{"id":19931,"date":"2024-01-31T09:00:44","date_gmt":"2024-01-31T08:00:44","guid":{"rendered":"https:\/\/pre.althea-groupe.com\/news\/re-evaluated-smic-collective-bargaining-minimums-what-impact-on-payroll-services"},"modified":"2024-01-31T09:00:44","modified_gmt":"2024-01-31T08:00:44","slug":"re-evaluated-smic-collective-bargaining-minimums-what-impact-on-payroll-services","status":"publish","type":"post","link":"https:\/\/preprod.althea-groupe.com\/en\/news\/re-evaluated-smic-collective-bargaining-minimums-what-impact-on-payroll-services\/","title":{"rendered":"Re-evaluated SMIC & Collective Bargaining Minimums: What Impact on Payroll Services?"},"content":{"rendered":"

As of January 1<\/sup>, 2024<\/strong>, the SMIC (Salaire Minimum Interprofessionnel de Croissance) increased by 1.13%<\/strong>, reaching \u20ac1<\/em>,398.69<\/strong> net per month for an employee working 35 hours<\/strong> per week (151.67 hours per month). This is the 6th<\/sup><\/strong> increase in the minimum wage since early 2022.<\/strong> <\/p>\n

 <\/p>\n

Re-evaluated SMIC: Increases Impacting Payroll Services<\/strong><\/h2>\n

These successive increases have significantly impacted<\/strong> payroll services and the configuration of payroll software, as they influence<\/strong> numerous calculation factors, particularly the legal calculation methods<\/strong> for apprentice or professionalization contract wages, but also the calculation bases for the general reduction in contributions<\/strong> (formerly Fillon), to name just a few examples.<\/p>\n

In parallel, there is another impact<\/strong> of these SMIC increases on employee remuneration methods, linked to the concept of the collective bargaining minimum wage (SMC): indeed, applying the SMIC is one thing, but companies must also apply the minimum wages defined by collective agreements<\/strong>, provided they are naturally members of a collective agreement, which concerns 15.8 million<\/strong> private sector employees in France. In addition, the application of these collective bargaining minimums must be carried out subject to SMIC compliance<\/strong>: with each SMIC increase, it is mandatory for every company to verify<\/strong> whether the lowest classification levels of the collective agreement to which it adheres have not fallen below<\/strong> this amount. If this is the case, the SMIC amount must prevail until an amendment to the collective agreement has re-evaluated<\/strong> the minimums. This systematic comparison should, ideally, be configured as standard in the payroll software; otherwise, it will result in an additional control and manual override burden<\/strong> for payroll managers during each monthly payroll calculation. <\/p>\n

 <\/p>\n

Social Conference: Revision of the Salary Scale for Several Professional Sectors <\/strong><\/h2>\n

On October 16, 2023<\/strong>, during the Social Conference, several measures were announced to compel professional sectors with one or more collective bargaining minimums below the SMIC<\/strong> to revise their salary scales. The Ministry of Labor then counted 60<\/strong> such sectors, about ten of which had salary scales that were \u201cstructurally<\/em>\u201d non-compliant. All sectors in this situation were to be summoned by the Minister \u201cto explain their delay<\/em>,\u201d and, if no \u201csignificant progress<\/em>\u201d was visible by June 1, 2024<\/sup>, the government would be called upon to submit a bill allowing social security contribution exemptions to be calculated<\/strong> not on the basis of the SMIC, but on the basis of sector minimums for those not in compliance, leading to a potentially significant loss<\/strong> in terms of the effect of the RGCS (formerly Fillon) for the companies concerned, as well as a subsequent configuration burden for payroll services. <\/p>\n

A first assessment of these announcements was made at the end of the year: as agreed, a letter was indeed sent by the Minister of Labor Olivier Dussopt to all social partners in the concerned sectors, i.e., 39<\/strong> out of the 171<\/strong> sectors identified as of November 17 (the day the letters were sent), compared to 60<\/strong> on the day of the Social Conference. Some of them (the number of which was not communicated by the Ministry) will be received by the Minister, his Cabinet, or the General Directorate of Labor by the end of January 2024<\/strong>, and they will have to specify the actions they intend to implement to achieve compliance. <\/p>\n

