French Economy Minister Proposes Simplified Payslips to Reduce Business Burden

French Economy Minister Bruno Le Maire has unveiled a new bill aimed at simplifying administrative procedures for small and medium-sized businesses in France. The key measure in the proposed legislation is the simplification of employee payslips, which Le Maire plans to reduce from the current 55 lines to around 15 lines by 2027.

Under the new system, payslips would have two main lines: the total remuneration paid by the employer and the net amount actually received by the employee. The precise details of the streamlined payslip will be defined by decree after discussions with social partners, according to the Economy Ministry.

Le Maire described the existing payslips, which often exceed 55 lines, as "illegible" and said the goal of the simplification is to "simplify the lives of business leaders" while providing "transparency" for employees. The government also expects the measure to generate savings for businesses by reducing administrative complexity.

In addition to the payslip reform, the bill includes several other measures aimed at easing the administrative burden on French businesses. These include decriminalizing certain obligations not respected by business leaders, facilitating access to public markets for small businesses, and reducing procedures such as the elimination of 15 million sick leave declarations and 26 million unemployment insurance certificates sent to authorities each year.

Why this matters: The proposed simplification of French payslips represents a significant effort by the government to reduce red tape and support small and medium-sized businesses. If implemented successfully, the streamlined payslip system could save businesses time and money while providing greater clarity for employees.

While the Economy Ministry has not yet announced a specific implementation date for the new payslip format, Le Maire emphasized the government's commitment to supporting French businesses. Other measures related to social thresholds and labor dispute deadlines are being postponed until the fall for further study within the framework of a new labor law.

Key Takeaways

• French govt proposes simplifying payslips from 55 to 15 lines by 2027.
• Payslips to have 2 main lines: total remuneration and net amount received.
• Measure aims to simplify admin for businesses and provide transparency for employees.
• Bill includes other measures to ease admin burden, like decriminalizing obligations.
• Streamlined payslips could save businesses time and money if implemented successfully.