Subrogation of Wages: Definition and Best Instructions for Use
July 5, 2022
Did You Know?
What is subrogation ?
If you are asking yourself this question, it is because you are probably facing an employee’s work stoppage, with salary maintenance.
Is subrogation compulsory? What conditions must be met to implement it? Can there be maintenance of salary without subrogation ?
We answer all your questions in this article and present a selection of payroll software, so that you can manage the subrogation of daily allowances (or IJSS ), legally and peacefully!
Subrogation: definition
Subrogation is a process that allows the employer to simplify the maintenance of the remuneration of an absent employee (sick leave, parental leave or accident at work), by collecting on his behalf the daily allowances from the Social Security ( IJSS or IJ ) due by Health Insurance.
When there is no subrogation mechanism in place in the company, the absent employee receives two payments:
- that of the IJ paid by the CPAM,
- salary supplement paid by the employer.
Subrogation therefore allows the employee to receive a single payment, and the company to limit the risk of calculation errors and to simplify accounting management.
Conditions for implementing wage subrogation
Two conditions must be met in order to be able to set up a subrogation action :
- the salary must be paid in part or in full for the duration of the stoppage ;
- the maintained salary must be at least equal to the IJSS .
What are the differences between salary maintenance without subrogation, and with?
Is subrogation compulsory?
Subrogation is compulsory only if the collective agreement or the branch agreement on which your company depends stipulates it.
Otherwise :
- or the amount of the salary supplement is equal to the amount of the IJ, in which case the employer automatically subrogates freely and chooses to apply it or not.
- or the amount is lower than the amount of the IJ, in which case he needs the agreement of the employee, with signature.
How does subrogation work?
The wage subrogation request
Who requests subrogation? As the employer, you are responsible for the request for subrogation. Follow these steps step by step:
- Make the request for subrogation when declaring the work stoppage via the DSN ( nominative social declaration ).
- Complete the “Subrogation” or “Application for subrogation in the event of maintenance of salary” box.
- Fill in the start date of the work stoppage . It must correspond perfectly to that indicated by the doctor on the certificate, even if the beginning falls on non-working days. Otherwise, it can distort the waiting period and block subrogation.
- Indicate the maximum possible date of salary maintenance , as defined by the collective agreement or the branch agreement. This date is not necessarily that of the end of the work stoppage.
- Fill in the bank details of the account to which the daily allowances must be paid.
Calculation of continued salary with subrogation
If you have opted for subrogation, it is your responsibility, as an employer, to include it on the work report of the employee concerned.
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To do this, you must clearly show the amount of the IJSS as follows:
| Calculation of net IJSS salary maintenance Dailyamount of IJSS: sum of wages for the last 3 months/number of days over the 3 months x 50{b2e062dacaa682ac06b65f50eda167b816e329330e76ab97664011f321ee08e4}Gross IJSS: daily amount IJSS x number of days compensated by Social SecurityNet IJSS: gross IJSS x 6.70{b2e062dacaa682ac06b65f50eda167b816e329330e76ab97664011f321ee08e4} of CSG/CRDS contributions |
The IJ are taxable on a 100{b2e062dacaa682ac06b65f50eda167b816e329330e76ab97664011f321ee08e4} basis in the case of non-occupational illness and parental leave, and at 50{b2e062dacaa682ac06b65f50eda167b816e329330e76ab97664011f321ee08e4} in the case of occupational illness or accident at work.
For the calculation of the withholding tax, it will be necessary to operate as follows:
- Gross IJSS x 3.80{b2e062dacaa682ac06b65f50eda167b816e329330e76ab97664011f321ee08e4}
Subrogation: sample pay slip
Here is an example of a simplified payslip:
| Base salary | €1,900 |
| Sickness absence | – €1,203.33 |
| Gross salary | = €696.67 |
| Employee contributions | – €151.04 |
| Subrogated Net IJSS | + €466.04 |
| net payable | = 1,011.83 |
| Net taxable | €565.48 |
| Withholding tax(net taxable + net IJSS) x 10{b2e062dacaa682ac06b65f50eda167b816e329330e76ab97664011f321ee08e4} | €104.62 |
Payroll software to support you
Salary maintenance with subrogation entails real management imperatives for the employer, particularly when drawing up the payslip. There are several hundred pay rule changes that occur each year, which sometimes makes it difficult.
In order to comply with legal obligations, to carry out the correct calculations and to respect the terms on both sides, it seems essential to help you with a powerful tool.
This is why we are listing a selection of payroll software for you, to put subrogation into practice legally… and above all with complete peace of mind:
- Fiche-Paie.net : thanks to the online software, simply create compliant payslips in just two minutes. It even has a payroll service at your service, by email, chat and telephone, which supports you in the production of your reports.
- Inexpensive offers support from a team of payroll specialists, spread over ten regional agencies for greater proximity and the occasional resumption of the production of your payroll in the event of the sudden impossibility of managing your payroll internally.
- Nibelis is a human resources information system suitable for any type of structure, which also provides a team of payroll and HR experts to provide you with the answer that is in line with your organisation.
- Openpaye manages more than 600 collective agreements and thus adapts to all the specificities of your company; its dashboard allows you to follow at a glance all your files in progress, and the actions remaining to be carried out.
- PayFit sets subrogation for all your employees by default. You just have to provide your RIB to PayFit, which sends it to the CPAM centre with the first salary certificate. It automatically calculates the IJSS and makes them appear on the employee’s report.
