France’s minimum wage to increase 1.6% from December 1

France’s minimum wage will see a 1.6% increase from December 1, reaching a new net sum of around €1,502 per month. 

Currently, France’s minimum wage (salaire minimum interprofessionnel de croissance, SMIC) is €1,477.93 net for a 35-hour work week, following the latest revision on June 1. 

The government announced the planned increase following a meeting with several leading unions on Monday (November 9) following major strike action last week. 

Unions including the CGT were dissatisfied with the meeting. Immediately after leaving, CGT leader Sophie Binet announced the call for a further day of protests on November 17.

An increase in the minimum wage was among one of several demands put forward by unions, but Ms Binet said the figure must be raised by a significant margin to be accepted.

“The inter-union coalition for the public sector has met and is calling for a new day of mobilisation, involving strikes and demonstrations, on November 17,” she said.

“The CGT calls on all employees, all retirees, and all young people to take ownership of this day and turn it into another major day of strikes and demonstrations.”

The call is currently backed by the the FSU (teaching union), Solidaires, UNSA CFE-CGC and FA-FP unions.

The CFDT and FO, France’s largest and third-largest respectively, have not yet confirmed they are backing the call.

CFDT leader Marylise Léon said that the union wanted to see the minimum wage increase by €100, with today’s announcement far off from this sum.

“Today, if you earn the minimum wage working full-time, you cannot live with dignity from your labour,” she said last Thursday.

Third increase this year

France’s minimum wage has already increased twice this year, on January 1 and June 1. The first came from annual revisions, and the second due to annual inflation passing 2%. 

These are the two main levers for increasing the minimum wage. However, governments can opt to make their own revisions – such as the planned increase on December 1 – if they choose to. 

This December 1 revision is the second-largest single increase in around 20 years, said Prime Minister Sébastien Lecornu. 

After December 1, the SMIC will have increased by 5.3% across the year, around €75 net. 

However, there are concerns that these increases can negatively affect France’s wage structure, squeezing earners who make only slightly above minimum wage. 

Last year, a board of fiscal advisors recommended France to not increase minimum wage above inflation, to prevent those on minimum wage catching up to higher earners. 

If the minimum wage rises more than other salaries, there is a risk of the SMIC overtaking salaries at the lower level, forcing businesses to pay extra.

It also increases discontent by workers close to the minimum wage, who may in turn ask for a pay increase to compensate. 

This is an issue of which unions are aware. 

“There is more to life than just the minimum wage,” said Ms Léon last week. 

"The idea is also to be able to negotiate across the entire pay scale, because we currently see that whenever there is inflation, the SMIC rises, but this leads to a compression of wages at the lower end.”

The government is hoping that businesses will take action themselves on the matter.

“We are going to ask industry sectors to take up this issue, account for the new minimum wage level, and see if they can take action regarding the lower end of their pay scales,” said Labour Minister Jean-Pierre Farandou following today’s announcement. 

He also announced the creation of a wage-monitoring committee, with more information to be released in the coming days.