The professional sectors concerned are as follows:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Sector ID (IDCC)<\/strong><\/td>\nSector Name<\/strong><\/td>\nNumber of Employees<\/strong><\/td>\n<\/tr>\n<\/thead>\n
2098<\/td>\nThird-Party Service Providers<\/td>\n179,100<\/td>\n<\/tr>\n
1396<\/td>\nProcessed Food Industry<\/td>\n49,500<\/td>\n<\/tr>\n
1383<\/td>\nHardware (Retail)<\/td>\n22,800<\/td>\n<\/tr>\n
1557<\/td>\nSports Equipment & Leisure (Retail)<\/td>\n70,200<\/td>\n<\/tr>\n
303<\/td>\nCouture Paris Region<\/td>\n8,900<\/td>\n<\/tr>\n
2264<\/td>\nPrivate Hospitalization<\/td>\n281,500<\/td>\n<\/tr>\n
1631<\/td>\nOutdoor Hospitality<\/td>\n13,100<\/td>\n<\/tr>\n
1391<\/td>\nAirport Handling & Cleaning Paris Region<\/td>\n5,700<\/td>\n<\/tr>\n
2089<\/td>\nWood-Based Panels<\/td>\n5,000<\/td>\n<\/tr>\n
2372<\/td>\nDirect Distribution<\/td>\n27,000<\/td>\n<\/tr>\n
1794<\/td>\nSupplementary Retirement Institutions<\/td>\n29,400<\/td>\n<\/tr>\n
2060<\/td>\nCafeterias<\/td>\n12,100<\/td>\n<\/tr>\n
2257<\/td>\nCasinos<\/td>\n14,300<\/td>\n<\/tr>\n
2366<\/td>\nYoung Workers’ Hostels<\/td>\n5,900<\/td>\n<\/tr>\n
44<\/td>\nChemical Industry<\/td>\n225,800<\/td>\n<\/tr>\n
2156<\/td>\nDepartment Stores and Popular Stores<\/td>\n34,300<\/td>\n<\/tr>\n
500<\/td>\nClothing Haberdashery<\/td>\n17,500<\/td>\n<\/tr>\n
1760<\/td>\nGarden Centers & Seed Stores (Wholesale)<\/td>\n19,400<\/td>\n<\/tr>\n
454<\/td>\nSki Lifts<\/td>\n13,400<\/td>\n<\/tr>\n
1411<\/td>\nFurniture Manufacturing<\/td>\n37,500<\/td>\n<\/tr>\n
1285<\/td>\nArtistic and Cultural Enterprises<\/td>\n27,000<\/td>\n<\/tr>\n
2272<\/td>\nSanitation and Industrial Maintenance<\/td>\n13,300<\/td>\n<\/tr>\n
2002<\/td>\nLaundry<\/td>\n33,700<\/td>\n<\/tr>\n
1947<\/td>\nTimber and Derivatives Trade<\/td>\n7,400<\/td>\n<\/tr>\n
1606<\/td>\nDIY<\/td>\n85,000<\/td>\n<\/tr>\n
1486<\/td>\nTechnical Consulting Firms<\/td>\n1,122,700<\/td>\n<\/tr>\n
45<\/td>\nRubber (Industry)<\/td>\n48,200<\/td>\n<\/tr>\n
3236<\/td>\nNautical Industry and Services<\/td>\n14,000<\/td>\n<\/tr>\n
1611<\/td>\nDirect Communication Logistics<\/td>\n7,900<\/td>\n<\/tr>\n
3216<\/td>\nBuilding Materials Trade<\/td>\n75,800<\/td>\n<\/tr>\n
2190<\/td>\nLocal Missions and PAIO<\/td>\n14,000<\/td>\n<\/tr>\n
1492\/3238<\/td>\nPaperboard Production (OEDTAM)<\/td>\n20,200<\/td>\n<\/tr>\n
1495\/3238<\/td>\nPaperboard Processing (OEDTAM)<\/td>\n20,200<\/td>\n<\/tr>\n
759<\/td>\nFuneral Services<\/td>\n24,400<\/td>\n<\/tr>\n
3017<\/td>\nPorts and Handling<\/td>\n15,900<\/td>\n<\/tr>\n
1909<\/td>\nNon-Profit Tourism Organizations<\/td>\n13,800<\/td>\n<\/tr>\n
1413<\/td>\nTemporary Work (Permanent Employees)<\/td>\n44,000<\/td>\n<\/tr>\n
1534<\/td>\nMeat (Wholesale Industry & Trade)<\/td>\n45,600<\/td>\n<\/tr>\n
1710<\/td>\nTravel (Agencies)<\/td>\n28,900<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

(To assess this compliance, only the lowest salary scales are considered, not various bonuses). <\/em><\/p>\n

Furthermore, among the recalcitrant sectors, 11 of them have been summoned to joint parity commissions, in the presence of a representative from the Ministry of Labor as permitted by article L.2261-20 of the Labor Code<\/strong>, which helps to overcome certain blockages or difficulties.<\/p>\n

Measures to Compel Less Compliant Sectors <\/strong><\/h2>\n

Beyond these consultation actions, more coercive measures are clearly being considered by the government for the less compliant sectors:<\/p>\n