# The India Employee Benefits Stack for French companies

> French parents are used to a mandatory, employer-co-funded mutuelle sitting on top of generous public cover. In India the order flips: group health insurance is the base layer, its sum insured is the whole safety net, and parents are the largest claims category. Budget for it as primary cover, and fund gratuity from day one.

By Akshay Golechha, Chief Business Officer at Plum (https://www.linkedin.com/in/akshaygolechha/). Published by Plum (https://www.plumhq.com). Canonical: https://www.plumhq.com/india-benefits-stack/france. Updated 2026-10-05. Part of The India Employee Benefits Stack: https://www.plumhq.com/india-benefits-stack.

## In short

- India has no equivalent of the French mutuelle obligation. Employees above ₹21,000 a month have no statutory health cover, so Group Health Insurance is voluntary in law but primary in practice: it is the base layer, not a top-up.
- French pensions (retraite de base and Agirc-Arrco) map to EPF at 12% + 12% of basic, prévoyance to Group Term Life and Group Personal Accident, and the retirement indemnity to statutory gratuity after five years.
- Since 21 November 2025, if allowances excluded from wages exceed 50% of total remuneration, the excess is added back for EPF and gratuity. A French package built on a modest base and many primes needs checking before it is copied.

## Questions

### Do we have to provide a mutuelle in India?

No. Indian law has no equivalent of the French mutuelle obligation. Employees earning up to ₹21,000 a month sit in ESI, funded at 3.25% by the employer and 0.75% by the employee. Above that line the employer's statutory health obligation is zero, so Group Health Insurance is voluntary. In practice candidates hired at ₹8 LPA and above expect it, and it is their base layer of cover, not a top-up.

### Do French secondees (salariés détachés) have to contribute to EPF?

Not if they hold a certificate of coverage under the India–France social security agreement, in force since 1 July 2011, for detachments of up to 60 months. Without it they are International Workers and must contribute to EPF from day one on full salary, with no ₹15,000 ceiling. The agreement covers pensions only, so arrange health cover separately. Apply for the certificate before the posting starts.

### What replaces prévoyance in India?

Group Term Life (GTL) and Group Personal Accident (GPA). Neither is mandatory, but GTL at 3 to 5 times CTC is common for white-collar staff, and GPA pays on accidental death and disability. The only statutory life cover is EDLI, up to ₹7 lakh through EPFO. Employees outside ESI are also covered by the Employees' Compensation Act 1923, which the employer insures.

### Should our India policy cover parents?

Decide it early, because it is the biggest design choice after the sum insured. Parents are the largest claims category by relationship in India, about 40% of claims in Plum's data. The India median sum insured is ₹5,00,000; global startups in India carry ₹10,00,000. Covering parents raises the premium, so settle whether the employer pays that share or the employee co-pays.

### Can we pay a 13th month in India?

Yes, as a contractual annual bonus written into the offer letter. Employees earning up to ₹21,000 a month are also owed a statutory bonus of 8.33% to 20% under the Payment of Bonus Act. Check the full package against the Labour Codes in force since 21 November 2025: if allowances excluded from wages exceed 50% of total remuneration, the excess is added back for EPF and gratuity.

### How does French paid leave compare with India?

France guarantees five weeks (30 jours ouvrables). In India leave is set by state Shops and Establishments Acts for offices or the Factories Act for factories. Earned leave is typically 12 to 18 days a year, plus casual and sick leave, and public holidays vary by state, with three national holidays. Granting French-style leave in India is a policy choice.

## What changes when you come from France

### Assignees from France and India's EPF

**The rule.** Foreign nationals employed in India are International Workers under EPF. They must join from day one, with contributions on full salary: the ₹15,000 wage ceiling does not apply.
**France and India.** India and France have a social security agreement in force since 1 July 2011. Staff seconded from France for up to 60 months with a certificate of coverage stay in French pension schemes and are exempt from Indian EPF. The agreement covers pensions, not health. Get the certificate before the first Indian payroll run.

