THE MINIMUM WAGE
The minimum wage (S.M.I.C. – guaranteed minimum wage) is the minimum
guaranteed wage for all employees in exchange for an actual hour’s work. The
regulation provides for a compulsory review of this each year with effect from 1
July, depending on economic developments and the economic situation.
Amount of social security charges (before tax):
in France, the rate for various social security contributions to be paid by
employees is approximately 23%.
How are salaries fixed?
Salaries consist of all the amounts in cash and benefits in kind which you
receive in exchange for or on the occasion of the work you carry out.
They are freely fixed by agreement between your employer and you, provided that
your employer complies with certain rules.
Your employer must respect:
- the hourly minimum wage (legal
basis of 35 hours per week);
- the guaranteed minimum wage based on the collective agreement in the
company’s sector of activity;
- the professional classification guaranteed by the collective agreement –
the legally-guaranteed salary applicable for undertakings for a 35-hour
week, if you are paid on the basis of the minimum wage;
- equal pay for men and women;
- the law on overtime;
- any bonuses provided for in collective agreements for night work, Sunday
work and work on public holidays.
Gross salary and net salary:
In discussions with the employer, the questions covered include gross salary,
in other words before deduction of compulsory social contributions (social
security contributions, CSG (supplementary contribution in aid of the
underprivileged) and CRDS (social security repayment contribution) or optional
ones (mutual insurance contributions or life insurance). The net salary is what
you receive after deduction of the social security contributions from the gross
salary.
Deductions:
If you are absent from work and if payment for absence is not set down in any
legal text or collective agreement, your employer may make a deduction from your
salary.
On the other hand, he must pay you for the work carried out, including
overtime.
Pay rises:
Salaries rise when the social partners conclude an agreement, each time the
minimum wage is raised, if this is lower than what is agreed, and when you
engage in individual negotiations with your employer.
The company manager is required to engage in negotiations on pay in the
company each year, on his own initiative or, in the absence of this, at the
request of a representative trade union.
The law prohibits clauses comprising index-linking of the minimum wage and
linking to the general price index in collective agreements and company
agreements (ban on sliding-scale clauses).
For further information, contact:
- the staff representatives in the company;
- a trade union organisation;
- the Departmental Directorate for Labour,
- Employment and Vocational Training (DDTEFP);
the Employment Information Service of the Ministry of Employment: 0 825 347
347 (0.15 euro/minute)
Source: European Union
© European Communities, 1995-2006
Reproduction is authorised.
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