French minimum wage: experts advise annual update for 2026 remain tied to inflation rate
1.4% rise expected to outstrip household cost increase – how does it compare to other countries?
France’s minimum wage is usually updated annually on January 1
Simona pilolla 2/Shutterstock
France’s minimum wage is not expected to see an above-average inflation boost next year, after a board of fiscal experts recommended against it.
The ‘Smic’ (salaire minimum interprofessionnel de croissance) is re-evaluated each year on January 1, based on the previous year’s expected inflation.
For 2025, this is expected to be 1.4%.
While the exact figure will not be known until January, the monthly net minimum wage in 2026 will rise by around €20, from €1,426.30 per month to around €1,446.
In exceptional circumstances – such as a spike in inflation above 2% before the end of the year – or direct government intervention to boost household purchasing power, an additional increase can take place during the year.
While the government is free to disregard the expert group and increase the rate above inflation if it wishes, it customarily follows advice on rates.
The expert groups recommended that no additional increase take place next year due to a “slowdown in the labour market” and the decreasing gap between France’s minimum and median wages.
Additional rises in the SMIC could risk the rate approaching those of jobs that theoretically ought to pay above the minimum threshold, potentially causing discontent and pressuring businesses to shoulder higher expenditure on labour costs overall.
France’s minimum wage has “increased by 17% since 2021, while negotiated sectoral wages and actual base wages have increased by approximately 15%,” says the report according to public service broadcaster FranceInfo.
However, the report outlined that the automatic inflation-based increase will provide better purchasing power for households, with average household costs set to increase by only around 1% next year.
The expert group also recommends changing the future schedule for SMIC announcements, bringing them forwards from December to September.
This would allow unions and businesses more time to negotiate wage increases for other workers based on the incoming changes.
How does France’s minimum wage compare to other countries?
France’s net minimum wage – as of November 2025, €1,426.30 net per month – is on the higher end of those in Europe.
The minimum wage was not increased in January 2025, as an increase slightly earlier in November 2024 covered the legally-required increase due to inflation across the 2024 year.
Countries such as Germany (€1,538) and Spain (€1,198) are in a similar category, although Belgium (€1,959), Ireland (€2,034), the Netherlands (€2,257) and Luxembourg (€2,296 for unskilled workers) are all higher.
Many European countries do not have a minimum wage, including Italy, Austria, Denmark, Norway, and Sweden (although in the latter three wages are generally high).
The lowest EU minimum monthly net wage is €427 in Bulgaria (1,077 lev). In January 2026, the country will convert its currency to the euro and join the eurozone.
In the UK, the current monthly minimum wage is €2,022 (£2,010.58 for a 38-hour work week), but is set to increase 4.1% from April 2026.
In the US, the federal minimum wage is $1,218 ($7.25 per hour) but states are free to set their own rates, and some jobs are exempt from this minimum.
