A wages is an amount of money paid by a Employeur with a Salarié , in exchange of a work provided by the employee. The amount of the versed wages depends on the Work contract, successive pay rises and the regulation: the Labor regulation.

The principle of the wages is to be regularly versed throughout the duration of the contract. Its payment can be carried out per week, quarter or, in the most widespread case in France, per month. One speaks then about monthly salary . The annual salary is used to measure in a more exact way the Revenus of activity of the workers, on a Calendar year: in addition to the twelve months of wages, if a period ago of Chômage, the premiums and possible “the thirteenth month are included”.

Always in the idea to compare, and to evaluate the incomes, the hourly salary (or rate-schedule ) is used to compare to remunerations with the task employees from which the Working time differ, for example those which work “full-time” and those which work with Part time.

Wage-earning and remuneration of labor

Wage-earning is only one form among others of remunerated work, although it became dominating since the industrial revolution.

The other remunerations of labor are:

  • fees for the liberal professions;
  • benefit for the other free lances;
  • Treatment S for the civils servant (working for the State, the territorial collectivities or the public hospitals);
  • allowances for the elected officials.
  • possibly participation in the profits, exercise of stock options, etc

Components of the wages

The wages can comprise

  • a fixed part (basic salary), related to the function, generally referring to the starting contract and/or a classification of the post and generally periodically adjusted, in particular by indexing.
  • a variable part: premiums related to the performances, by report/ratio in particular with the objective individual or collective fixed by the employer or negotiated between the parts. It quasi systematically relates to the trades related to the Vente. This part with tendency to also develop in other functions.

Gross salary and net salary

See also: National insurance contributions

Real net salary

The real net salary measures the Purchasing power effective of the nominal net salary (that indicated on the card of wages).

One measures it by dividing the money wage by the price level: salaire~reel = \ frac {salaire~nominal} {indice~des~prix}

The evolution of the real net salary thus depends on the nominal wage increase and of the rise of the prices

  • If the rise of the prices is identical to the nominal wage increase, the purchasing power stagnates,
  • if the rise of the money wage is higher than that of the prices, the real wages increases.

Minimum wage

See also: Minimum wage

Wages in France

The SMIC

See also: Guaranteed minimum wage

In France, approximately 15% of the employees are paid with the Minimum wage, SMIC, which constitutes a proportion record compared to the other countries. The level of the French minimum wage is fixed by the government, a contrario of other European countries like Germany (fixed by the professional branches) or the United Kingdom (); the government can face electoral constraints. The level of the SMIC is considered to be “too high”, and it would generate unemployment, according to OECD.

Gross salary and net salary

See also: National insurance contributions

Under certain legislations, as in France, part of the wages is touched directly by the employee, another part is devoted to the systems of solidarity, which are primarily the saving reprocesses, the insurance unemployment and the health insurance. In more detailed way, there exist also contributions maternity, widowhood, precaution (long diseases), industrial accidents… ; in short, all kinds of contributions intended to feed from the cases (public corporations, deprived, or mixed) which is given the responsability to redistribute the allowances according to the needs for the workers concerned with an accident, a maternity, the retirement age, etc In France, the Assedic is a case of insurance unemployment.

The gross salary is the wages before subtraction of these taxes. The net salary is the wages after subtraction. One calls also wages differed the unit from these national insurance contributions. One calls also retained these contributions.

Improperly, one calls these taking away “loads”: this expression is not a countable term. It comes from a reduced vision of the wages which consist in observing that the gross salary like is punctured, from where the idea of loads. The use of such an expression seems to want to give an objective and to render comprehensible: “reduction of the loads”.

Actually, the national insurance contributions distributed between the employer and the employee are the base of the system of national solidarity, in particular in France, as indicated above.

These contributions are divided into employers' shares and wage shares. The wage contributions are retained on the gross salary, and the amount of the employer contributions comes in addition to the gross salary, proportionally with the wages. In the beginning, in France, in 1945, these contributions were called “social”, and were intended to feed the cases of the Social security.

Usual national insurance contributions:

  • Insurance unemployment

  • Family benefits
  • Health insurance, maternity, disability, death
  • Industrial accidents
  • Old-age insurance
  • Insurance widowhood
  • APEC (for the executives)
  • CSG (Generalized Social contribution)
  • CRDS (Contribution for the Refunding of the Social Debt)
  • FNAL (assistance with housing)
  • Supplementary pension
  • Tax of training and professional training

The net salary is generally lower by 20 to 30% compared to the gross salary.

Wages charged

One speaks about wages charged to define the wage total costs of an employee for his company. To the gross salary are thus added the employers' taxes and national insurance contributions catches of load by the employer.

Voluntary national insurance contributions

Certain national insurance contributions obligatory and are fixed by the State, the social welfare or the collective agreements. Sometimes to these obligatory national insurance contributions come to be added voluntary national insurance contributions given by the employer or agreements. These voluntary loads can be charged to the wage and/or employers' share. One can quote for example:
  • employers' participation in a mutual insurance company complementary beyond the legal requirement or conventional,
  • advantages in kind,
  • salary savings and Additional amount S on this saving,
It is thus advisable according to the cases to check, when one speaks about charged wages, if this one includes/understands or not voluntary national insurance contributions.

Extra-wage incomes

Sometimes to be completely exact, it is advisable to add to the wages the of income induced by the work contract and to the load of the employer. One can quote as example:
  • exemptions from payment or reduced prices on products of the company
  • social works of the work's council
  • employers' participation in the restoration

Marxist theory of the wages

According to Karl Marx, “ It is the wage-earning which is the currently existing middle-class organization work. Without him, not of capital, not of middle-class, not of middle-class company ”. The purpose of the Communisme is to remove the capitalist system which is based on the profit and the Salariat, considered as being the base of the exploitation and the alienation of the Prolétariat. To note however that the countries stating to take as a starting point its doctrines have in fact strongly developed wage-earning.

To remunerate the work leads to subordinate it to the laws of the trade (Job market).

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