But although the concept is developing in France, it is still far from being generalized. What does the law say today? Who can benefit from the system? Will demand continue to grow? And could daily or weekly payment for hours worked one day become the norm, as in certain American companies? We take stock.
What are down payment and salary advance?
The salary advance is a partial advance granted by an employer to an employee before the usual payment date. This system allows the employee to receive a fraction of their salary, often proportional to the number of days already worked in the month. The salary advance responds to the same principle, but for days not yet worked.
Thus, a deposit concerns remuneration already acquired by the employee for work carried out, while an advance corresponds to remuneration which has not yet been earned.
There are several reasons why an employee may request a deposit or salary advance. Typically, this involves dealing with unexpected expenses, such as medical bills or emergency repairs. The system makes it possible to release funds that the employee was to receive a little later, without having to resort to short-term credit.
How are deposits and salary advances regulated in France?
In France, the deposit and the salary advance are two distinct systems, governed by the Labor Code.
The salary deposit is defined by article L3242-1 of the Labor Code. This article specifies that any employee (CDD or CDI) has the right to request a deposit of at least half of their monthly salary, for the days already worked during the first half of the month. In other words, he can claim half of his salary due from the 15th of the month.
This system is subject to several conditions: the deposit only concerns days worked, it is limited to one per month and the employee must explicitly request it. For his part, the employer is obliged to pay this deposit if the employee requests it, otherwise he commits an infringement of labor law.
Salary advanceit does not have specific supervision in the Labor Code. However, it is governed by the general principles of contract law.
This system is also subject to several conditions: the advance is granted for a sum corresponding to one or more future salary installments, the employer and the employee must agree in writing on the amount and the conditions of reimbursement , and the amount due is reimbursed gradually, by deductions from the employee’s future salaries.
There is no obligation on the employer to grant a salary advance. He acts according to his good will.
Furthermore, the deposit and the salary advance are subject to the same social and tax contributions as the traditional salary. On the other hand, the management and payment of direct debits remain calculated on the monthly salary, regardless of the distribution of payments.
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How to request a deposit or salary advance?
The request for a deposit or advance on salary must be formalized in writing with the employer, but the law does not impose a specific procedure. Some companies put in place internal rules or forms to govern this type of request, or agree on a frequency of payment of installments (monthly or exceptional).
Furthermore, certain collective agreements or company agreements may provide for more favorable conditions in terms of deposits or salary advances. If you wish to benefit from it, consult the collective agreement applicable to your company or find out about internal practices to find out your rights.
Could on-demand pay become the norm in France?
In France, the traditional monthly payment model remains the norm today, while labor law strictly regulates employee remuneration. Nevertheless, several factors could favor the implementation of pay on demand in the years to come.
First and foremost, inflation, which has caused demand for salary advances to surge in recent years. To meet increasingly tight budgets, many employees want greater flexibility in accessing their remuneration. Pay on demand can allow them to avoid a bank overdraft and the corresponding fees, but also the contraction of short-term consumer credit.
At the same time, technological developments could quickly facilitate the system. Companies specializing in “fintech” (financial technologies) are now developing tools that allow employees to request and receive part of their salary instantly via mobile applications. French start-ups, such as Rosaly or Wagestream, already offer this type of service, often in partnership with large companies.
Finally, from an HR point of view, on-demand pay could become a lever for employee loyalty, particularly in sectors where recruitment is currently difficult (restaurants, hotels, distribution).
However, several significant obstacles remain to the generalization of the system.
The traditional model of paying salaries at the end of the month remains deeply rooted in corporate culture in France. The current legal framework which governs salary deposits and advances also requires adaptations before considering widespread adoption of salary on demand.
Companies will also need to invest in suitable payroll management tools to avoid additional administrative costs or payment errors.
And how does it work abroad?
The United States is the pioneer of pay-on-demand. There, more and more companies, including large groups like Walmart or McDonald’s, have adopted this system for their employees. A generalization made possible by the flexibility of the American labor market, known to be much less regulated than that of France.
Several companies like Earnin and DailyPay dominate the American market today. These platforms allow workers to access their daily wages, a practice particularly popular in low-wage, flex-time industries, like fast food or retail.
In the United Kingdom, the trend is also growing. The British system, where monthly payment remains the norm, is starting to integrate this flexibility, particularly in sectors where turnover is high.