### Mapping French benefits to India

**At home.** A mandatory mutuelle funded at least 50% by the employer, prévoyance for cadres funded by the employer at 1.50% of pay up to the Social Security ceiling, Agirc-Arrco pensions, five weeks' paid leave and, under many collective agreements, a 13th month.
**In India.** Group Health Insurance (GHI) as primary cover, with Group Term Life (GTL) and Group Personal Accident (GPA) in place of prévoyance. EPF replaces the pension contributions. Gratuity is statutory: fund it through an insured gratuity scheme rather than carrying it as an unfunded liability.

### Overlap between Paris and India

**Time difference.** India is 3½ hours ahead of Paris during French summer time (late March to late October) and 4½ hours ahead in winter. India has no daylight saving, so the overlap shifts twice a year; Paris mornings meet Indian afternoons.
**What to set up.** Agree who in India signs off endorsements, claims escalations and renewals, so nothing waits for headquarters' business hours.

### India–France tax treaty

**Treaty.** India and France have a double taxation avoidance convention in force since 1 August 1994. Short visits are usually exempt from Indian tax under its 183-day and employer conditions; check the exact article before relying on it. An amending protocol signed in February 2026 adds a service permanent establishment test and was awaiting ratification in October 2026.
**Secondments.** Long secondments can create a permanent establishment for the parent. Structure recharges and employment contracts with a tax advisor before staff move.

## What you call it in France, and what it is called in India

In France the mutuelle tops up the Sécurité sociale, which already pays most of the bill. In India there is nothing to top up. A salaried employee earning more than ₹21,000 a month has no statutory health cover at all, and below that line sits ESI, a government scheme. The employer's Group Health Insurance (GHI) is not a complementary layer: it is the first layer, and often the only one. That single difference explains most of the benefits questions a Paris HR team asks in its first year in India.

| At home in France | In India | What changes for the employer |
| --- | --- | --- |
| Company health insurance (Mutuelle d'entreprise): Mandatory company health plan since 2016. The employer pays at least 50% of the premium; it covers what the Sécurité sociale does not reimburse. | Group Health Insurance (GHI); ESI for employees earning up to ₹21,000 a month | GHI is not a top-up: above the ESI ceiling it is the only health cover the employer provides. It is not legally required, but candidates hired at ₹8 LPA and above expect it. India's median sum insured is ₹5,00,000; global startups in India carry ₹10,00,000. |
| Statutory health insurance (Sécurité sociale (Assurance maladie)): Universal public health insurance, funded largely by an employer contribution of 13% of gross pay. | ESI for employees earning up to ₹21,000 a month gross | ESI costs 3.25% employer and 0.75% employee, and only below the ceiling. Above it the employer's statutory health obligation is zero, which is why GHI carries more weight in India than the mutuelle does in France. |
| Death and disability cover (Prévoyance): Group death, incapacity and disability cover. For cadres, the employer must fund at least 1.50% of pay up to the Social Security ceiling. | Group Term Life (GTL) and Group Personal Accident (GPA); EDLI life cover of up to ₹7 lakh through EPFO | Only EDLI is statutory. GTL and GPA are voluntary, but they are the usual add-ons to group health, and GTL at 3 to 5 times CTC is common for white-collar staff. GPA pays on accidental death and disability. |
| Basic and complementary pensions (Retraite de base et Agirc-Arrco): State pension (employer pays 8.55% up to the Social Security ceiling plus 2.11% on all pay) and the mandatory Agirc-Arrco complementary scheme. | EPF and EPS (Employees' Provident Fund and Pension Scheme) | Applies to establishments with 20+ employees: 12% of basic plus DA from the employer, of which 8.33% goes to EPS, and 12% from the employee. The statutory wage ceiling is ₹15,000 a month; most MNC subsidiaries contribute on full basic. |
| Work-injury insurance (Accidents du travail et maladies professionnelles (AT/MP)): Employer-funded insurance for work accidents and occupational diseases; the rate depends on the company's risk. | Employees' Compensation Act 1923 (or ESI where covered) plus Group Personal Accident (GPA) | The Employees' Compensation Act covers employees who are not in ESI, and the employer insures it. GPA is the usual voluntary add-on for accidental death and disability. |
| Unemployment insurance (Assurance chômage): Employer contribution of 4% of gross pay, collected by Urssaf. | No equivalent for most employees | Nothing to contribute. Exit costs sit in notice pay and statutory gratuity instead. |
| Retirement indemnity (Indemnité de départ à la retraite): Lump sum paid on retirement, set by the Labour Code or a more generous collective agreement, based on length of service. | Gratuity under the Payment of Gratuity Act 1972, now part of the Code on Social Security | Statutory at establishments with 10+ employees: 15 days' last drawn salary per year of service after five continuous years (one year for fixed-term staff), capped at ₹20 lakh. It is owed on resignation or termination too, so provision it from day one. |
| 13th-month bonus (Treizième mois): An extra month's pay, owed only where a collective agreement, the contract or company practice provides it. The Labour Code does not require it. | Statutory bonus under the Payment of Bonus Act (8.33% to 20%) plus any contractual bonus | The statutory bonus applies to employees earning up to ₹21,000 a month. Above that, a year-end payment is contractual, so write it into the offer letter. Check the whole package against the Labour Codes' 50% wage rule before copying a French pay structure. |
| Paid leave (Congés payés): 2.5 working days a month, 30 jours ouvrables (five weeks) a year, under the Labour Code. | Earned leave under the state Shops and Establishments Act (offices) or the Factories Act (factories) | Earned leave is typically 12 to 18 days a year, plus separate casual and sick leave. Public holidays vary by state, with three national holidays. Five weeks everywhere is a group policy choice, not an Indian requirement. |
| Working-time reduction days (RTT (réduction du temps de travail)): Extra days off that offset hours worked above the 35-hour legal week, under a company or branch agreement. | No equivalent | India has no 35-hour week to offset, so there are no RTT days to replicate. If the group grants extra days off worldwide, add them as company leave on top of earned, casual and sick leave. |
| Maternity and paternity leave (Congé maternité et congé paternité): Maternity and paternity leave, paid largely as daily allowances by the Sécurité sociale. | Maternity Benefit Act: 26 weeks of full pay for the first two children, 12 weeks from the third; no statutory paternity leave under central law | In India the employer pays the salary during maternity leave, not a social insurer (ESI covers it for ESI members). A crèche is required at 50+ employees. GHI covers the delivery: about ₹1 lakh for a normal delivery, ₹1.25 lakh for a C-section. |

