Fraud Blocker Legislative changes for 2023 in France

What are the legislative changes for 2023 in France?

At the beginning of the year, there are different changes in laws and regulations. We have compiled a list of the most significant changes to the French employment law.  As our in-country knowledge partner, we have sorted it out. 

Minimum Salary (SMIC)

The French government has updated the national minimum wage and salary requirements. France’s monthly minimum wage will increase to EUR 1,709.28 or EUR 11.27 per hour.

Revaluation of income tax

Every year, the French income tax will be adjusted to take into account the effects of inflation. The income tax scale will be revalued by 5,4% in 2023. This is due to the increase in consumer prices. This is also included in the ‘Loi de Finances pour 2023’.

Relaxation of withholding tax

The threshold for modulating withholding tax was previously 10%, but as of January 1st, 2023, this threshold will be reduced to 5%. This will make it easier for a taxpayer to reduce his or her rate in case of a loss of income during the year.

RTT days

Every year, the amount of RTT days will change. The RTT days, which are the compensation days for unpaid overtime will turn into 12 days (2022: 14 days). Employees cannot carry RTT days to the following year.

Executive under forfait jour

2023 will be the start of opening the gradual retirement scheme to employees on fixed-term contracts. This scheme allows employees from the age of 60 with at least 150 quarters of pension insurance to receive part of their pension while continuing to work part-time.

Remote Work and Covid-19

Covid-19 positive employees will continue to be able to take sick leave without a waiting period until the end of 2023. If they are unable to work remotely, they will be able to take a “derogatory” sick leave that is compensated by the Health Insurance from the first day and lasts between five to ten days, depending on their vaccination status. This benefit will be in place until December 31, 2023, and replaces the normal three-day waiting period for sick leave.

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