Work and Wages
Minimum Wage
The wage paid by the employer cannot be less than the national minimum wage (SMIC).The collective agreement applicable to the contract of employment may also specify a minimum wage depending on the employee's classification. Employee participation in the economic development of the nation is assured by fixing the minimum wage each year with effect from 1 January (Article L3231-6). The minimum wage applies to all salaried workers, including those working in both public and private businesses of an industrial or commercial nature. (Article L3231-1).
A reduced minimum wage (SMIC) rate may be applied in specific cases for youth employment and vocational training. Apprentices and young workers on professionalisation contracts may earn less depending on their age and the length of their contract. Under Article D3231‑3, employees under 18 with less than six months of professional experience in the sector may also receive a reduced SMIC. The reduction is 10% for those aged 17 to 18, and 20% for those under 17.
The national minimum wage (SMIC) can be adjusted in two ways: indexing of SMIC to the consumer price index (CPI) so that when the CPI increases by at least 2%, the minimum wage is increased by the same percentage and the setting of a new SMIC by the Government through a decree following the opinion of the National Committee on Collective Agreements. The Committee is made up of four representatives, each from the government, workers and employers’ side.
The criteria for an increase in the minimum wage take into account the needs of workers and their families; the cost of living in the country; the level of wages and income in the country; and the economic situation. Every four years, the labour minister must present an evaluation of the minimum growth wage to the National Commission for Collective Bargaining, Employment and Vocational Training. This evaluation must be based on two main benchmarks: 60% of the median net monthly salary and 50% of the average net monthly salary, both calculated on a full-time equivalent basis for workers.
Compliance with provisions of the Labour Code, including minimum wage provisions, is ensured by the labour inspectors. The labour inspectors may work together with police officers for ensure compliance. A worker may initially report to the staff representative for payment of wages at a lower rate. The staff representative can then decide to forward the complaint to the labour inspector regarding payment of wages at a lower rate than those specified under the minimum wage law or collective agreement.
Specifically, Article R3233-1 stipulates that failure to pay the stipulated minimum wage rate results in the penalty of 1500 euros for each worker who has been paid at a lower rate. The penalty is applied as many times as there have been violations. In cases of repeat offences within one year, the penalties escalate and may include higher fines, criminal prosecution, or other administrative sanctions.
Source: Articles L. 3231-1 to L. 3231-11, L. 3231-12, R. 3231-1 & 2 and D. 3231-2 to D. 3231-16 of the Labour Code; Decree No. 2009-552; Decree No. 2024-951; Decree No. 2024-1065
Regular Pay
In accordance with Article L3241-1 of the Labour Code, an employer is under the obligation to pay the worker his/her wages in cash, by crossed check or by transfer to a bank or postal account. If an employee has worked for less than a month, then remuneration can be paid in cash on the employee's request, but beyond a monthly amount determined by decree, the salary is paid by crossed check or by transfer to a bank or postal account. The wage period is set as a month, and workers are paid wages on a monthly basis. Those employees not receiving wages on a monthly basis are paid at least twice a month, or every sixteen days in intervals. For piecework whose execution lasts longer than a fortnight, the payment dates may be fixed by mutual agreement. However, the employee receives payments every two weeks and is paid in full within fifteen days following the delivery of the item.
El Khomri law allows employers to provide electronic pay slips to the workers (after workers’ consent). However, employees still have the right to ask for paper pay slips. Employers must keep a duplicate of each employee’s payslip, whether in paper or electronic form, for five years. A decree issued in January 2023 updated the payslip format, and since 1 July 2023, all payslips must display the “Montant net social”. They must also adhere to new itemisation rules.
Wages must always be paid in lawful currency, and any deductions, such as for advances, overpayments, supplies provided by the employer, or legal seizure and transfer, must be clearly itemised and justified on the employee’s payslip. Workers have up to three years to challenge unlawful deductions or claim unpaid wages. Employers are not allowed to impose financial penalties as a form of discipline, and salaries cannot be reduced arbitrarily or used as punishment.
Source: Art. L3241-1 to L3245 of Labour Code; Arrêté of 31 Jan 2023; Law No. 2023-1107 transposing the national interprofessional agreement relating to the sharing of value within the company
Regulations on Work and Wages
- Code du travail français, version consolidée du 22 juillet 2017 / French Labour Code, Consolidated Version on 22 July 2017
- Décret n° 2013-1190 du 19 décembre 2013 / Decree No. 2013-1190 of 19 December 2013