## What French companies get wrong when they set up in India

1. **Health cover is a top-up; the state pays most of the bill.** Above ₹21,000 a month India has no state layer. Group Health Insurance is voluntary in law but it is the employee's primary cover, so the sum insured is the whole safety net. India's median is ₹5,00,000; global startups in India carry ₹10,00,000.
2. **Group health is mandatory, so local HR will already have it.** Nothing obliges an Indian employer to buy GHI. It has to be placed, with a minimum group size of 7 at most insurers. Candidates hired at ₹8 LPA and above expect it, so a missing policy shows up first in offer negotiations.
3. **Family cover means spouse and children, as in the mutuelle.** In India, parents are the largest claims category by relationship, about 40% of claims in Plum's data. Decide whether parents are covered, and who pays that share of the premium, before the policy is placed.
4. **Prévoyance is compulsory at home, so life cover is statutory here.** Only EDLI is statutory, with life cover of up to ₹7 lakh through EPFO. Group Term Life and Group Personal Accident are voluntary add-ons; GTL at 3 to 5 times CTC is common for white-collar staff.
5. **Our French pay structure, with primes and allowances, will work in India.** Since 21 November 2025, if allowances excluded from 'wages' exceed 50% of total remuneration, the excess is added back for EPF, gratuity and other statutory calculations. A structure with a low base and many allowances understates both.
6. **The retirement indemnity is paid at retirement, so it can wait.** Gratuity is statutory at establishments with 10+ employees: 15 days' last drawn salary per year after five years (one year for fixed-term staff), capped at ₹20 lakh. It is owed on resignation or termination too, so provision it from the first payroll.
7. **Seconded staff (détachés) stay fully covered by French social security.** The India–France agreement keeps détachés in French pension schemes for up to 60 months if they hold a certificate of coverage. It does not cover health. Without the certificate they join EPF from day one on full salary, with no ₹15,000 ceiling.
8. **Five weeks' paid leave is the legal floor everywhere.** Indian leave is set by state Shops and Establishments Acts or the Factories Act: earned leave is typically 12 to 18 days a year, plus casual and sick leave. Matching French leave is a policy choice, not a legal duty.

