Build a salary grid and pay ranges by role

Quick answer. A salary grid structures compensation by role level and experience, ensures internal equity, respects legal minima (SMIC €12.31/h as of June 1, 2026) and contractual floors, and complies with regulatory pay transparency. Here's the 7-step method: classify your roles, benchmark the market, verify legal obligations, build bands with seniority steps, analyze internal equity (including F/M gaps), integrate regulatory transparency, and communicate with the works council.

For decades, French employers have managed salary grids unevenly. SMEs often handle pay empirically: give a long-tenured employee a 3% raise, hire a junior above SMIC because you need the hire. It's common practice, but it exposes the firm to two major risks in 2026.

First, labor inspections intensify around gender equality (Rixain Law 2022). Any unexplained pay gap between men and women — even unintentional — must be justified by objective factors (experience, responsibility, performance). Without a documented grid, this justification becomes impossible.

Second, pay transparency is advancing progressively via EU Directive 2023/970, whose transposition into French law was due by 7 June 2026. Future job postings must display a salary band. Candidates will have the right to salary information. Formal prohibition on asking salary history. A grid lets you communicate this transparency without revealing current employee pay.

For an SME director (10-100 employees), a salary grid is no longer optional: it's a governance necessity, legal compliance, and employer-branding tool.

A salary grid is a structured table linking each role to a defined band based on hierarchy, required competency, and experience. It typically includes:

• Role levels or families (e.g., assistant, experienced, expert, manager)
• Minimum salary per level (respecting SMIC and sectoral minima)
• Median or reference salary (market positioning)
• Maximum salary (flexibility for performance or specialization)
• Seniority steps (e.g., +€150 every 2-3 years)

Operational advantages#

1. Internal equity: all employees at the same level earn comparable pay, independent of hire date or salary history.
2. Attraction & retention: a clear, communicated grid builds reassuring employer branding. Candidates know their likely position.
3. Dispute reduction: upon URSSAF audit or HR litigation, the grid proves pay gaps are justified by role classification.
4. Legal compliance: satisfies gender-equality disclosure (Rixain Law), facilitates equality index reporting.
5. Payroll forecasting: grid enables cost planning and future raise projection.

Start by inventorying all current and planned positions (accountant, HR assistant, sales manager, etc.). Group them into families or levels by three criteria:

Example: accounting firm (10 employees)#

For each family, document a brief role profile: key responsibilities, autonomy, span of control, required experience.

A grid without market reference becomes obsolete and drives turnover. Gather competitive salary data:

Free public sources:

• Public employment agency: online listings, median salaries by role and region
• National statistics office: salary surveys by industry
• Sector studies: professional associations (accounting, hospitality, retail, etc.)

Paid sources (recommended):

• Compensation consulting: major advisory firms
• Private salary databases: public benchmarking sites, industry reports
• Member surveys via your professional body (accountants, lawyers, etc.)

Worked example: accounting firm in Paris 8e (2026)#

The "+5%" positioning means Cabinet Hayot Expertise sets pay slightly above market, aiding talent attraction (employer brand).

SMIC 2026 and legal references#

As of June 1, 2026, the gross SMIC is €12.31 per hour, or €1,867.02 gross per month over 35 hours/week. No salary may fall below this floor.

Collective agreement minima (IDCC)#

Each industry is governed by a collective bargaining agreement setting minimum salaries by seniority step. Example:

Before building your grid, identify your IDCC (number and exact title), then consult salary scales from:

• Official legal databases (Legifrance, etc.)
• Employer associations (MEDEF, CGPME, etc.)
• Your accounting adviser

Worked example: positioning a role against the contractual minimum#

For an accounting firm (collective agreement IDCC 0787), as in any industry, the minimum for an entry-level assistant is not a simple multiple of the SMIC: it derives from the point value and the role coefficient, read off the agreement's latest pay addendum. You then compare that contractual minimum with the SMIC and keep the higher of the two. Your grid can never fall below this floor.

