Private sector salary: is seniority pay mandatory?

No, the regulations do not require the employer to pay a seniority premium to the employee.

However, the payment of a seniority premium must be paid to the employee only if it is provided for in one of the following conditions:

• By a collective agreement or a company agreement
• In the employment contract
• By a use

The amount of the seniority premium may be, for example:

• A lump sum
• A percentage of the base wage or the total gross wage or the agreed minimum wage
• An occasional (non-monthly) reward

This premium is in addition to the base salary and must be shown separately on the pay slip.

If payment of the premium is due and the employer refuses to pay it, the employee may seize the prud'homme council to assert his rights.