The French payroll system is distinguished by strict regulations and a detailed structure of pay slips, which serve not only an informative but also an evidentiary function in the relationship between employee and employer. Each payroll slip must contain precisely defined data, while modifications, such as the introduction of a “net social amount,” require employers to be accurate, but also to keep abreast of legislative changes.
Knowing the rules for clearing pay slips in this country is essential for avoiding sanctions, so it is worth exploring this topic and gaining confidence that each element of the salary is calculated correctly. To learn everything you need to know about such a process, we encourage you to read our article today, entirely devoted to this issue.
W tym artykule znajdziemy:
Under French labor law, the employer is required to provide the employee with a pay stub every month, and failure to do so will result in a fine. It is worth noting that as of 2017, electronic form is already preferred, but it is still possible to issue a paper slip at the employee’s request.
Employees should keep their pay stubs for life, as their possible loss may result in difficulties in obtaining a duplicate. The employer has no legal obligation to reissue them after the mandatory five-year archiving period for him.
The introduction, effective July 1, 2023, of an obligation to include the Montant Net Social (MNS) indicator – that is, the net social amount – on pay slips has clarified the requirements for employers. As of January 1, 2024, this data must also be included in the registered social statement (DSN). The net social amount, as the value of wages after deducting all mandatory social security contributions, is of direct relevance to employees claiming social benefits.
Detailed construction of the French wage bar
The French payroll slip is characterized by a multi-element structure, the individual parts of which precisely describe aspects of employment and compensation. Each pay slip is structured according to a specific scheme, which makes it easy to analyze it and check for compliance with labor laws.
Employee data
The essential segment of the payroll slip is the employee data. The pay period (Période), document number (Référence bulletin) and social security number (Numéro sécurité sociale, N˚ S.S.) are indicated here. In addition, there is the classification category (Catégorie/Coefficient), determined by the applicable collective bargaining agreement, the job designation (Emploi), seniority (Ancienneté) and the individual employee number (Matricule). Optionally, the date of commencement of employment (Date d’entrée) may also be indicated. The compilation of personnel data is completed by information on the applicable collective agreement (convention collective).
Employer data
The employer section includes the name of the company along with its legal form (ENTREPRISE), the full address of its registered office (Adresse), postal code and city (CP Ville). The SIRET number, which is the equivalent of the Polish REGON number, allows the company to be identified in business registers, while the NAF/APE code specifies the type of business conducted (equivalent to PKD).
Contributions and deductions
The most elaborate part of the payroll bar is a table giving details of contributions paid. The basis of the calculation is the gross salary. Another part of the list includes health, accident and pension contributions, as well as for unemployment insurance and family benefits. These values are calculated on the basis of the applicable percentage rates and refer to the full salary or part thereof. The document will also include information on fringe benefits, such as compensation for unused vacation (congé payé), employer-funded meals (panier de repas) or housing (avantage logement).
The relevant columns of the table show the number of hours worked (base), the gross hourly rate (Taux) and the final amount to be paid (A payer). Under the latest regulations, the net social amount (MNS) shows the income after deducting all mandatory contributions.
Summary
The last component of the payroll slip shows a summary of all salary components – both for the current month and cumulatively since the beginning of the year. The “Net à payer” amount is the sum that the employer is obliged to transfer to the employee’s account. You can also see information about the total earnings received for the year (Total versé) and the costs incurred by the employer (Ch. Patronales). In addition, this section indicates data on leave: the number of days used, remaining available and the amount of paid annual leave to which the employee is entitled.
What is not allowed to be included in the salary bar?
French regulations also clearly define what information cannot appear on the documentation in question. It is forbidden to mention the employee’s right to strike, in order to protect his freedom to exercise this right without fear of later consequences. If an employee is paid for serving as a crew representative, this must be included in a separate document provided by the employer, as an additional safeguard against possible retaliation or discrimination in the workplace.
Practical aspects of accounting for pay slips
The basis for accounting for pay slips in France is the number of hours actually worked. It is calculated by multiplying the weekly dimension by the number of weeks in a year and then dividing by twelve months. The most important thing is to accurately determine the hourly rates and properly assign them to the number of hours worked. On the payroll bar, this information can be found in the columns “Base” (number of hours), “Taux” (gross hourly rate) and “A payer” (amount to be paid). Depending on the employee’s situation, information about overtime pay, bonuses or benefits in kind may appear in the table.
The value of the net social amount (MNS), which is the salary after deducting all mandatory contributions, must be consistent with the data reported in the registered social declaration (DSN). Inaccuracies in this regard risk denial of social benefits to employees or the need for the employer to submit corrections, which generates additional administrative duties.
Also of particular importance is the correct calculation of social security, health and pension contributions. Their amount depends on the percentage rates in force, and each legislative change forces the updating of personnel and payroll systems.
Inherent in the accounts is also the control of compliance with leave regulations. Incorrect indication of this data can lead to disputes with employees and legal consequences.
Accounting for pay slips with news from July 1, 2023
Through detailed regulations, France seeks to ensure transparency and fairness in payroll, while also holding employers accountable for the proper maintenance of payroll records.
The introduction of changes to the format of French pay slips as of July 1, 2023 was driven by the need to increase clarity and simplify the procedures involved in claiming social benefits. The obligation applies to everyone employed in the French metropolitan territory and in certain overseas territories, excluding regions such as French Polynesia, New Caledonia and the Principality of Monaco.
The legislative amendment was not limited to the introduction of MNS. The French legislature decided that mandatory social security contributions should be clearly separated on the payroll belt from voluntary contributions and other deductions. It was also ordered to systematize the descriptions of benefits, reimbursements and deductions, thus eliminating ambiguities that could lead to misunderstandings or errors in interpretation.
Information deemed unnecessary from the perspective of workers’ rights, the calculation of which was time-consuming and complicated, such as the total amount of reductions in contributions paid by employers, was also removed from the document.
As a result, the correct issuance of a salary slip in France helps ensure compliance with applicable regulations and is of vital importance to both employers and employees.