Basic structure: bands per level#

For each level (assistant, experienced, expert), define three thresholds:

Seniority steps#

Build in progressive steps to reward experience and loyalty without reclassifying:

Level "Experienced" — seniority steps (every 2 years)
- Step 1 (0–2 yrs): €26,000
- Step 2 (2–4 yrs): €28,000
- Step 3 (4–6 yrs): €30,000 (median)
- Step 4 (6+ yrs): €32,000
- Step 5 (10+ yrs): €34,000 (maximum)

Intra-step progression can be fixed (same rise for all) or variable by performance.

Full grid example (small firm)#

Equity audit: compare actual salaries vs. target grid#

Overlay your current employee salaries onto the target grid. Flag anomalies:

• Overpaid: employee above their level's maximum (cause: excess seniority, rare skills, legacy practice)
• Underpaid: employee below their level's minimum (rare, signals error or historical injustice)
• Properly positioned: employee within band

Audit example#

Current payroll vs. target grid (January 2026)

Employee A (Assistant, 8 years tenure)
  Current: €22,500/year
  Grid: minimum €20,000 ; median €22,000 ; maximum €24,500
  → Slightly overpaid → No immediate correction; freeze raises 1 year.

Employee B (Accountant, 3 years tenure)
  Current: €28,000/year
  Grid: minimum €26,000 ; median €30,000 ; maximum €34,000
  → Underpaid by €2,000 → Gradual raise (+€1,000/year, 2 years).

Employee C (Compliance lead, 6 years tenure)
  Current: €42,500/year
  Grid: minimum €36,000 ; median €40,000 ; maximum €44,000
  → Properly positioned, slightly above median → Normal raise (inflation).

Check gender pay gap#

Rixain Law 2022 requires employers with 50+ employees to calculate a gender-equality index across four indicators:

1. Remuneration gap between women and men in equivalent roles (40 points)
2. Gap in raises and promotions (35 points)
3. Return from maternity leave (15 points)
4. Female % among top 10 earners (10 points)

For firms with fewer than 50 employees, the index is not mandatory, but a remedial-measures statement is required (works council input).

Cabinet Hayot Expertise case study#

We audited a 25-person accounting SME (10 women, 15 men). At equivalent role (accountant), women earned on average 3.2% less — mainly because one woman declined promotion 2 years prior. Implementing a grid eliminated this gap in 6 months, without major payroll impact.

EU Directive 2023/970: French implementation status June 2026#

EU Directive 2023/970 progressively mandates compensation transparency across Europe. Key elements:

• Candidate right to information: before or at the first interview, the job posting or company must display a salary band (minimum and maximum).
• Prohibition on salary-history inquiries: recruiters cannot ask candidates about prior salaries (as a general rule).
• Annual F/M gap reporting: employers must disclose (publicly or to authority) average gender pay gap.
• Right to explanation: if a gap exists, the employer must explain it (qualifications, experience, performance).

French implementation status (as of June 7, 2026): Transposition is expected via decree or law. At the date of writing, the full French text has not yet been published in the Official Journal. Provisions will take effect per a schedule to be confirmed. Employers should monitor announcements from the Ministry of Labor.

How a grid simplifies compliance#

1. Transparent job posts: you can advertise "Position: Accountant, band €26,000–€34,000/year gross."
2. No interview surprises: candidates know their likely range.
3. Gap justification: if a man and woman in the same level earn differently, the grid proves it's due to seniority steps or documented performance.

Works council / union representative consultation#

For firms with 50+ employees, the Works Council (CSE) must be consulted before grid rollout (Labor Code Article L2312-36). The consultation covers payroll impact, catch-up plans for underpaid staff, and raise mechanics.

Legal formalization#

The grid can be enacted via:

1. Collective agreement (strongest legal footing): signed between management and unions or delegates.
2. Employer unilateral decision (DUE) in writing, communicated to all employees.