## France vs India, benefit by benefit

| Benefit | France | India |
| --- | --- | --- |
| Statutory health cover | Universal Sécurité sociale, plus a mandatory company mutuelle since 2016. | ESI for employees earning up to ₹21,000 a month. Nothing above that line. |
| Employer health cost | 13% of gross pay to health insurance (assurance maladie), plus at least 50% of the mutuelle premium. | 3.25% of wages into ESI below the line. Above it, a voluntary GHI premium plus 18% GST. |
| Role of private cover | Complementary: the mutuelle pays what the Sécurité sociale does not reimburse. | Primary: GHI is the base layer for salaried staff, up to its sum insured. |
| Life and disability | Prévoyance; for cadres, employer-funded at 1.50% of pay up to the Social Security ceiling. | EDLI life cover up to ₹7 lakh. GTL (often 3 to 5 times CTC) and GPA are voluntary. |
| Pension | Sécurité sociale pension plus the mandatory Agirc-Arrco complementary scheme. | EPF and EPS at 12% employer plus 12% employee on basic plus DA. |
| Retirement lump sum | Retirement indemnity under the Labour Code or a collective agreement. | Gratuity, statutory after five years: 15 days' last drawn salary per year, capped at ₹20 lakh. |
| Maternity | Maternity leave paid largely through Sécurité sociale daily allowances. | Employer pays 26 weeks of full pay (12 from the third child). No statutory paternity leave under central law. |
| Paid leave | Five weeks (30 jours ouvrables) a year by law. | Earned leave typically 12 to 18 days a year, plus casual and sick leave, set by state law. |
| Working time | 35-hour legal week; RTT days offset longer hours under an agreement. | No RTT concept. Hours and leave follow state Shops and Establishments Acts or the Factories Act. |
| Annual bonus | 13th month where a collective agreement, contract or practice provides it. | Statutory bonus of 8.33% to 20% for employees earning up to ₹21,000 a month; otherwise contractual. |
| Work injury | AT/MP insurance, employer-funded, rate set by the company's risk. | Employees' Compensation Act for employees not in ESI, insured by the employer; GPA as an add-on. |
| Unemployment insurance | Employer pays 4% of gross pay. | No unemployment contribution. Exit costs sit in notice pay and gratuity. |

## What headquarters is used to

France's statutory system pays most of the bill, so at home the employer's job is the mutuelle on top. Headquarters brings that expectation to India, where the statutory layer stops at ₹21,000 a month.

- **95%** of the French population has supplementary private health insurance
- **≥50%** of the mutuelle premium is paid by the employer, the legal minimum
- **80%** of hospital costs are covered by the statutory system
- **85%** of French healthcare spending in 2024 was public, mainly through social insurance

Source: Benefits Beyond Borders 2025, Plum's report on benefits in the economies investing in India (France chapter, citing the Commonwealth Fund, the European Observatory on Health Systems and Policies and BMJ Public Health). https://www.plumhq.com/benefits-beyond-borders

## Staff seconded from France

Seconded staff (salariés détachés) usually keep a French expatriate or international health plan, but an India-admitted GHI is still worth adding: it gives cashless admission at network hospitals without an advance deposit. The India–France agreement keeps détachés in French pension schemes for up to 60 months with a certificate of coverage, which exempts them from EPF. It does not coordinate health cover. French nationals hired locally are International Workers and join EPF from day one on full salary.

## Where French companies set up in India

- **Chennai, Tamil Nadu.** Saint-Gobain, Michelin, Renault and Valeo run plants and engineering centres here. Plant workforces mean ESI for staff earning up to ₹21,000 a month and the Employees' Compensation Act above it.
- **Bengaluru, Karnataka.** Airbus, Safran, Thales and Capgemini engineering and technology centres. Most hires are white-collar, at ₹8 LPA and above, where candidates expect GHI in the offer.
- **Pune, Maharashtra.** Capgemini and Dassault Systèmes technology teams alongside the city's engineering and automotive belt, so one entity can need both plant and office benefit tiers.
- **Mumbai, Maharashtra.** India headquarters of BNP Paribas, Société Générale, Sanofi and L'Oréal. Office leave follows Maharashtra's Shops and Establishments rules.
- **Delhi NCR, Haryana and Uttar Pradesh.** Schneider Electric's and Pernod Ricard's India headquarters in Gurugram, and Thales teams in Noida. Two states' Shops and Establishments rules apply across the region.

