A breakdown of the new payslip template as of July 2023.
The French payslip is a very complex document. In 2018, the French government aimed to simplify it by condensing and eliminating some information. Then, in 2022, the presentation of the payslip changed further: with the aim of facilitating the completion of the tax declaration certain data was added such as the annual totals of the taxable net income and the tax paid over the course of the year.
New French Payslip Template in July 2023
Based on a decree dated 31 January 2023, the presentation of the French payslip will be modified further over the next years. Some information will be added, some will be deleted, and some will be restructured.
Mandatory Mention on the Payslip: Social Net Amount
As of 01/07/2023, the French payslip must include a new line: the ‘social net amount’, in French ‘montant net social’.
The social net amount is different from the net to be paid or the taxable net which already appear on the payslip. To simplify, the social net amount is the net income after deduction of all mandatory social contributions; before deduction of the employee’s withholding tax.
It is the amount that is taken into consideration when applying for government benefits such as the activity bonus (in French ‘prime d’activité’) or the minimum income allowance ‘RSA’, for individuals with no or very low incomes.
Currently, this amount is not indicated on the payslip. Meaning, applicants must manually calculate it. This leaves room for misinterpretations and errors. The integration of the social net amount on the French payslip will simplify the procedures for applicants. From 01/07/2023 when applying for social benefits, they can simply refer to their payslip, without having to do any calculations.
Mandatory Declaration of the Social Net Amount via the DSN Declaration
From 2024, employers will have to declare the social net amount to the authorities via the monthly social declaration DSN. This is already the case for many other payroll data such as the ‘taxable net’ that is declared to the tax office and the salary that is declared to the unemployment insurance and the social security for the event of a health-related absence.
With the data being transmitted directly, the application procedure is secured further.
An Updated Payslip Template
The payslip template will be amended. This updated payslip must be implemented no later than 1 January 2025. It is possible to switch to this new template as of 1 July 2023.
The information will be slightly restructured. Some information that has no effect on the rights of employees will be deleted.
The payslip is a complex document that constantly evolves. The new French payslip template applicable in July 2023 will certainly not be the last modification. Your payroll provider in France will keep you updated.