimum wage.

 For those aged 14 to 17, who have less than six months’ professional experience, the minimum allowed rate is 80 percent of the minimum wage. For those aged 17 to 18, the rate rises to a minimum of 90 percent of France’s minimum wage.

  • The minimum wage in France is currently €10.85 gross per hour (€1,645.58 gross per month based on a 35-hour week);
  • the employment contract is fixed-term and can take different forms (fixed-term contract, seasonal employment contract, temporary employment contract, etc);
  • Seasonal employees are subject to the same obligations as the other employees of the company and have access to the same benefits (canteens, breaks, etc.).

Under 18s have certain additional protections:

  • between the ages of 14 and 16, during school holidays, employees on any contract cannot work more than 35 hours per week nor more than 7 hours per day;
  • They cannot work at night;
  • Those aged 14 to under 16 working during their school holidays can only be assigned to work which is not likely to harm their safety, their health or development.

Right to work in France

If you’re a French citizen or hold permanent residency in France then you have the right to work, but for foreigners there are extra restrictions.

Anyone who holds the passport of a EU/EEA country or Switzerland, is free to work in France or to travel to France seeking work without needing a visa or work permit.

Most other people will need permission to work in France – even if it’s only for a short period or for casual work such as grape-picking. Depending on your country of origin you may need a visa – everything you need to know about that is here.

In addition to the visa, you may also need a work permit, which is the responsibility of the employer.  To employ anyone in France for less than 90 days, an employer must get a temporary work permit – before the prospective employee applies for a short stay visa. This permit is then sent to the embassy at which the employee is applying for a visa.

If you come from countries including the UK, USA and Canada you can spend up to 90 days in France without a visa – but you may still need a work (convention d’accueil) if you want to work while you are here.

READ ALSO Six official websites to know if you’re planning to work in France

Certain countries have specific ‘seasonal worker’ visas on offer, for certain sectors which allows – for example – Canadians to come to France and work the ski season. 

Cash-in-hand jobs

Certain sectors which have a lot of casual workers – for example seasonal fruit-picking – do have cash-in-hand jobs, known in France as marché noir (black market) or simply travail au black (working on the black, or working illegally). 

This is of course illegal and working this way carries risks – as well as the possibility of losing your job if labour inspectors turn up you are also in a vulnerable position. If your employer suddenly decides not to pay you, or make unexpected deductions from your wages, there is very little you can do about it since you won’t have any kind of work contract. 

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