Getting compensated in multiple installments within a single month is, in fact, possible. This payment arrangement allows the recipient to receive funds at different points in the month instead of one lump sum.
Dreaming of multiple paychecks in a single month? That's exactly what a majority of French workers crave, according to a survey reported in Le Parisien. A whopping 63% of employees yearn for a change in rules to accommodate this desire, finding solace in smaller, more frequent payouts rather than the current monthly grind.
But as enticing as this idea may sound, the road to implementing such a system is riddled with challenges. Companies would need to invest in additional management software, controls, and overcome management difficulties, as warned by Bernard Cohen-Hadad, the president of the Confederation of Small and Medium Enterprises (CPME) Paris Ile-de-France. He believes such a system could help employees better manage their finances, but only if it's profitable and practical for businesses.
Banks may play a role in offering more overdraft authorizations, providing a bit more flexibility for both collaborators and small entrepreneurs currently grappling with rigid systems. But the question remains: is France ready for a shift away from the traditional monthly payroll cycle?
Let's take a closer look at the current salary payment practices in France:
- Mandatory Monthly Payments: Under French labor law, salary payments are overwhelmingly monthly, with further details refined by collective agreements or employment contracts.
- No Imminent Changes: The minimum wage in France remains at €1,801.80/month gross, with no changes planned for 2025. The median income is expected to reach €3,656/month by late 2025.
- Benefits: Monthly payments provide predictability, legal protections, and tax efficiency.
- Challenges: For employees, cash flow constraints and overtime complexity may arise. For employers, rising minimum wage benchmarks and administrative burden pose significant challenges.
Countries like Belgium already employ a 14-payment system (12 monthly + 2 annual bonuses), but France prioritizes standardization over flexibility. As economic circumstances evolve, the French payment structure may seek to strike a balance between employee protection and operational efficiency. Will 2025 bring change? Only time will tell.
- Bernard Cohen-Hadad, the president of the Confederation of Small and Medium Enterprises (CPME) Paris Ile-de-France, has suggested that more frequent payouts could help employees manage their personal-finance better, but only if it's profitable and practical for businesses.
- Companies planning to implement a more frequent payout system, as advocated by a majority of French workers, would need to invest in additional finance-related infrastructure like management software, controls, and overcome potential management difficulties.
- Banks might step in to offer more overdraft authorizations, providing a bit more flexibility for employees and small entrepreneurs managing within a traditional monthly payroll cycle.
- While some countries like Belgium already use a 14-payment system (12 monthly + 2 annual bonuses), France maintains standardization over flexibility in their current salary payment practices, which provides predictability, legal protections, and tax efficiency. However, as economic circumstances evolve, France may seek to find a balance between employee protection and operational efficiency, potentially leading to a shift in payment structures.