French companies with operations in India include Capgemini, Schneider Electric, Saint-Gobain, Michelin, Renault, Airbus, Safran, Thales, Alstom, L'Oréal, Sanofi, Société Générale, BNP Paribas, Valeo.

## Benchmarks: what MNCs and GCCs offer in India

From [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits), Plum's report on 15,312 benefit plans, 5,20,100 claims and 74,543 checkups from Plum's FY26 book.

- **1.6×** MNC and GCC benefits spend per employee in India, against a funded Indian startup (nearly 3× a local Indian business). ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **43%** of MNCs and GCCs in India are Holistic Leaders: deep insurance plus real breadth of healthcare beside it. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **₹7,50,000** median MNC/GCC sum insured, covering parents or in-laws, with ₹1,00,000 maternity cover and no copays or sub-limits. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **~2%** of payroll buys India's top-quartile plan, against roughly 15% in the US, 10–25% across Europe and 8–15% across APAC. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3-coverage))

### India's top-quartile plan against Germany, France and the Netherlands

| | India | Germany, France and the Netherlands |
|---|---|---|
| Benefits budget, share of payroll | ~2–3.5% (2% typical), plus 13% PF and 4.81% gratuity | ~20–25% (10–25% band); German employer health ~7.3% of gross |
| What the employee still pays | Nothing: no deductible, no copay or coinsurance, no room-rent limit, no waiting period | Germany: $12 a hospital day and $12–24 outpatient. France: a $23 daily hospital charge and $9–12 outpatient |
| Who is on the policy | Employee, spouse, up to 4 children, 2 parents or in-laws, LGBTQ+ and live-in partners | Germany: dependants without income at no extra cost. France: the employer pays at least 50% of the mutuelle for the family |

India's top-quartile plan is the only one of the seven that includes parents, and treatments cost 60–90% less than in the US, Europe or Australia. Source: https://www.plumhq.com/standard-of-employee-benefits#s2-3-coverage

## Further reading on plumhq.com

- [How MNCs structure health insurance for Indian subsidiaries](https://www.plumhq.com/blog/mnc-health-insurance-india-subsidiary-structure): Global programmes, local policies and who signs what.
- [Do you need to match headquarters' benefits in India?](https://www.plumhq.com/blog/gcc-match-headquarters-benefit-standards-india): Where to mirror the parent plan, and where India needs its own design.
- [Insurance for expatriate employees in India](https://www.plumhq.com/blog/insurance-coverage-expatriate-employees-gcc-india): Covering seconded staff alongside the local plan.
- [Group insurance vs ESI: a guide for employers](https://www.plumhq.com/blog/group-insurance-vs-esi-employers-guide): Who must be in ESI, and where group health insurance takes over.
- [How to calculate gratuity in India](https://www.plumhq.com/blog/how-to-calculate-gratuity): Formulas, worked examples and a free calculator.
- [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits): Benchmarks from 4,500+ Indian employee health plans.

Sources: Service-Public.fr (Entreprendre), Complémentaire santé d'entreprise: employer share of at least 50%; Service-Public.fr, Congés payés du salarié dans le secteur privé (2.5 days a month, 30 jours ouvrables a year); Urssaf, private-sector contribution rates and Social Security ceiling (€4,005 a month), 2026; Accord national interprofessionnel du 17 novembre 2017 relatif à la prévoyance des cadres (1.50% employer contribution); CLEISS, Accord de sécurité sociale France–Inde (signed 30 September 2008, in force 1 July 2011); India–France Double Taxation Avoidance Convention (in force 1 August 1994) and Amending Protocol signed February 2026, Central Board of Direct Taxes; Benefits Beyond Borders 2025, Plum (France chapter); Code on Social Security 2020 and Code on Wages 2019, in force 21 November 2025.