An insight into the CBA real estate: mandatory bonus payments
Collective bargaining agreements do not only stipulate minimum salaries. They often also provide for mandatory bonus payments. These can have different natures.
CBA real estate: 3 types of mandatory bonuses
For instance, the French collective bargaining agreement for real estate agents and property managers (‘Convention collective nationale de l’immobilier, administrateurs de biens, sociétés immobilières, agents immobiliers, etc.’ ) provides for three mandatory bonus payments: a seniority bonus, a 13th month salary as well as a job anniversary bonus.
Seniority bonus for real estate agents and property managers
Seniority bonuses are the most common mandatory bonus payments in France provided for by collective bargaining agreement. Among the CBAs providing for a seniority bonus are the CBA for advertising agencies and the CBA real estate.
The CBA for real estate agents and property managers provides for a seniority bonus of € 30 per month. It is paid for the first time in January, once the employee has three years of seniority.
The amount increases every three years.
13th month salary based on the CBA real estate
Less common is a mandatory 13th month salary. Among the CBAs stipulating a mandatory 13th month salary are the CBA notaries and the CBA for real estate agents and property managers.
According to the CBA real estate, it is calculated based on the December salary, taking into account the basic salary and the seniority bonus. A prorata is calculated for new starters and leavers.
Job anniversary bonus
The CBA real estate stipulates a job anniversary bonus for employees obtaining a ‘labor medal of honor’. Employees with a minimum of 20 years of service can apply for this medal. A job anniversary bonus of one month’s salary will be paid upon remittance of the medal.
Example: bonus payments in the real estate sector
Let’s take an example:
Cadre-Level staff with 8 years of seniority
Job classification C3, corresponding to a minimum monthly salary of € 3097.31 for 35 hours per week
|Basic Salary||151,67||€ 20,42||€ 3097,31|
|Seniority Bonus||€ 60,00|
|13th month salary||€ 3157,31|
When hiring an employee in France, you should be familiar with mandatory bonus payments of your industry. Especially, the 13th month salary will have a significant impact on your budget. Your French payroll provider will advise on mandatory bonuses of the CBA real estate and particularities of other collective bargaining agreements.