Pay Equity France

Basic Summary

France requires companies with 50+ employees to calculate and publish an annual Gender Equality Index (Index de l'égalité professionnelle) scoring their performance on five gender equality indicators, including pay gaps. Scores below 75/100 trigger mandatory remediation within three years or face financial penalties.

Key Legislation

Labour Code (Code du Travail)

Articles L.3221-1 to L.3221-7: Establish the principle of equal pay for equal work or work of equal value between men and women.

Article L.1142-8: Requires companies to calculate and publish the Gender Equality Index annually.

Law No. 2018-771 (September 5, 2018)

Introduced the Index de l'égalité professionnelle femmes-hommes and enforcement mechanisms.

Decree No. 2019-15 (January 8, 2019)

Specifies the methodology for calculating the Gender Equality Index.

Gender Equality Index (Index de l'égalité professionnelle)

Scope

• 50 to 250 employees: Calculate 4 indicators (maximum 100 points)
• 250+ employees: Calculate 5 indicators (maximum 100 points)

The 5 Indicators (250+ employees)

1. Pay Gap (40 points maximum)

Methodology:

• Compare average remuneration by age group and job category (PCS-ESE classification)
• At least 10 age groups x 4 job categories = up to 40 comparison groups
• Calculate percentage gap for each group
• Weighted average based on number of employees

Scoring:

• 0% gap or favoring women: 40 points
• Gaps increase: points decrease
• Threshold: gaps >15% in any single category = 0 points for that category

Allowed adjustments: Maternity, adoption, parental leave absences can be neutralized

2. Individual Raise Rate Gap (20 points maximum for 50-250; 35 points for 250+)

Methodology:

• % of women receiving a raise vs. % of men receiving a raise
• Excludes employees returning from maternity/parental leave (counted separately)

Scoring:

• Equal raise rates or favoring women: maximum points
• Gap ≤2 percentage points: still earns significant points
• Gap >2 points: points decrease

3. Promotion Rate Gap (15 points maximum, only for 250+ employees)

Methodology:

• % of women promoted vs. % of men promoted

Scoring:

• Equal rates or favoring women: 15 points
• Gap ≤2 percentage points: 10 points
• Gap >2 points: points decrease

For companies with 50-250 employees, this indicator is combined with Indicator 2 for 35 points total.

4. Percentage of Women Receiving a Raise in Year of Return from Maternity Leave (15 points maximum)

Methodology:

• Among women who took maternity leave and returned, what % received a raise during the maternity leave year or upon return?

Scoring:

• 100% of returning mothers received raises: 15 points
• Less than 100%: 0 points
• Not applicable if no maternity leaves: maximum points by default

5. Number of Women in Top 10 Highest-Paid Positions (10 points maximum)

Methodology:

• Count the number of women among the 10 highest-paid employees

Scoring:

• 4 or 5 women: 10 points
• 2 or 3 women: 5 points
• 0 or 1 woman: 0 points

Total Score

Maximum: 100 points

Calculable threshold: Must have calculable results for at least 75% of the points. Otherwise, the index is not calculable and employer must justify why.

Publication and Reporting

Annual Obligations

Calculation period: Prior calendar year (January 1 - December 31)

Publication deadline: March 1 each year

Where to publish:

• Company website (if applicable)
• Employee portal or visible location within workplace
• Submitted to labour inspectorate (inspection du travail) and employee representatives (CSE)
• Submitted via online portal: https://index-egapro.travail.gouv.fr

Data to publish:

• Overall index score (out of 100)
• Score for each indicator
• Breakdown of pay gaps by category

Remediation Requirements

Score Thresholds

• ≥85 points: Compliant, no action required (except maintain/improve)
• 75-84 points: Warning zone; encouraged to improve
• <75 points: Non-compliant; must publish corrective measures and objectives

Corrective Action Plan

Employers scoring <75 must:

1. Publish objectives and corrective measures within 3 years
2. Implement measures addressing the specific indicators dragging down the score
3. Re-calculate annually and demonstrate progress

Penalties for Non-Compliance

If score remains <75 after 3 years:

• Financial penalty: Up to 1% of total annual payroll
• Applied as administrative fine by labour inspectorate
• Public disclosure of non-compliance

Additional penalties:

• Failure to publish index: Up to 1% of payroll penalty
• Failure to submit to authorities: Fines up to €7,500 (legal entity) or €1,500 (individual)

Equal Pay Principles

Work of Equal Value

French law requires equal pay for work of equal value, assessed by:

• Professional knowledge (qualifications, training, experience)
• Capacities (physical, intellectual effort)
• Responsibilities
• Working conditions (constraints, hardship)

Pay differences must be justified by objective, verifiable, and job-related factors such as:

• Seniority
• Performance (measured objectively)
• Job classification level
• Qualifications required
• Regional cost-of-living differences

Not acceptable: Gender, family status, pregnancy, parental leave, or subjective factors.

Collective Bargaining and CSE Role

Social and Economic Committee (CSE)

• Must be consulted on the gender equality index and corrective measures
• Reviews annual report on professional equality
• Can propose actions to reduce gaps

Mandatory Negotiations

Companies must negotiate on professional equality annually or periodically per collective agreement, covering:

• Pay gaps
• Career development
• Work-life balance

Resources

• Ministry of Labour (Ministère du Travail): https://travail-emploi.gouv.fr
• Index Egapro portal: https://index-egapro.travail.gouv.fr
• Labour Code (Légifrance): https://www.legifrance.gouv.fr
• CSE guidance: https://www.economie.gouv.fr

Compliance Calendar

Date	Action
December 31	End of calculation period (prior year data)
By March 1	Calculate, publish, and submit Gender Equality Index
Ongoing	If score <75, develop and implement corrective action plan
Year 3 after first <75 score	Must achieve ≥75 or face 1% payroll penalty

Best Practices

Data Preparation

• Maintain accurate HRIS with job category (PCS-ESE), age, gender, pay, raises, promotions
• Track maternity/parental leave and return dates
• Identify top 10 earners and their gender

Improving Scores

Indicator 1 (Pay Gap):

• Conduct pay equity audits and remediate unjustified gaps
• Ensure objective, transparent pay-setting criteria
• Review starting salaries for gender bias

Indicator 2 (Raises):

• Set transparent raise criteria and apply consistently
• Monitor raise distribution by gender
• Ensure returning mothers receive catch-up raises

Indicator 3 (Promotions, 250+):

• Review promotion criteria for bias
• Develop talent pipelines for women
• Set representation targets

Indicator 4 (Maternity return raises):

• Systematic policy: all employees returning from maternity leave receive annual raise review
• Communicate policy clearly

Indicator 5 (Top 10):

• Develop women into senior leadership
• Review succession planning and executive compensation

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Disclaimer: This guide is for informational purposes only and does not constitute legal advice.