Celergo would like to make you aware of a regulatory change in France concerning the format of the French pay slip. This format change will be effective as of January 2018. If you are running a France payroll, this will affect you.
As you may be aware, the French pay slip is considered a legal document in France and has a regulated standardized format. Effective January 1 2018, all companies (regardless of headcount) must produce and provide their employees with a new payslip format called the “Clarified Pay Slip.” In 2017 this regulation was only applicable to companies with headcount over 300; however, this law is now applied to all companies. The legal texts can be found in the decree n° 2016-190 as of February 25, 2016 and executive decision February 25, 2016.
The goal of this regulation is to provide a more comprehensible and readable presentation of the French pay slip. The majority of the modification concerns the presentation of the social contributions. The social contributions will be gathered by risk type: sickness, work accident, retirement, unemployment, and insurance. Please refer to a sample of the new format below:
Your local payroll provider in France should have implemented the needed measures in their payroll software to be compliant with the regulation by this quickly approaching deadline. We recommend that you contact your local provider in France to ensure that they are implementing the needed measures to update to a “Clarified Pay Slip” format as of January 2018. Lastly and most importantly, you will need to communicate this change out to your employees.
As an employer in France, you have an obligation to communicate this change to your employees. Your payroll provider may be able to assist you in communicating this change to your employees. The goal is to provide the employee with a thorough explanation of the change. Offering two pay slips (one current and one new) in order to understand the difference in presentation between the two formats would be ideal.
We would like to say thank you to the experts at Primexis for their contributions to this article.
**This article is for informational purposes only. It is not intended to constitute legal advice.