Did you know that some of you will receive compensation paid in May 2025?
At the beginning of each year, your annual salary for year N-1 is compared to the annual reference SMH your job class. If there is a difference to your disadvantage, it will be offset by an allowance called an "annual compensation supplement," which will be paid in May N.
How is the employee's annual salary determined?
Your annual salary taken into account in this calculation corresponds to all gross amounts appearing on your pay slip and subject to contributions under social security legislation, excluding certain items.
The following are taken into account:
- Your 12 gross monthly salaries (including the 2 additional hours for non-cadres forfaités),
- The minimum guaranteed annual bonus for F11 to H15 cadres: 8.33% paid on December salary (note: the balance of the bonus paid in April is not taken into account)
- The full variable part for H16 cadres
- The 13th month for non-cadres (paid on June and November salaries)
- Intervention payments (in case of standby)
- Benefits in kind paid in return for or during work
- Any "complément 10è exercice" supplement paid in March N (see our article here)
The following are not taken into account:
- seniority bonuses
- profit-sharing and success-sharing
- standby packages
- bonuses or increases for arduous, dangerous, or unhealthy work
- shift work increases
- exceptional and voluntary bonuses and gratuities
- the balance of the cadre bonus (paid in April) => this new calculation method is more favorable than before since the entire annual cadre bonus was previously taken into account
What does the annual reference SMH correspond to?
The annual reference SMH calculated for each employee corresponds to the sum of the monthly SMHs multiplied by 13 and divided by 12.
The monthly SMH calculated for each employee takes into account the employee's job class, age (launch ramp) and actual working time.
In this respect, the monthly SMH used corresponds to one of the grid increased in the event of overtime or repurchase of JRTT ("forfait jours" employees) ; or reduced in the event of absences (sickness, unpaid leave, etc.) or part-time work.
In the end, the "annual compensation supplement" is paid when your annual salary is lower then the annual reference SMH.
For the year 2024, this is particularly the case for all those who benefited from an adjustment to the monthly minimum wage (SMH) for their job class in July 2024, (because it means that their salary was lower than the SMH from January to June 2024) unless the September 2024 Individual Increase given by your manager made up for the loss you incurred.
Note: in 2024 two SMH grids have to be considered. One from January to August 2024; another one from Setmeber to December 2024.