Understanding SMIC Control

The Salaire Minimum Interprofessionnel de Croissance (SMIC) is the minimum salary defined by law. Global Payroll for France includes a control to check that the salary paid is greater than or equal to the SMIC. If the salary paid is less than the SMIC, the system increases the funding base used for the contributions because this funding base cannot be less than the SMIC.

Global Payroll for France uses the GEN FM CTRL SMIC formula to process different calculations and controls, including the control for the SMIC. If the salary paid is less than the SMIC, this formula generates a warning message. View this message on the Payee Messages page in the core application.

The SMIC is calculated as follows:

SMIC = the number of hours paid × the hourly SMIC value

The control is applied to the segment and the month that the system controls if the sum of the different salaries paid during the month is more than the sum of the segment SMICs.

The SIT FM PAYM HRS situation formula is used to indicate whether the payment of the salary is based on the hours and if the SMIC control can be done.

If the payment is a lump sum and the number of hours cannot be estimated, then you must override the SIT FM PAYM HRS formula with the GP FALSE value, and no SMIC control is applied. By default, the SIT FM PAYM HRS formula is equal to GP TRUE, which means that the control is normally processed.

This control is not checked for a company officer or payees who have the SIT FM MANDATAIRE situation formula equal to TRUE. For the SMIC calculation, the system applies the reduction for specific categories of payees, such as for people under 18 and for specific contracts.

Regarding the modification of the funding base, the system calculates the difference between the SMIC and the salary paid. If the salary paid is less than the SMIC, the system adds the difference to the funding base used for the calculation of the contributions. Moreover, the salary compared to the SMIC is the salary after the reductions for professional expenses because these expenses do not count as contributions to a salary that is less than the SMIC.