In France, two out of three people report not understanding their payslip. This statistic is concerning because understanding your payslip is essential to better understand your rights as an employee.
In temporary work, the payslip can seem complex, especially if you're just starting out.
By understanding the elements of your temporary work payslip, you can better assess the structure of your remuneration and how it is calculated.
Staffmatch is here to help you decipher your payslip, which can be broken down into 4 main parts.
Part 1: Identification Information
The first section of your temporary work payslip concerns the identification information of the employer and the employee, as well as the corresponding pay period.
It is located at the top of your payslip and contains mandatory information.
On the left, you will find your employer's information. If you are a temporary worker, this is your ETT (Entreprise de Travail Temporaire - Temporary Employment Agency), such as Staffmatch.
On the right side, you will find your personal information:
✅ Employee's first and last name
✅ HR identification number or employee number within the company
✅ Social security number
✅ Address
🚀 Ensure that this information is correct, as it is essential for any subsequent communication with tax authorities or social security.
☝️Good to know: In a standard payslip, you will also find the position the employee holds within the company.
In a temporary work payslip, this information appears in the section corresponding to the gross salary, depending on the position you held during your temporary assignments.
Part 2: Gross Salary
The gross salary is the total amount earned before any deductions. It is the amount of your gross remuneration before social contributions and taxes are deducted.
However, as a temporary worker, your gross salary may include specific elements such as Paid Holiday Allowance (ICP) and End-of-Mission Bonus (IFM) or overtime hours.
What are the main components of your gross salary?
💸 Basic Salary
The basic salary is the amount you earn for the hours worked on a temporary basis. It is usually based on an hourly rate agreed with the temporary employment agency. This amount forms the main part of your gross salary.
💸 Paid Holiday Allowance (ICP)
ICP is the allowance paid to compensate for untaken paid holidays to which you are entitled.
💸 End-of-Mission Bonus (IFM)
IFM is a bonus paid at the end of each temporary assignment. It is intended to compensate for the precarious nature of temporary employment and is calculated as a percentage of your total gross salary. IFM is paid in addition to your basic salary and ICP.
💸 Compensatory Allowance for Paid Holidays (ICCP)
ICCP corresponds to the number of paid holiday days that the employee has accrued and not taken at the date of termination or end of their employment contract.
Part 3: Social Contributions
When you consult your payslip as a temporary worker, it is important to understand social contributions. These are automatically deducted from your gross salary to finance various aspects of social security and other social benefits.
It is important to note that for social contributions, there is a part borne by the employee and another by the employer.
Understanding these contributions in detail is crucial to know your net remuneration:
💸 Retirement Contributions
Part of your social contributions goes to your retirement scheme. In France, there are different retirement schemes, including the general scheme and supplementary schemes. Retirement contributions are used to finance your future pension. The more you contribute, the higher your retirement pension should be. It is important to note that these contributions are deducted from your pre-tax gross salary, which can reduce your taxable income.
💸 Health Insurance Contributions
Health insurance contributions finance the French healthcare system. They cover medical expenses, medications, and medical care. In case of illness or accident, health insurance covers part or all of the medical costs, depending on your situation.
💸 Unemployment Insurance Contributions
Unemployment insurance contributions finance unemployment benefits in case of job loss. As a temporary worker, you contribute to this system to ensure you receive unemployment benefits. This offers some financial security during transitions between different jobs.
💸 Other Social Contributions
In addition to the contributions mentioned above, there are other social deductions, such as contributions for vocational training, family allowances, and other contributions specific to your situation. These contributions may vary depending on your status and your employer.
☝️Good to know: The higher your social contributions, the greater the deduction from your gross salary will be. However, they are essential to benefit from social security advantages and to ensure your long-term financial security.
Part 4: Net Salary and Withholding Tax
Social contributions have a direct effect on your salary, and once deducted, a final step remains: withholding tax.
On January 1, 2019, and in accordance with Order No. 2017-1390 of September 22, 2017, the reform of income tax withholding at source came into effect.
This means that your employer directly deducts income tax each month from your taxable net salary based on your withholding rate.
☝️Good to know: Your withholding rate may be individualized or non-personalized, and this is the only tax information transmitted to your employer.
After withholding tax, you will find the "net to be paid" section, which corresponds to the amount that will be transferred to your bank account.
📣 Be careful not to confuse taxable net salary and net salary:
The taxable net salary is the amount on which you will pay income tax.
The net salary is the amount you actually receive in your bank account after all mandatory deductions have been made.
The New "Net Social Amount" Section
The decree published in the Official Journal on February 7, 2023, introduced a new section on French payslips: the "net social amount."
Employees can now more easily indicate their resources to declare to the CAF (Caisse d'Allocations Familiales - Family Allowance Fund) and other organizations to benefit from their rights.
🚀 This section indicates the net income after deduction of all mandatory social contributions. This amount is crucial for calculating certain social benefits, such as the RSA (Revenu de Solidarité Active - Active Solidarity Income), the activity bonus, or replacement income.
☝️Good to know: Our temporary workers are paid on the 10th of the month following the assignments. However, this may vary depending on weekends, public holidays, and interbank processing times. To know the exact date of receipt of your salary in your account, a payment calendar is available in the "payslip" tab of your Staffmatch account.
How to Read a Payslip?
To correctly read a payslip, start by checking the identification information at the top of the page. Make sure your name, address, and those of your employer are correct. Then, examine the gross salary to understand how much you earned before deductions. Next, look at the social contributions to see what deductions were made from your gross salary. Finally, consult the net salary to know the exact amount you will receive.
📣 It is important to keep a copy of your payslip, whether in physical or digital form. These are necessary for calculating your retirement pension and for asserting certain social rights, such as unemployment benefits.