We recommend a collective agreement for 30+ employee SMEs; a DUE for smaller structures.

Annual revision#

Each year, typically January–February, revise the grid per:

• SMIC of the year: as of June 1, 2026, it rises to €12.31/h. In January 2027, the new SMIC will be announced. Grid minimums must rise accordingly.
• Inflation: if annual inflation is +2%, raise all band thresholds by 2%.
• Market evolution: check updated salary studies in your sector.
• Contractual minima updates: some IDCCs revise grids annually (check your own agreement).

Example 2027 revision:

Grid 2026 (Experienced level):
  Min: €26,000, Median: €30,000, Max: €34,000

Inflation 2026: +2.1%
2027 revision (Experienced level):
  Min: €26,000 × 1.021 = €26,546
  Median: €30,000 × 1.021 = €30,630
  Max: €34,000 × 1.021 = €34,714

Case 1: Remote or expatriate employees#

An employee working remotely from abroad remains subject to the French grid if hired on a French permanent contract and paid in euros. Apply the grid fully.

Case 2: Individual raises beyond the grid#

The grid sets a band, but an employee may exceptionally exceed it if they:

• Earn a promotion (move to next level)
• Gain rare skills (certification, specialization) valued above market
• Achieve exceptional performance (raise within band, or slightly above with documented justification)

Always document these exceptions for audit defense.

Case 3: Base salary vs. variable/bonus pay#

The grid covers fixed base salary. Bonuses (performance, results, targets) are separate. They must not circumvent the grid (e.g., underpaying base but compensating with a huge bonus: forbidden).

Case 4: Apprentices and interns#

Apprentices legally earn SMIC, but collective agreements often set lower prorated rates. Check your IDCC.

Interns are not employees (no employment contract); the grid doesn't directly apply, but a statutory internship allowance must be paid (Decree 2015-90).

Watchpoint 1: Directive 2023/970 transposition#

Monitor publication of the French transposition decree (expected June 2026). Once in effect, job postings must display salary band. Prepare your postings now.

Watchpoint 2: SMIC and collective minima changes#

SMIC typically rises in January and June. Each SMIC increase cascades: agreement minima, grid minimums, steps. Set automatic reminders or work with your accounting adviser.

Watchpoint 3: Equality index and reporting#

Even for small firms (<50 employees), document the absence of unjustified F/M pay gaps. Upon audit, you must explain any variance.

Watchpoint 4: Raise freeze vs. inflation#

If you freeze salaries (economic hardship), formalize and communicate it. An undisclosed freeze invites back-pay claims.

Recently, an SME director asked us: "Why a grid? I've known my staff 15 years; I know how to pay them." Six months later, a labor inspection arrived following an employee complaint about unjustified pay disparity. The director had no written documentation justifying salary differences. The inspector found three violations (8% F/M gap, one manager underpaid by €4,500 versus market, collective agreement not applied). URSSAF assessment: €12,000 + interest. Catch-up payroll cost: €18,000 over 2 years.

With a formalized, updated grid, this problem is avoided. Pay equity is therefore not a "nice-to-have" HR practice; it's a governance obligation and legal protection.

At Cabinet Hayot Expertise, we recommend a grid even for 5–10 employee firms. It's a light investment (audit + formalization, 2–3 days) with significant dividends: loyalty, employer brand, compliance, peace of mind.

To build a coherent, durable salary grid in 2026:

1. Classify roles by level and responsibility (1–2 days).
2. Gather market data (sector surveys, role studies).
3. Verify legal and contractual minima for your IDCC.
4. Build a simple grid: 3–4 levels, clear bands, seniority steps.
5. Compare against current salaries; plan gradual catch-ups.
6. Document absence of F/M gap (or justified explanations).
7. Formalize via collective agreement (50+ employees) or written DUE.
8. Revise annually per SMIC, inflation, market.